What Are the Fundamentals Of AMT?

American Tower logged a 2.0% change during today's morning session, and is now trading at a price of $222.8 per share. The S&P 500 index moved 0.9% and the Nasdaq posted a 1.7% change. AMT's trading volume is 237,112 compared to the stock's average volume of 2,027,356.

American Tower shares moved -17.4% over the last 52 weeks, with a high of $282.47 and a low of $178.17. During this time, the stock basically tracked the performance of the S&P 500. As of January 2022, the company's 50-day average price is $213.0.

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 2.6% dividend yield over the last 12 months.

Overview of the Company's Heavy Use of Leverage:

2019-12-31 2020-12-31 2021-12-31
Revenue (MM) $7,580 $8,042 $9,357
Revenue Growth n/a 6.08% 16.36%
Operating Margins 35.5% 38.9% 35.6%
Operating Margins Growth n/a 9.58% -8.48%
Net Margins 24.9% 21.02% 27.44%
Net Margins Growth n/a -15.58% 30.54%
Earnings Per Share $4.24 $3.79 $5.66
EPS Growth n/a -10.61% 49.34%
Free Cash Flow (MM) $2,761 $2,850 $3,443
FCF Growth n/a 3.2% 20.83%
Capital Expenditures (MM) -$991 -$1,032 -$1,377
Net Debt / EBITDA 5.09 5.59 6.16

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 35.0 and, based on its EPS guidance of 4.63, an expected P/E ratio of 48.1.

American Tower's price to book (P/B) ratio is 16.5 compared to its sector average of 2.39. The company is likley overvalued in terms of its net tangible assets. The company's shares are currently trading 498.8% above their fair value as expressed by Benjamin Graham's formula:

√(22.5 * 3-year average EPS * book value per share) = √(22.5 * 4.56 * 13.492) = $37.21

American Tower Is the Subject of Mixed Market Indicators:

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 the current price of $222.8, AMT is trading -10.46% away from its average analyst target price of $248.82 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% stake in the company worth approximately $13,528,564,124.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.