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Fundamental analysis: American Tower Corporation (AMT)

Awarener score: 5.8

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Modest), the business stability (Excellent) and growth (Average), and the company's inclination to return cash to the stockholders (Average).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 7.5

  • Business has been growing at a low pace. It's been similar to peer companies.
  • American Tower Corporation business trend stability is excellent. The higher the stability, the lower the risk. It looks slightly worse than rivals.

Margins score: 9.3

  • AMT profit margins -on goods and services sold- are usually excellent. They stand slightly better than rival companies.
  • Business profit on sales tends to be huge. It's encouraging in relation to competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually huge. They remain close to average when compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be excellent in relation to total revenues. They're still slightly better than similar companies.
  • Profits -before income taxes- are usually excellent considering total sales, and remain encouraging in relation to rivals.
  • Total net profit tends to be excellent when confronted to sales. Company stands encouraging in relation to comparable firms.

Growth score: 6.1

  • American Tower Corporation profit -on goods and services sold- has been growing at a normal pace. It's been a slight improvement compared to competitors.
  • In recent years, earnings -on operations- have been growing at a low step, which has been slightly worse than comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a good pace, which compares encouraging in relation to peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at a normal tempo. It turns to be rather normal in relation to similar stocks.
  • In past years, profits -before income taxes- grew at a good speed. It was somewhat worse than rivals.
  • In the previous years, growth on total net profit has been average, and below average when measured against peer companies.
  • Earnings per share have grown at a normal rhythm in past years. It's been lacking compared to industry peers.

Miscellaneous score: 9.0

  • AMT managed to pay no income taxes on profits made in the past years, sometimes even got a credit. It's been slightly better than peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 8.0

  • American Tower Corporation usually gets very good returns on the resources it controls. It proves almost average when measured against peer firms.
  • The company normally gets sufficient proceeds -on the resources directly invested in the business-. They remain close to average when compared to similar companies.
  • Profitability -in relation to owned resources- is usually paramount. It ranks top tier when measured against competitors.
  • In the past, got very good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's great when measured against comparable enterprises.

Usage of Funds score: 4.9

  • AMT usually uses a large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is large. It stands great when measured against rival firms.
  • The company is usually replacing part of the property, plant, and equipment that gets old, keeping some funds for something else. It can't keep forever, which is below average when measured against industry peers.
  • In the past twelve months it paid run-of-the-mill dividends, considering the current stock price. It came somewhat worse than competitors.
  • Has somewhat increased dividend payments in the past years. Business prospects may have improved. The company has behaved rather normal in relation to similar firms.
  • The company usually uses a large portion of genuine funds generated to pay dividends. There could be some concerns on sustainability if business takes a dive. Sustainability looks somewhat better than comparable companies.
  • The company barely enlarges the pool of investors, resulting in slightly more mouths feeding on the pie of profits. It remains close to average when compared to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
  • We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 4.0

  • American Tower Corporation intangible assets (like brands and goodwill) represent a huge portion of resources controlled, according to accounting books. There could be major difficulties in liquidating them if the company ever gets in financial distress. It happens to be last-in-rank when measured against peer companies.
  • The company has lower short-term resources than short-term obligations. Unless it's part of the business model, there might be liquidity concerns. It turns to be a disappointment compared to similar firms.
  • Most resources controlled were provided for with financial debt. Creditors have more claims on the company than shareholders. Unless the company is a financial institution that takes deposits, the situation might be very risky. It remains mediocre against rival firms.
  • Most controlled resources might be only slowly turned into cash and equivalents, which is risky. It looks weak when measured against rivals.
  • For every dollar of short-term obligations, the company has less than a dollar of cash and short-term receivables. It's a disappointment compared to peer firms.
  • For every dollar of short-term obligations, the company has few cents of cash and equivalents, which is mediocre against similar enterprises.
  • Usually, sales are on a month and a half credit. It still ranks almost average when measured against peers.
  • Normally has no inventories. It comes up as impressive in relation to competitors.
  • On average, it takes approximately two months from the purchase to charging customers. It happens to be slightly better than peers.
  • On average pays suppliers before a month since the purchase. It ranks similar to industry peers.
  • The company pays its suppliers less than one month before charging its customers, so there's little money invested in working capital. It's rather normal in relation to similar companies.
  • Net interest expenses consume a significant portion of usual business earnings, but are mostly bearable. It stands somewhat better than rival firms.
  • Business earnings have usually been very low when measured against loans taken. Even significantly cutting back reinvesting in the business, it could take more than ten years to repay the obligations with current profitability. It ranks weak when measured against comparable enterprises.
  • Last twelve months revenues were non-significant in relation to fixed assets. The company must improve income to take advantage of used resources. It looks in a very weak position compared to similar firms.
  • Resource exploitation is low when yearly sales are considered, business volume must be significantly increased. This metric is normally tied to the industry where the firm belongs. It's still mediocre against peer companies.

Valuation score: 3.5

  • American Tower Corporation looks heavily expensive in relation to profits and financial position. It happens to be below average when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
  • In the past twelve months, the company neither generated nor consumed funds. Whatever funds it could generate, it reinvested in the business, which stands slightly worse than similar companies.
  • In the past years the company barely generated enough genuine funds to cover up for its business needs. Business prospects should improve to be in a better position to reward investors. It's still below average when measured against industry firms.
  • In the past twelve months, the company hasn't rewarded investors, considering both dividends and share on the pie of earnings. It came up in a weak position compared to peer ventures.
  • The company is largely indebted. It should focus on loan repayment before rewarding stockholders. It looks slightly worse than similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is very high. A lot of improvement expectations are already in the stock price, which is risky. It ranks below average when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a very large relationship. The stock price might rely more on expectations and resources controlled than on anything else. It looks in a very weak position compared to rival firms.
  • The relation between the stock price and accounting book value is extremely high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains worse than most peer firms.
  • In the past twelve months, the operating business lost a little money. It happens to be substantially worse when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a mediocre earnings power ability when measured against the current stock price and financial position. It's still in a very weak position compared to peer companies.

Total score: 6.5


AMT logos

Company at a glance: American Tower Corporation (AMT)

Sector, industry: Real Estate, REIT—Specialty

Market Cap: 103.04 billions

Revenues TTM: 10.45 billions

American Tower Corporation, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of approximately 219,000 communications sites. For more information about American Tower, please visit the "Earnings Materials" and "Investor Presentations" sections of our investor relations website at www.americantower.com.

Awarener score: 5.8

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Modest), the business stability (Excellent) and growth (Average), and the company's inclination to return cash to the stockholders (Average).