American Tower logged a -0.1% change during today's morning session, and is now trading at a price of $188.38 per share.
American Tower returned losses of -29.1% last year, with its stock price reaching a high of $282.47 and a low of $178.17. Over the same period, the stock underperformed the S&P 500 index by -32.0%. As of April 2023, the company's 50-day average price was $197.76. 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 nearly 226,000 communications sites and a highly interconnected footprint of U. Based in Boston, MA, the large-cap Real Estate company has 6,391 full time employees. American Tower has offered a 3.2% dividend yield over the last 12 months.
Exceptional Profitability Overshadowed by Excessive Leverage:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $7,580 | $8,042 | $9,357 | $10,711 |
| Operating Margins | 35.5% | 35.9% | 33.5% | 22.0% |
| Net Margins | 24.9% | 21.02% | 27.44% | 16.49% |
| Net Income (MM) | $1,888 | $1,691 | $2,568 | $1,766 |
| Net Interest Income | -$767,400 | -$753,800 | -$830,500 | -$1,064,900 |
| Depreciation & Amort. | -$1,795,800 | -$1,871,400 | -$2,332,600 | -$3,355,100 |
| Earnings Per Share | $4.24 | $3.79 | $5.66 | $2.98 |
| EPS Growth | n/a | -10.61% | 49.34% | -47.35% |
| Diluted Shares (MM) | 446 | 446 | 453 | 466 |
| Free Cash Flow (MM) | $2,761 | $2,850 | $3,443 | $1,823 |
| Capital Expenditures (MM) | -$991 | -$1,032 | -$1,377 | -$1,874 |
| Net Current Assets (MM) | -$33,661 | -$39,547 | -$57,089 | -$51,164 |
| Current Ratio | 0.47 | 0.79 | 0.41 | 0.44 |
| Long Term Debt (MM) | $21,127 | $28,498 | $38,686 | $34,156 |
| Net Debt / EBITDA | 5.18 | 6.32 | 7.01 | 6.03 |
American Tower has growing revenues and increasing reinvestment in the business, strong margins with a negative growth trend, and consistent free cash flow. However, the firm suffers from declining EPS growth and a highly leveraged balance sheet.
American Tower's P/B and P/E Ratios Are Higher Than Average:
American Tower has a trailing twelve month P/E ratio of 66.4, compared to an average of 24.81 for the Real Estate sector. Based on its EPS guidance of $4.92, the company has a forward P/E ratio of 40.2. The 3.0% compound average growth rate of American Tower's historical and projected earnings per share yields a PEG ratio of 21.98. This suggests that these shares are overvalued. Furthermore, American Tower is likely overvalued compared to the book value of its equity, since its P/B ratio of 16.24 is higher than the sector average of 2.24. The company's shares are currently trading 471.0% above their Graham number.
There's an Analyst Consensus of Strong Upside Potential for American Tower:
The 15 analysts following American Tower have set target prices ranging from $213.0 to $271.0 per share, for an average of $241.13 with a buy rating. As of April 2023, the company is trading -18.0% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
American Tower has a very low short interest because 1.1% of the company's shares are sold short. Institutions own 93.2% of the company's shares, and the insider ownership rate stands at 0.15%, suggesting a small amount of insider investors. The largest shareholder is the Vanguard Group, Inc., whose 13% stake in the company is worth $11,614,720,846.
