American Tower logged a 0.5% change during today's evening session, and is now trading at a price of $191.24 per share.
American Tower returned losses of -27.0% 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 -40.0%. As of April 2023, the company's 50-day average price was $189.96. 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 not offered a dividend during the last year.
Exceptional Profitability Overshadowed by Excessive Leverage:
| 2020-02-25 | 2021-02-25 | 2022-02-25 | 2023-02-23 | |
|---|---|---|---|---|
| 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 Expense (MM) | -$767 | -$754 | -$830 | -$1,065 |
| Depreciation & Amort. (MM) | -$1,778 | -$1,882 | -$2,333 | -$3,355 |
| Earnings Per Share | $4.24 | $3.79 | $5.62 | $2.99 |
| EPS Growth | n/a | -10.61% | 48.28% | -46.8% |
| Diluted Shares (MM) | 446 | 446 | 457 | 466 |
| Free Cash Flow (MM) | $4,744 | $4,913 | $6,197 | $5,570 |
| 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 | 5.09 | 6.56 | 7.55 | 5.95 |
American Tower has growing revenues and increasing reinvestment in the business, strong margins with a negative growth trend, and a steady stream of strong cash flows. 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 63.5, compared to an average of 24.81 for the Real Estate sector. Based on its EPS guidance of $4.98, the company has a forward P/E ratio of 38.1. The 3.3% compound average growth rate of American Tower's historical and projected earnings per share yields a PEG ratio of 19.43. 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 15.98 is higher than the sector average of 2.24. The company's shares are currently trading 471.4% above their Graham number.
Analysts Give American Tower an Average Rating of Buy:
The 17 analysts following American Tower have set target prices ranging from $211.0 to $271.0 per share, for an average of $234.71 with a buy rating. As of April 2023, the company is trading -19.1% away from its average target price, indicating that there is an analyst consensus of some upside potential.
American Tower has a very low short interest because 1.1% of the company's shares are sold short. Institutions own 92.8% 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 Vanguard Group Inc, whose 13% stake in the company is worth $11,791,569,966.
