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:
|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|
|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|
|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.