American Tower Corporation Fundamental Analysis (NYSE: AMT)
American Tower Corporation (NYSE: AMT) shows strong financial fundamentals with a PE ratio of 23.77, profit margin of 30.88%, and ROE of 90.23%. The company generates $10.9B in annual revenue with moderate year-over-year growth of 5.11%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze AMT's fundamental strength across five key dimensions:
Efficiency Score
WeakAMT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAMT trades at attractive valuation levels.
Growth Score
ExcellentAMT delivers strong and consistent growth momentum.
Financial Health Score
WeakAMT carries high financial risk with limited liquidity.
Profitability Score
ExcellentAMT achieves industry-leading margins.
Key Financial Metrics
Is AMT Expensive or Cheap?
P/E Ratio
AMT trades at 23.77 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AMT's PEG of 0.15 indicates potential undervaluation.
Price to Book
The market values American Tower Corporation at 21.69 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.33 times EBITDA. This is generally considered low.
How Well Does AMT Make Money?
Net Profit Margin
For every $100 in sales, American Tower Corporation keeps $30.88 as profit after all expenses.
Operating Margin
Core operations generate 44.40 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $90.23 in profit for every $100 of shareholder equity.
ROA
American Tower Corporation generates $5.34 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
American Tower Corporation generates strong operating cash flow of $5.77B, reflecting robust business health.
Free Cash Flow
American Tower Corporation generates strong free cash flow of $3.96B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.50 in free cash annually.
FCF Yield
AMT converts 4.91% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.77
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
21.69
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.37
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
12.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.35
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.90
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How AMT Stacks Against Its Sector Peers
| Metric | AMT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.77 | 24.44 | Neutral |
| ROE | 90.23% | 767.00% | Weak |
| Net Margin | 30.88% | 2573.00% | Weak |
| Debt/Equity | 12.09 | -36.95 (disorted) | Distorted |
| Current Ratio | 0.35 | 37.96 | Weak Liquidity |
| ROA | 5.34% | 257.00% | Weak |
AMT outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews American Tower Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
25.18%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
41.50%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
33.12%
Industry Style: Income, Inflation Hedge, REIT
High Growth