American Tower logged a -0.2% change during today's afternoon session, and is now trading at a price of $210.54 per share. The S&P 500 index moved -0.4% and the Nasdaq posted a -1.4% change. AMT's trading volume is 655,608 compared to the stock's average volume of 2,115,987.
Over the last 52 weeks, the stock moved -26.4%, with a high of $294.4 and a low of $178.17. During this time, the stock lagged the S&P 500 index by -6.7%. American Tower Corporation, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of approximately 219,000 communications sites. The large-cap Real Estate company has 6,378 full time employees and is based in Boston, MA. American Tower has returned a 2.7% dividend yield over the last 12 months.
AMT's Strong Earnings Come at the Price of Excessive Leverage:
| 2018-12-31 | 2019-12-31 | 2020-12-31 | 2021-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $7,440 | $7,580 | $8,042 | $9,357 |
| Revenue Growth | n/a | 1.9% | 6.1% | 16.4% |
| Operating Margins | 25.6% | 35.47% | 38.89% | 35.57% |
| Operating Margins Growth | n/a | 38.55% | 9.64% | -8.54% |
| Net Margins | 16.62% | 24.9% | 21.02% | 27.44% |
| Net Margins Growth | n/a | 49.82% | -15.58% | 30.54% |
| Earnings Per Share | $2.77 | $4.24 | $3.79 | $5.66 |
| EPS Growth | n/a | 53.07% | -10.61% | 49.34% |
| Free Cash Flow (MM) | $2,835 | $2,761 | $2,850 | $3,443 |
| FCF Growth | n/a | -2.6% | 3.2% | 20.83% |
| Capital Expenditures (MM) | $-913 | $-991 | $-1,032 | $-1,377 |
| Net Debt / EBITDA | 4.87 | 5.09 | 5.59 | 6.16 |
Basic Valuation Metrics Show American tower Is Overvalued:
Compared to the Real Estate sector's average of 27.16, American Tower has a trailing twelve month price to earnings (P/E) ratio of 33.5 and, based on its Eps guidance of 4.64, an expected P/E ratio of 45.4.
The firm's price to earnings growth (PEG) is 223.4, which indicates that it is overvalued in terms of its expected rate of earnings growth. . American Tower's price to book (P/B) ratio is 15.6 compared to its sector average of 2.39.
As of the date of publication, the company is trading 381.8% above its fair value as expressed by Benjamin Graham's formula. We calculate the Graham number as follows:
√(22.5 * TTM earnings per share * book value per share) = √(22.5 * 6.29 * 13.492) = $43.7
There is Mixed market sentiment About American Tower:
17 analysts are following American Tower and have set target prices ranging from $215 to $280 per share. On average, they have given the company a rating of buy. At today's prices, AMT is trading -15.63% away from its average analyst target price of $249.53 per share, implying an analyst consensus of some upside potential for the stock. The company has a very low short interest since 0.9% of the company's shares are tied to short positions. Institutions own 93.0% of American Tower's shares, while the insider ownership rate stands at 0.2%. The biggest shareholder is the Vanguard Group, Inc. with a 13.04% stake in the company worth approximately $12,784,128,190.00.
