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.
