NYSE:AMT

Stock Analysis Report

American Tower Corporation (REIT)

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 over 171,000 communications sites.

Rewards

Trading at 24.8% below its fair value

Earnings are forecast to grow 12.83% per year

Earnings grew by 37.1% over the past year

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results



Snowflake Analysis

Proven track record second-rate dividend payer.


Similar Companies

SBA Communications

NasdaqGS:SBAC

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.8%

AMT

2.1%

US REITs

1.7%

US Market


1 Year Return

41.8%

AMT

18.5%

US REITs

23.6%

US Market

Return vs Industry: AMT exceeded the US REITs industry which returned 17.9% over the past year.

Return vs Market: AMT exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

AMTIndustryMarket
7 Day-0.8%2.1%1.7%
30 Day2.5%2.9%3.5%
90 Day2.9%-0.7%11.7%
1 Year44.3%41.8%23.4%18.5%26.2%23.6%
3 Year136.4%122.8%35.2%18.2%53.2%43.3%
5 Year153.2%129.4%46.1%16.0%75.5%56.1%

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?

25.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AMT ($233.95) is trading below our estimate of fair value ($311.25)

Significantly Below Fair Value: AMT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AMT is poor value based on its PE Ratio (64.5x) compared to the REITs industry average (37.8x).

PE vs Market: AMT is poor value based on its PE Ratio (64.5x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: AMT is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: AMT is overvalued based on its PB Ratio (19.8x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is American Tower Corporation (REIT) forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

12.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMT's forecast earnings growth (12.8% per year) is above the savings rate (1.7%).

Earnings vs Market: AMT's earnings (12.8% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: AMT's revenue (6.8% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: AMT's revenue (6.8% 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 (124%).


Next Steps

Past Performance

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

17.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMT has a large one-off loss of $732.8M impacting its September 30 2019 financial results.

Growing Profit Margin: AMT's current net profit margins (20.6%) are higher than last year (16.7%).


Past Earnings Growth Analysis

Earnings Trend: AMT's earnings have grown by 17.7% per year over the past 5 years.

Accelerating Growth: AMT's earnings growth over the past year (37.1%) exceeds its 5-year average (17.7% per year).

Earnings vs Industry: AMT earnings growth over the past year (37.1%) exceeded the REITs industry 8.1%.


Return on Equity

High ROE: Whilst AMT's Return on Equity (25.74%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is American Tower Corporation (REIT)'s financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: AMT has a high level of physical assets or inventory.

Debt Coverage by Assets: AMT's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: AMT's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if AMT has a sufficient allowance for bad loans.

Low Risk Liabilities: AMT reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if AMT has an acceptable proportion of non-loan assets held.

Low Risk Deposits: AMT has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if AMT has an appropriate level of bad loans.


Next Steps

Dividend

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

1.73%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years2.3%

Current dividend yield vs market & industry

Notable Dividend: AMT's dividend (1.73%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: AMT's dividend (1.73%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.7%), AMT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AMT's dividends in 3 years are forecast to be thoroughly covered by earnings (0.1% payout ratio).


Next Steps

Management

What is the CEO of American Tower Corporation (REIT)'s salary, the management and board of directors tenure and is there insider trading?

13.5yrs

Average management tenure


CEO

Jim Taiclet (58yo)

16.3yrs

Tenure

US$14,307,936

Compensation

Mr. James D. Taiclet, Jr., also known as Jim, has been Chairman of the Board at American Tower Corporation since February 13, 2004 and serves as its Director since November 2003. He has been Chief Executiv ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD14.31M) is above average for companies of similar size in the US market ($USD10.76M).

Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.


Management Age and Tenure

13.5yrs

Average Tenure

58yo

Average Age

Experienced Management: AMT's management team is seasoned and experienced (13.5 years average tenure).


Board Age and Tenure

14.0yrs

Average Tenure

69yo

Average Age

Experienced Board: AMT's board of directors are seasoned and experienced ( 14 years average tenure).


Insider Trading

Insider Buying: AMT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$206,78008 Nov 19
Robert Meyer
EntityIndividual
Role
Controller
Senior VP of Finance & Corporate Controller
Shares1,000
Max PriceUS$206.78
SellUS$391,02510 May 19
David Sharbutt
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,035
Max PriceUS$192.15
SellUS$2,459,09108 May 19
William Hess
EntityIndividual
Shares12,768
Max PriceUS$193.16
SellUS$3,739,40014 Mar 19
William Hess
EntityIndividual
Shares20,000
Max PriceUS$186.97
SellUS$176,06005 Mar 19
David Sharbutt
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,009
Max PriceUS$174.49

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jim Taiclet (58yo)

    Chairman

    • Tenure: 16.3yrs
    • Compensation: US$14.31m
  • Tom Bartlett (60yo)

    Executive VP & CFO

    • Tenure: 10.8yrs
    • Compensation: US$6.12m
  • Amit Sharma (69yo)

    Executive VP & President of Asia

    • Compensation: US$6.14m
  • Bob Meyer (55yo)

    Senior VP of Finance & Corporate Controller

    • Rodney Smith

      Senior VP of Corporate Finance & Treasurer

      • Ed DiSanto (66yo)

        Executive VP

        • Compensation: US$5.51m
      • Olivier Puech (51yo)

        Executive VP & President of Latin America and EMEA

        • Tenure: 7yrs
      • Michael Powell

        Vice President of Financial Planning

        • Igor Khislavsky

          Senior Director of Investor Relations

          • Steve Vondran (48yo)

            Executive VP & President of US Tower Division

            • Tenure: 20yrs

          Board Members

          • Ray Dolan (61yo)

            Independent Director

            • Tenure: 16.9yrs
            • Compensation: US$275.04k
          • Pam Reeve (69yo)

            Lead Director

            • Tenure: 15.7yrs
            • Compensation: US$305.04k
          • Jim Taiclet (58yo)

            Chairman

            • Tenure: 16.3yrs
            • Compensation: US$14.31m
          • David Sharbutt (69yo)

            Independent Director

            • Tenure: 13.5yrs
            • Compensation: US$292.54k
          • Craig Macnab (63yo)

            Independent Director

            • Tenure: 5.1yrs
            • Compensation: US$285.04k
          • Bob Hormats (76yo)

            Independent Director

            • Tenure: 4.3yrs
            • Compensation: US$275.04k
          • Samme Thompson (73yo)

            Independent Director

            • Tenure: 14.4yrs
            • Compensation: US$290.04k
          • JoAnn Reed (63yo)

            Independent Director

            • Tenure: 12.7yrs
            • Compensation: US$295.04k
          • Gustavo Lara Cantu (69yo)

            Independent Director

            • Tenure: 15.2yrs
            • Compensation: US$275.04k
          • Stephen Harris

            Chairman of ATC Europe

            • Tenure: 2.5yrs

          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$103.391b
          • Shares outstanding: 442.94m
          • Website: https://www.americantower.com

          Number of Employees


          Location

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

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          AMTNYSE (New York Stock Exchange)YesNew Common StockUSUSDJun 1998
          A0TDB (Deutsche Boerse AG)YesNew Common StockDEEURJun 1998
          AMT *BMV (Bolsa Mexicana de Valores)YesNew Common StockMXMXNJun 1998
          0HEULSE (London Stock Exchange)YesNew Common StockGBUSDJun 1998
          AMTGWBAG (Wiener Boerse AG)YesNew Common StockATEURJun 1998

          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 over 171,000 communications sites. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/20 00:23
          End of Day Share Price2020/01/17 00:00
          Earnings2019/09/30
          Annual Earnings2018/12/31


          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.