American Tower (AMT) AI Stock Analysis

• Market Cap: $90.14B
• Dividend Yield: 3.45%
• Average Volume (3M): 2.70M
• Price to Earnings (P/E): 69.9
• Beta (1Y): 0.18
• Revenue Growth: -9.52%
• EPS Growth: -48.20%
• Country: US
• Employees: 4,691
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Specialty
• EPS (TTM): 0.78
• Shares Outstanding: 468,251,220
• 10 Day Avg. Volume: 3,443,941
• 30 Day Avg. Volume: 2,699,230
• PEG Ratio: 0.73
• Price to Book (P/B): 25.33
• Price to Sales (P/S): 8.46
• P/FCF Ratio: 23.15
• Enterprise Value/Market Cap: 1.70
• Enterprise Value/Revenue: 14.95
• Enterprise Value/Gross Profit: 20.10
• Enterprise Value/Ebitda: 22.92
• 1Y Price Target: $245.80
• Price Target Upside: 26.23% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

• Rating: 58 Neutral
• Price Target: $203.00 ▲(4.25% Upside)

American Tower's overall stock score reflects a mix of strong financial performance and robust earnings outlook, tempered by technical weakness and valuation concerns. The legal dispute with AT&T Mexico adds uncertainty, while the company's strategic moves in the data center segment offer growth potential. Investors should weigh the high leverage and current market conditions when considering this stock.

Positive Factors

Revenue Stability

The company's revenue model is built on long-term contracts, providing a stable and recurring income stream, crucial for financial stability and planning.

Data Center Growth

The strong performance of CoreSite, driven by AI-related demand, indicates robust growth potential in the data center segment, enhancing diversification and future revenue.

Strategic Board Appointment

The appointment of Eugene Reilly, with his extensive real estate experience, is expected to strengthen market leadership and optimize the global portfolio, benefiting long-term strategic goals.

Negative Factors

High Leverage

High leverage poses a risk to financial flexibility, especially amid economic uncertainties, potentially impacting the company's ability to invest in growth opportunities.

Legal Dispute Impact

The ongoing legal dispute with AT&T Mexico introduces revenue uncertainty and could lead to financial strain if unresolved, affecting long-term revenue stability.

Profitability Decline

The significant drop in net profit margin indicates declining profitability, which could affect the company's ability to reinvest in its operations and sustain long-term growth.

American Tower Business Overview & Revenue Model

Company Description

American Tower Corporation (AMT) is a leading independent owner and operator of wireless and broadcast communications real estate. The company operates in the telecommunications sector, primarily focusing on providing infrastructure for mobile communications, including cell towers, rooftop sites, and other related facilities. With a global presence, AMT supports the growing demand for wireless communication services by offering a range of solutions that enable carriers and service providers to enhance their network coverage and capacity.

How the Company Makes Money

American Tower generates revenue primarily through leasing agreements with wireless service providers, which pay for the right to install their equipment on the company's towers and other structures. The company's revenue model is built on long-term contracts that often span multiple years, providing a stable and recurring income stream. Key revenue streams include tower leasing, where clients pay monthly rents for space on the towers; service contracts for maintenance and upgrades; and revenues from international markets as AMT has expanded its presence in various countries. Significant partnerships with major telecommunications companies, such as AT&T, Verizon, and others, contribute to its earnings by ensuring consistent demand for its infrastructure services. Additionally, the company's focus on acquiring new sites and expanding its portfolio enhances its revenue potential over time.

American Tower Financial Statement Overview

Summary

American Tower exhibits stable revenue growth and strong operational margins, although net profitability has declined recently. The balance sheet reflects high leverage, which could be a concern amidst economic uncertainties. Cash flows are robust, with consistent free cash flow generation. Overall, the company maintains a solid financial position with a need to address its leverage levels.

Income Statement

The TTM revenue shows a modest growth of 1.31% compared to the previous year, indicating stable income generation. Gross profit margin is robust at 74.39%, demonstrating efficient cost management. However, the net profit margin for TTM has decreased to 12.60% from 22.26% in the previous annual period, highlighting a significant drop in profitability. EBITDA and EBIT margins remain strong at 65.23% and 45.54% respectively, indicating solid operational performance.

