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American Tower Corporation (REIT)

Market Cap

US$112.0b

Last Updated

2021/05/17 22:02 UTC

Data Sources

Company Financials +

Executive Summary

American Tower, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of approximately 181,000 communications sites. More Details


Snowflake Analysis

Acceptable track record second-rate dividend payer.


Similar Companies

Share Price & News

How has American Tower Corporation (REIT)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AMT is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: AMT's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-1.1%

AMT

-1.3%

US REITs

-0.6%

US Market


1 Year Return

4.2%

AMT

34.1%

US REITs

46.0%

US Market

Return vs Industry: AMT underperformed the US REITs industry which returned 41.1% over the past year.

Return vs Market: AMT underperformed the US Market which returned 50.8% over the past year.


Shareholder returns

AMTIndustryMarket
7 Day-1.1%-1.3%-0.6%
30 Day-1.1%1.1%-1.8%
90 Day9.3%9.4%0.2%
1 Year6.3%4.2%39.6%34.1%48.4%46.0%
3 Year89.7%79.0%43.8%26.5%60.5%50.4%
5 Year160.5%136.1%54.0%23.1%125.9%100.9%

Long-Term Price Volatility Vs. Market

How volatile is American Tower Corporation (REIT)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is American Tower Corporation (REIT) undervalued compared to its fair value and its price relative to the market?

18.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AMT ($245.89) is trading below our estimate of fair value ($301.57)

Significantly Below Fair Value: AMT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AMT is poor value based on its PE Ratio (56.8x) compared to the US REITs industry average (43.6x).

PE vs Market: AMT is poor value based on its PE Ratio (56.8x) compared to the US market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: AMT is poor value based on its PEG Ratio (7.1x)


Price to Book Ratio

PB vs Industry: AMT is overvalued based on its PB Ratio (28.2x) compared to the US REITs industry average (1.8x).


Future Growth

How is American Tower Corporation (REIT) forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

8.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMT's forecast earnings growth (8% per year) is above the savings rate (2%).

Earnings vs Market: AMT's earnings (8% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: AMT's earnings are forecast to grow, but not significantly.

Revenue vs Market: AMT's revenue (4.9% per year) is forecast to grow slower than the US market (9% per year).

High Growth Revenue: AMT's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AMT's Return on Equity is forecast to be very high in 3 years time (98.5%).


Past Performance

How has American Tower Corporation (REIT) performed over the past 5 years?

20.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMT has high quality earnings.

Growing Profit Margin: AMT's current net profit margins (23.4%) are lower than last year (24.6%).


Past Earnings Growth Analysis

Earnings Trend: AMT's earnings have grown significantly by 20.2% per year over the past 5 years.

Accelerating Growth: AMT's earnings growth over the past year (0.8%) is below its 5-year average (20.2% per year).

Earnings vs Industry: AMT earnings growth over the past year (0.8%) exceeded the REITs industry -10.5%.


Return on Equity

High ROE: Whilst AMT's Return on Equity (42.3%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is American Tower Corporation (REIT)'s financial position?


Financial Position Analysis

Short Term Liabilities: AMT's short term assets ($3.0B) do not cover its short term liabilities ($4.2B).

Long Term Liabilities: AMT's short term assets ($3.0B) do not cover its long term liabilities ($38.2B).


Debt to Equity History and Analysis

Debt Level: AMT's debt to equity ratio (643.6%) is considered high.

Reducing Debt: AMT's debt to equity ratio has increased from 243.1% to 643.6% over the past 5 years.

Debt Coverage: AMT's debt is not well covered by operating cash flow (14.2%).

Interest Coverage: AMT's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet


Dividend

What is American Tower Corporation (REIT) current dividend yield, its reliability and sustainability?

2.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AMT's dividend (2.02%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: AMT's dividend (2.02%) is low compared to the top 25% of dividend payers in the US market (3.42%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, AMT has been paying a dividend for less than 10 years.

Growing Dividend: AMT's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.2%), AMT's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AMT's dividends in 3 years are forecast to be covered by earnings (72.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Tom Bartlett (61 yo)

1.17yrs

Tenure

US$14,701,304

Compensation

Mr. Thomas A. Bartlett, also known as Tom, serves as President and Chief Executive Officer at American Tower Corporation & American Tower Corporation (REIT) since March 16, 2020 and serves as Director sinc...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD14.70M) is above average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Tom's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: AMT's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: AMT's board of directors are considered experienced (6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.4%.


Top Shareholders

Company Information

American Tower Corporation (REIT)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: American Tower Corporation (REIT)
  • Ticker: AMT
  • Exchange: NYSE
  • Founded: 1995
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Market Cap: US$111.979b
  • Shares outstanding: 453.80m
  • Website: https://www.americantower.com

Number of Employees


Location

  • American Tower Corporation (REIT)
  • 116 Huntington Avenue
  • 11th Floor
  • Boston
  • Massachusetts
  • 2116
  • United States

Listings


Biography

American Tower, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of approximately 181,000 communications si...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/17 22:02
End of Day Share Price2021/05/17 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.