American Tower logged a 2.0% change during today's morning session, and is now trading at a price of $201.8 per share.
American Tower returned gains of 9.9% last year, with its stock price reaching a high of $243.56 and a low of $170.46. Over the same period, the stock underperformed the S&P 500 index by -26.0%. The company's 50-day average price was $226.1. 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 over 224,000 communications sites and a highly interconnected footprint of U. Based in Boston, MA, the Large-Cap Real Estate company has 5,643 full time employees. American Tower has offered a 3.3% dividend yield over the last 12 months.
The Firm Has a Highly Leveraged Balance Sheet:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $7,440 | $7,580 | $8,042 | $9,357 | $10,711 | $11,144 |
| Operating Margins | 26% | 35% | 36% | 33% | 22% | 27% |
| Net Margins | 17% | 25% | 21% | 27% | 16% | 12% |
| Net Income (M) | $1,236 | $1,888 | $1,691 | $2,568 | $1,697 | $1,367 |
| Diluted Shares (M) | 443 | 446 | 446 | 453 | 463 | 467 |
| Earnings Per Share | $2.77 | $4.24 | $3.79 | $5.66 | $3.82 | $3.18 |
| EPS Growth | n/a | 53.07% | -10.61% | 49.34% | -32.51% | -16.75% |
| Avg. Price | $130.43 | $185.86 | $224.49 | $245.96 | $238.46 | $201.8 |
| P/E Ratio | 46.75 | 43.53 | 58.92 | 43.23 | 62.26 | 63.46 |
| Free Cash Flow (M) | $2,835 | $2,761 | $2,850 | $3,443 | $1,823 | $2,924 |
| CAPEX (M) | $913 | $991 | $1,032 | $1,377 | $1,874 | $1,798 |
| EV / EBITDA | 18.6 | 22.75 | 26.45 | 26.72 | 24.68 | 20.9 |
| Total Debt (M) | $18,405 | $21,127 | $28,498 | $38,686 | $34,156 | $35,734 |
| Net Debt / EBITDA | 4.28 | 4.39 | 5.61 | 6.72 | 5.63 | 5.52 |
| Current Ratio | 0.51 | 0.47 | 0.79 | 0.41 | 0.44 | 0.51 |
American Tower has growing revenues and increasing reinvestment in the business, positive EPS growth, and generally positive cash flows. However, the firm suffers from not enough current assets to cover current liabilities because its current ratio is 0.51 and a highly leveraged balance sheet. Finally, we note that American Tower has decent operating margins with a stable trend.
American Tower's Valuation Is in Line With Its Sector Averages:
American Tower has a trailing twelve month P/E ratio of 54.4, compared to an average of 31.12 for the Real Estate sector. Based on its EPS guidance of $6.79, the company has a forward P/E ratio of 33.3. The 13.7% compound average growth rate of American Tower's historical and projected earnings per share yields a PEG ratio of 3.98. 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 25.9 is higher than the sector average of 2.15. The company's shares are currently trading 695.7% below their Graham number. Ultimately, American Tower's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.
American Tower Has an Average Rating of Buy:
The 18 analysts following American Tower have set target prices ranging from $219.0 to $260.0 per share, for an average of $241.17 with a buy rating. The company is trading -16.3% 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 1.2% of the company's shares are sold short. Institutions own 94.1% of the company's shares, and the insider ownership rate stands at 0.13%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 13% stake in the company is worth $12,620,842,401.
