American Tower (AMT) AI Stock Analysis

• Market Cap: $98.21B
• Dividend Yield: 3.13%
• Average Volume (3M): 2.16M
• Price to Earnings (P/E): 76.1
• Beta (1Y): 0.18
• Revenue Growth: -9.52%
• EPS Growth: -48.20%
• Country: US
• Employees: 4,691
• Sector: Real Estate
• Sector Strength: 49
• Industry: REIT - Specialty
• EPS (TTM): 0.78
• Shares Outstanding: 468,251,220
• 10 Day Avg. Volume: 2,241,723
• 30 Day Avg. Volume: 2,158,235
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.56
• Enterprise Value/Revenue: 14.95
• Enterprise Value/Gross Profit: 20.10
• Enterprise Value/Ebitda: 22.92
• 1Y Price Target: $249.60
• Price Target Upside: 17.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 65 Neutral
• Price Target: $225.00 ▲(6.19% Upside)

American Tower's strong earnings call and robust cash flows are offset by high leverage and a bearish technical outlook. The high P/E ratio suggests overvaluation, but the dividend yield offers some appeal. Overall, the stock presents a mixed investment case with notable strengths in operational performance and growth potential, but significant risks related to debt and valuation.

Positive Factors

Data Center Acquisition

Data center demand was strong, with revenue growth of 13.3% above estimates, driven by a significant data center acquisition.

International Growth

AMT’s international business is expected to see strong growth, particularly in Africa and Europe, with low carrier churn and steady deployments.

Leasing Growth

U.S. carrier application volumes were +50% y/y, which combined with near-record services revenues is a good leading indicator for leasing and should help alleviate concerns related to the lowered U.S. leasing guidance.

Negative Factors

Earnings Impact

Adjusted EPS fell sharply by approximately 60% YoY due to FX losses in Q2, which were significantly higher compared to the previous year.

Growth Guidance

There is a marginal decrease in US organic billings growth guidance for FY25, which contributes to the decision to downgrade the stock to Hold.

Leasing Delays

2025 U.S. net organic growth was slightly lowered to ~4.3% from >4.3%, with delays in leasing commencements attributed to AT&T.

American Tower Business Overview & Revenue Model

Company Description

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.

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 shows robust profitability with strong margins and cash flow ratios. However, high leverage and modest revenue growth present risks to long-term financial stability. Strategic initiatives to boost revenue and manage debt are crucial.

Income Statement

American Tower's income statement shows solid profitability with a gross profit margin of 74.5% and a net profit margin of 17.3% for TTM. However, the revenue growth is relatively flat compared to the previous year, indicating a need for stronger top-line growth. The EBIT margin of 33.2% and EBITDA margin of 59.1% are strong, reflecting efficient operations.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 12.56, which could pose financial risks if interest rates rise or cash flows decrease. The equity ratio of 6.1% is low, indicating a heavy reliance on debt financing. Return on equity stands at 51.7%, showcasing strong profitability relative to shareholder investment.

Cash Flow

Cash flow analysis shows a steady operating cash flow with a high operating cash flow to net income ratio of 2.9, indicating good cash conversion. Free cash flow growth is moderate at 2.1% TTM, suggesting stable but not rapid expansion. The free cash flow to net income ratio is strong at 2.1, reflecting effective capital management.

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

American Tower Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 211.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 211.88 is above the 20-day moving average (MA) of 209.10, below the 50-day MA of 216.63, and above the 200-day MA of 204.07, indicating a neutral trend. The MACD of -2.73 indicates Negative momentum. The RSI at 50.47 is Neutral, neither overbought nor oversold. The STOCH value of 83.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMT.

American Tower Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EQIX	72 Outperform	$75.57B	75.59	7.54%	2.33%	5.74%	-6.58%
WY	67 Neutral	$18.59B	67.07	2.85%	3.06%	-6.57%	-62.32%
Sector *	65 Neutral	$2.06B	17.06	4.00%	5.06%	1.74%	-1.63%
AMT	65 Neutral	$98.21B	76.14	66.09%	3.13%	-9.52%	-48.20%
SBAC	64 Neutral	$23.72B	27.14	-14.67%	1.93%	1.82%	71.39%
IRM	60 Neutral	$26.74B	659.50	-35.81%	3.20%	10.72%	-81.96%
CCI	51 Neutral	$44.60B	33.81	-234.10%	5.55%	-17.95%	-398.78%

American Tower Corporate Events

American Tower Completes €500M Senior Notes Offering

On May 30, 2025, American Tower Corporation successfully completed a public offering of 500 million euros in senior unsecured notes due 2032, generating net proceeds of approximately 496.8 million euros. The company plans to use these funds to repay existing debt and for general corporate purposes, potentially impacting its financial flexibility and market positioning. The notes, which bear an interest rate of 3.625% per annum, include covenants that limit certain corporate actions and provide options for redemption under specific conditions, reflecting strategic financial management to maintain stability and investor confidence.