What Our Analysts Know About American Tower

Now trading at a price of $184.08, American Tower has moved -0.7% so far today.

American Tower returned losses of -8.0% last year, with its stock price reaching a high of $235.57 and a low of $154.58. Over the same period, the stock underperformed the S&P 500 index by -25.0%. As of April 2023, the company's 50-day average price was $171.39. 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 225,000 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 3.4% dividend yield over the last 12 months.

Growing Revenues With Increasing Reinvestment in the Business:

2018 2019 2020 2021 2022 2023
Revenue (MM) $7,440 $7,580 $8,042 $9,357 $10,711 $10,915
Operating Margins 26.0% 35.0% 36.0% 33.0% 22.0% 23.0%
Net Margins 17.0% 25.0% 21.0% 27.0% 16.0% 9.0%
Net Income (MM) $1,265 $1,917 $1,692 $2,568 $1,766 $967
Net Interest Expense (MM) $24 $814 $794 $871 $1,136 $1,286
Depreciation & Amort. (MM) $2,111 $1,778 $1,882 $2,333 $1,553 $3,272
Earnings Per Share $2.77 $4.24 $3.79 $5.66 $3.82 $2.05
Diluted Shares (MM) 443 446 446 453 463 480
Free Cash Flow (MM) $2,835 $2,761 $2,850 $3,443 $1,823 $2,397
Capital Expenditures (MM) $913 $991 $1,032 $1,377 $1,874 $2,000
Net Current Assets (MM) -$23,721 -$33,661 -$39,547 -$57,089 -$51,164 -$51,190
Long Term Debt (MM) $18,405 $21,127 $28,498 $38,686 $34,156 $35,590
Net Debt / EBITDA 4.97 5.05 5.67 7.56 9.38 6.38

The Market May Be Overvaluing American Tower's Earnings and Assets:

American Tower has a trailing twelve month P/E ratio of 115.0, compared to an average of 24.81 for the Real Estate sector. Based on its EPS guidance of $4.82, the company has a forward P/E ratio of 35.6. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is -4.9%. On this basis, the company's PEG ratio is -23.51, which indicates that its shares are overpriced. Furthermore, American Tower is likely overvalued compared to the book value of its equity, since its P/B ratio of 18.93 is higher than the sector average of 2.24. The company's shares are currently trading 725.8% above their Graham number.

American Tower Has an Average Rating of Buy:

The 16 analysts following American Tower have set target prices ranging from $169.0 to $271.0 per share, for an average of $209.13 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 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 $11,179,848,746.

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.