Balance Sheet

The company has a high debt-to-equity ratio of 12.18, which poses a potential risk due to high leverage. The equity ratio is low at 5.82%, reflecting limited shareholder equity relative to total assets. Return on equity has decreased to 34.81% from 66.67% in the previous year, but remains strong, indicating high efficiency in generating profits from shareholders' equity.

Cash Flow

The free cash flow shows a slight increase of 1.10% in the TTM, suggesting stable cash generation. Operating cash flow to net income ratio is strong at 4.06, indicating healthy cash generation relative to net income. The free cash flow to net income ratio is 2.89, which also signifies effective cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.26B	10.13B	10.01B	9.65B	9.36B	8.04B
Gross Profit	7.63B	7.55B	7.45B	7.08B	6.67B	5.81B
EBITDA	6.69B	7.15B	6.00B	6.58B	6.03B	4.50B
Net Income	1.29B	2.25B	1.48B	1.77B	2.57B	1.69B
Balance Sheet
Total Assets	63.75B	61.08B	66.03B	67.19B	69.89B	47.23B
Cash, Cash Equivalents and Short-Term Investments	2.08B	2.00B	1.75B	2.03B	1.95B	1.75B
Total Debt	45.21B	43.95B	46.31B	47.05B	52.01B	36.71B
Total Liabilities	53.28B	51.43B	55.16B	54.79B	60.82B	42.45B
Stockholders Equity	3.71B	3.38B	4.20B	5.57B	5.08B	4.09B
Cash Flow
Free Cash Flow	3.74B	3.70B	2.92B	1.82B	3.44B	2.85B
Operating Cash Flow	5.24B	5.29B	4.72B	3.70B	4.82B	3.88B
Investing Cash Flow	205.20M	410.60M	-1.70B	-2.36B	-20.69B	-4.78B
Financing Cash Flow	-5.90B	-5.45B	-3.10B	-1.42B	16.42B	1.22B

American Tower Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 194.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMT, the sentiment is Negative. The current price of 194.73 is below the 20-day moving average (MA) of 200.85, below the 50-day MA of 210.12, and below the 200-day MA of 204.28, indicating a bearish trend. The MACD of -4.55 indicates Positive momentum. The RSI at 38.47 is Neutral, neither overbought nor oversold. The STOCH value of 40.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMT.

American Tower Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EQIX	74 Outperform	77.48B	77.50	7.06%	2.32%	5.74%	-6.58%
IRM	63 Neutral	29.48B	727.02	-5.39%	3.06%	10.72%	-81.96%
SBAC	62 Neutral	21.27B	24.34	-17.79%	2.18%	1.82%	71.39%
WY	62 Neutral	17.91B	64.60	2.93%	3.34%	-6.57%	-62.32%
AMT	58 Neutral	$90.14B	69.88	66.09%	3.45%	-9.52%	-48.20%
CCI	50 Neutral	40.75B	-11.43	335.60%	5.60%	-17.95%	-398.78%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

American Tower Corporate Events

American Tower Faces Legal Dispute with AT&T Mexico

On September 3, 2025, Steven O. Vondran, CEO of American Tower Corporation, revealed at the Citi 2025 Global TMT Conference that the company is in a legal dispute with AT&T Mexico, which has withheld tower rents since early 2025, impacting approximately $300 million of tenant revenue from 2024. The company has set aside $10 million in reserves for the second quarter of 2025 and may incur more if the situation persists, though it remains confident in its legal position. Additionally, Vondran discussed the company’s relationship with DISH Network, noting that DISH contributes around 2% of American Tower’s total annual property revenue, under a Master Lease Agreement valid until 2036.

American Tower Appoints Eugene Reilly to Board

On August 22, 2025, American Tower Corporation announced the election of Eugene F. Reilly to its Board of Directors and Compensation Committee. Reilly, who has extensive experience in real property investment and management, previously held significant roles at Prologis, Inc., including Vice Chairman and Chief Investment Officer. His appointment is expected to enhance American Tower’s market leadership and provide valuable insights for optimizing its global portfolio, ultimately benefiting shareholders.