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American Tower (AMT)
NYSE:AMT
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American Tower
(NYSE:AMT)73Outperform
Positive Factors
Data Center Demand
Data center demand remains strong with record leasing and revenue growth expected to accelerate.
Diversified Portfolio
AMT has a diversified global portfolio with a multi-year growth runway and is moving past headwinds, including Sprint churn.
Negative Factors
Leasing Expectations
2025 U.S leasing of $165-170 million missed estimates of $183 million.
American Tower (AMT) vs. S&P 500 (SPY)
Market Cap
$99.24B
Dividend Yield3.05%
Average Volume (3M)2.31M
Price to Earnings (P/E)44.1
Beta (1Y)0.62
Revenue Growth-3.05%
EPS Growth51.74%
CountryUS
Employees5,643
SectorReal Estate
Sector Strength72
IndustryREITs
Share Statistics
EPS (TTM)4.82
Shares Outstanding467,457,240
10 Day Avg. Volume3,034,068
30 Day Avg. Volume2,314,477
Financial Highlights & Ratios
PEG Ratio0.85
Price to Book (P/B)N/A
Price to Sales (P/S)9.80
Price to Cash Flow (P/CF)20.70
P/FCF Ratio22.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$220.85Price Target Upside4.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
American Tower Business Overview & Revenue Model
Company DescriptionAmerican Tower Corporation (AMT) is a leading independent owner, operator, and developer of wireless and broadcast communications real estate. Headquartered in Boston, Massachusetts, the company operates a vast portfolio of wireless and broadcast towers across the Americas, Africa, Europe, and Asia. American Tower provides the infrastructure necessary for wireless communications, offering critical support for mobile networks, broadcast services, and other wireless communications technologies.
How the Company Makes MoneyAmerican Tower primarily makes money by leasing space on its communications sites to wireless service providers, radio and television broadcast companies, wireless data providers, government agencies, and municipalities. The company enters into long-term contracts with these tenants, providing stable and predictable revenue streams. Additionally, American Tower offers managed rooftop and indoor antenna infrastructure services. The company benefits from the growing demand for mobile data, the expansion of 5G networks, and the increasing need for wireless infrastructure, which drive the demand for its tower space. Strategic partnerships with major telecommunications companies further bolster its revenue, as these partnerships often involve long-term agreements and shared investments in infrastructure development.
American Tower Financial Statement Overview
Summary
American Tower demonstrates solid revenue growth and cash flow generation, but faces challenges with declining profit margins and high leverage. The company needs to manage operational costs and debt levels to improve financial stability. Despite these challenges, the strong cash flow provides a buffer against economic fluctuations.Income Statement
American Tower has shown consistent revenue growth with a notable increase of 38% from 2019 to 2023. Gross Profit Margin remains strong, consistently near 100% due to low cost of revenue. However, Net Profit Margin decreased from 24.9% in 2019 to 13.3% in 2023, indicating rising expenses relative to revenue. The EBIT and EBITDA margins are healthy, but the decline in Net Income in 2023 suggests operational cost management needs attention.78
Positive
Balance Sheet
The company maintains a high Debt-to-Equity ratio, increasing from 6.1 in 2019 to 11.2 in 2023, indicating significant leverage which poses financial risk. ROE is declining, from 37.3% in 2019 to 35.3% in 2023, reflecting reduced profitability on equity. The Equity Ratio has decreased, showing less reliance on equity financing as total assets grew.65
Positive
Cash Flow
Operating Cash Flow has grown by 25.8% from 2019 to 2023, supporting strong cash generation capabilities. The Free Cash Flow to Net Income ratio is robust, reflecting efficient cash conversion from net income. However, Free Cash Flow growth has slowed in recent years, indicating potential capital expenditure pressures.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 10.23B | 10.13B | 11.14B | 10.71B | 9.36B | 8.04B | Gross Profit |
| 7.15B | 10.13B | 7.88B | 7.45B | 6.67B | 5.81B | EBIT |
| 3.62B | 4.52B | 3.02B | 2.35B | 3.13B | 2.89B | EBITDA |
| 6.00B | 7.15B | 6.01B | 6.46B | 5.88B | 5.00B | Net Income Common Stockholders |
| 2.79B | 2.25B | 1.48B | 1.77B | 2.57B | 1.69B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.00B | 2.00B | 1.97B | 2.03B | 1.95B | 1.75B | Total Assets |
| 61.08B | 61.08B | 66.03B | 67.19B | 69.89B | 47.23B | Total Debt |
| 43.95B | 43.95B | 47.15B | 47.05B | 52.01B | 36.71B | Net Debt |
| 41.95B | 41.95B | 45.18B | 45.02B | 50.06B | 34.97B | Total Liabilities |
| 51.43B | 51.43B | 55.16B | 54.79B | 60.82B | 42.45B | Stockholders Equity |
| 3.38B | 3.38B | 4.20B | 5.57B | 5.08B | 4.09B |
| Cash Flow | Free Cash Flow | ||||
| 2.82B | 3.70B | 2.92B | 1.82B | 3.44B | 2.85B | Operating Cash Flow |
| 4.35B | 5.29B | 4.72B | 3.70B | 4.82B | 3.88B | Investing Cash Flow |
| -12.09B | 410.60M | -1.70B | -2.36B | -20.69B | -4.78B | Financing Cash Flow |
| 8.08B | -5.45B | -3.10B | -1.42B | 16.42B | 1.22B |
American Tower Technical Analysis
Positive
212.29
Price Trends
189.32
Positive
197.33
Positive
203.88
Positive
Market Momentum
5.82
Negative
70.29
Negative
76.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMT, the sentiment is Positive. The current price of 212.29 is above the 20-day moving average (MA) of 197.69, above the 50-day MA of 189.32, and above the 200-day MA of 203.88, indicating a bullish trend. The MACD of 5.82 indicates Negative momentum. The RSI at 70.29 is Negative, neither overbought nor oversold. The STOCH value of 76.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMT.
