American Tower logged a 0.1% change during today's evening session, and is now trading at a price of $211.0 per share.
Over the last year, American Tower logged a 1.0% change, 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 -23.1%. As of April 2023, the company's 50-day average price was $187.86. 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 3.0% 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 | $11,062 |
| Revenue Growth | n/a | 1.88% | 6.08% | 16.36% | 14.47% | 3.28% |
| Operating Margins | 26% | 35% | 36% | 33% | 22% | 23% |
| Net Margins | 17% | 25% | 21% | 27% | 16% | 6% |
| Net Income (MM) | $1,265 | $1,917 | $1,692 | $2,568 | $1,766 | $715 |
| Net Interest Expense (MM) | $24 | $814 | $794 | $871 | $1,136 | $1,351 |
| Depreciation & Amort. (MM) | $2,111 | $1,778 | $1,882 | $2,333 | $1,553 | $3,136 |
| Earnings Per Share | $2.77 | $4.24 | $3.79 | $5.66 | $3.82 | $1.51 |
| EPS Growth | n/a | 53.07% | -10.61% | 49.34% | -32.51% | -60.47% |
| Diluted Shares (MM) | 443 | 446 | 446 | 453 | 463 | 480 |
| Free Cash Flow (MM) | $2,835 | $2,761 | $2,850 | $3,443 | $1,823 | $2,834 |
| Capital Expenditures (MM) | $913 | $991 | $1,032 | $1,377 | $1,874 | $1,932 |
| Current Ratio | 0.51 | 0.47 | 0.79 | 0.41 | 0.44 | 0.56 |
| Total Debt (MM) | $21,160 | $24,055 | $28,791 | $43,254 | $38,670 | $38,600 |
| Net Debt / EBITDA | 4.97 | 5.05 | 5.67 | 7.56 | 9.38 | 6.47 |
American Tower has declining EPS growth, irregular cash flows, and a highly leveraged balance sheet. On the other hand, the company has growing revenues and increasing reinvestment in the business working in its favor. Furthermore, American Tower has average net margins with a stable trend.
American Tower Has Elevated P/B and P/E Ratios:
American Tower has a trailing twelve month P/E ratio of 125.2, compared to an average of 25.55 for the Real Estate sector. Based on its EPS guidance of $4.9, the company has a forward P/E ratio of 38.3. The 8.5% compound average growth rate of American Tower's historical and projected earnings per share yields a PEG ratio of 14.75. 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 21.7 is higher than the sector average of 2.1. The company's shares are currently trading 1077.5% above their Graham number.
There's an Analyst Consensus of Some Upside Potential for American Tower:
The 17 analysts following American Tower have set target prices ranging from $183.0 to $259.0 per share, for an average of $222.35 with a buy rating. As of April 2023, the company is trading -15.5% 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 1.5% of the company's shares are sold short. Institutions own 93.5% of the company's shares, and the insider ownership rate stands at 0.16%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 13% stake in the company is worth $12,856,353,013.