American Tower Risk Analysis
American Tower disclosed 23 risk factors in its most recent earnings report. American Tower reported the most risks in the “Ability to Sell” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
American Tower Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $49.96B | 92.03 | 2.98% | 3.27% | 1.42% | -42.07% | |
73 Outperform | $99.24B | 44.07 | 91.38% | 3.05% | -3.05% | 51.74% | |
73 Outperform | $23.54B | 31.54 | -14.67% | 1.75% | -1.18% | 50.21% | |
70 Outperform | $84.86B | 102.52 | 6.27% | 2.03% | 6.84% | -17.14% | |
63 Neutral | $42.47B | 34.67 | 20.49% | 6.40% | -6.76% | -21.14% | |
61 Neutral | $4.91B | 18.99 | -3.12% | 7.77% | 6.71% | -19.69% | |
56 Neutral | $24.79B | 138.74 | -35.81% | 3.23% | 12.22% | -2.68% |
* Real Estate Sector Average
Performance Comparison
AMT
American Tower
212.29
12.31
6.16%
CCI
Crown Castle
97.73
-8.06
-7.62%
DLR
Digital Realty
149.17
8.09
5.73%
EQIX
Equinix
859.52
-15.97
-1.82%
IRM
Iron Mountain
84.38
5.93
7.56%
SBAC
SBA Communications
223.73
4.06
1.85%
American Tower Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: 10.57% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment with strong performance in 2024 and a positive outlook for 2025, particularly in the data center business and cost management. However, challenges such as Sprint churn, emerging markets issues, and FX and interest rate volatility were highlighted as areas of concern.Highlights
Strong 2024 Performance
American Tower reported a strong close to 2024 with property revenue growth of nearly 1% and 3% on an FX-neutral basis. Adjusted EBITDA growth was approximately 2% and over 4% on an FX-neutral basis.
Data Center Business Success
CoreSite data center business delivered a tremendous quarter with fourth-quarter revenue growth of nearly 10%, reinforcing demand and pricing durability for interconnection-centric, retail-oriented colocation.
Cost Management and Efficiency
Cash SG&A, excluding bad debt, reduced by approximately $35 million in 2024 compared to 2023, with further reductions expected in 2025.
Positive Outlook for 2025
The company expects total company organic tenant billings growth of approximately 5% in 2025 and a continuation of solid performance in the U.S. data center business, growing at nearly 12% at the midpoint.
Lowlights
Sprint Churn Impact
The final tranche of Sprint churn impacted organic tenant billings growth, expected to weigh on growth for the first three quarters of 2025.
Emerging Markets Challenges
The company is reducing emerging market discretionary CapEx, with a focus on developed market platforms due to challenges in emerging markets.
FX and Interest Rate Volatility
The company faced FX devaluation and interest rate volatility, impacting growth, with net interest headwinds of $80 million, a roughly 1.7% negative impact to growth.
Company Guidance
In the fourth quarter and full-year 2024 earnings call, American Tower provided guidance that emphasizes strategic priorities and financial targets. The company aims to maintain a leverage target of 5 times, supported by a $35 million reduction in cash SG&A expenses in 2024 compared to 2023, achieved through efficiency initiatives. American Tower anticipates organic tenant billings growth of approximately 5% globally for 2025, with specific expectations of over 4.3% in the U.S. and Canada. The company plans $1.7 billion in capital deployment, focusing 80% on developed markets, including over $600 million for data center development. For 2025, American Tower forecasts attributable AFFO per share growth of over 4% and cash adjusted EBITDA growth of approximately 1%, or over 3% on an FX-neutral basis. The company remains vigilant about global risks such as FX and interest rate volatility, while pursuing a disciplined capital allocation strategy to prioritize higher quality earnings and sustained growth.American Tower Corporate Events
Executive/Board Changes
American Tower Reviews Executive Compensation for 2025
Neutral
Mar 5, 2025
On February 27, 2025, American Tower Corporation’s Compensation Committee reviewed the compensation arrangements for its executive officers for the year ending December 31, 2025. The committee set base salaries and cash bonus targets for the CEO, CFO, and other top executives, with potential bonuses tied to the achievement of company and individual goals. Sanjay Goel, the Executive Vice President and President of Asia-Pacific, will leave the company on March 31, 2025, and will receive prorated compensation for his service in 2025.
Executive/Board ChangesBusiness Operations and Strategy
American Tower Appoints Rajesh Kalathur to Board
Positive
Feb 5, 2025
On February 5, 2025, American Tower Corporation announced the election of Rajesh Kalathur to its Board of Directors and Audit Committee. Kalathur, currently serving as President of John Deere Financial and CIO of Deere & Company, brings over 27 years of experience in finance, IT, operations, and marketing to the role. His appointment is expected to bolster American Tower’s global business strategy and market leadership, potentially enhancing shareholder value.
Executive/Board ChangesBusiness Operations and Strategy
American Tower Announces Key Executive Appointments
Positive
Jan 7, 2025
American Tower Corporation announced that Eugene M. Noel will become Executive Vice President and Chief Operating Officer, a newly created global position, effective January 13, 2025. This move aligns with the company’s strategic priorities to enhance operational efficiency and customer service. Additionally, Richard Rossi will succeed Noel as Executive Vice President and President of the U.S. Tower division. These leadership changes are expected to bolster American Tower’s industry-leading customer service by implementing new technologies and operational capabilities.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.