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American Tower (AMT)
NYSE:AMT
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American Tower
(NYSE:AMT)
Rating:65Neutral
Price Target:
$228.00
▲( 8.43% Upside)
Positive Factors
Earnings
AMT reported upside 1Q25 results and raised its 2025 guidance for revenue, EBITDA, and AFFO/share.
Industry Trends
U.S. carrier activity remains healthy with applications showing strong growth.
Market Position
AMT is preferred for its peer-leading AFFO/sh growth, holistic MLA domestic contract structure which provides stability, absence of Sprint churn post 3Q25, and diverse international and data center exposure.
Negative Factors
Carrier Activity
The absence of proof-points of a material acceleration in U.S. carrier activity may lead tower stocks to remain range bound.
U.S. Leasing
2025 U.S leasing of $165-170 million missed estimates of $183 million.
American Tower (AMT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$100.84B
Dividend Yield3.07%
Average Volume (3M)3.24M
Price to Earnings (P/E)55.3
Beta (1Y)0.22
Revenue Growth-6.05%
EPS Growth-11.75%
CountryUS
Employees4,691
SectorReal Estate
Sector Strength62
IndustryREIT - Specialty
Share Statistics
EPS (TTM)1.04
Shares Outstanding468,138,240
10 Day Avg. Volume3,153,374
30 Day Avg. Volume3,236,826
Financial Highlights & Ratios
PEG Ratio-2.96
Price to Book (P/B)29.10
Price to Sales (P/S)0.00
P/FCF Ratio27.26
Enterprise Value/Market Cap1.44
Enterprise Value/Revenue3.32
Enterprise Value/Gross Profit20.15
Enterprise Value/Ebitda5.05
Forecast
1Y Price Target
$244.40Price Target Upside16.23% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
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 robust profitability and efficient operations, as seen in its strong margins and cash flow ratios. However, the high leverage and modest revenue growth may present challenges in sustaining long-term financial stability. Strategic initiatives to enhance revenue growth and manage debt could strengthen their financial position.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.75
Positive
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.60
Neutral
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.70
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 10.53B | 10.13B | 11.14B | 10.71B | 9.36B | 8.04B | Gross Profit |
| 7.21B | 7.55B | 7.88B | 7.45B | 6.67B | 5.81B | EBIT |
| 4.81B | 4.52B | 3.02B | 2.35B | 3.13B | 2.89B | EBITDA |
| 7.45B | 6.69B | 6.01B | 6.46B | 5.88B | 5.00B | Net Income Common Stockholders |
| 1.83B | 2.25B | 1.48B | 1.77B | 2.57B | 1.69B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.52B | 2.00B | 1.97B | 2.03B | 1.95B | 1.75B | Total Assets |
| 66.68B | 61.08B | 66.03B | 67.19B | 69.89B | 47.23B | Total Debt |
| 47.84B | 43.95B | 47.15B | 47.05B | 52.01B | 36.71B | Net Debt |
| 45.32B | 41.95B | 45.18B | 45.02B | 50.06B | 34.97B | Total Liabilities |
| 56.02B | 51.43B | 55.16B | 54.79B | 60.82B | 42.45B | Stockholders Equity |
| 4.05B | 3.38B | 4.20B | 5.57B | 5.08B | 4.09B |
| Cash Flow | Free Cash Flow | ||||
| 3.78B | 3.70B | 2.92B | 1.82B | 3.44B | 2.85B | Operating Cash Flow |
| 5.30B | 5.29B | 4.72B | 3.70B | 4.82B | 3.88B | Investing Cash Flow |
| 497.70M | 410.60M | -1.70B | -2.36B | -20.69B | -4.78B | Financing Cash Flow |
| -5.91B | -5.45B | -3.10B | -1.42B | 16.42B | 1.22B |
American Tower Technical Analysis
Negative
210.27
Price Trends
214.45
Negative
201.92
Positive
207.11
Positive
Market Momentum
-0.76
Positive
45.03
Neutral
64.95
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 210.27 is below the 20-day moving average (MA) of 215.87, below the 50-day MA of 214.45, and above the 200-day MA of 207.11, indicating a neutral trend. The MACD of -0.76 indicates Positive momentum. The RSI at 45.03 is Neutral, neither overbought nor oversold. The STOCH value of 64.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMT.
American Tower Risk Analysis
American Tower disclosed 21 risk factors in its most recent earnings report. American Tower reported the most risks in the “Legal & Regulatory” 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $85.68B | 91.00 | 7.08% | 2.03% | 6.36% | -3.54% | |
74 Outperform | $24.53B | 30.21 | -14.67% | 1.75% | -0.29% | 47.83% | |
69 Neutral | $28.27B | 233.49 | -35.81% | 2.98% | 11.04% | -37.29% | |
65 Neutral | $100.84B | 55.28 | 80.05% | 3.07% | -6.05% | -11.75% | |
61 Neutral | $18.31B | 50.38 | 3.71% | 3.22% | -6.56% | -54.29% | |
60 Neutral | $2.75B | 10.29 | 0.33% | 8508.22% | 5.95% | -17.48% | |
57 Neutral | $44.82B | 33.81 | -198.54% | 6.17% | -12.57% | -375.80% |
* Real Estate Sector Average
Performance Comparison
AMT
American Tower
210.27
30.30
16.84%
CCI
Crown Castle
99.92
7.66
8.30%
EQIX
Equinix
866.50
115.87
15.44%
IRM
Iron Mountain
95.80
17.87
22.93%
SBAC
SBA Communications
228.27
43.70
23.68%
WY
Weyerhaeuser
25.25
-4.16
-14.14%
American Tower Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: -0.49%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
American Tower reported a strong start to 2025, with significant growth in the U.S. services business and CoreSite. However, challenges such as Sprint churn and FX headwinds were noted, along with a cautious outlook due to global economic uncertainties.Q1-2025 Updates
Positive Updates
Strong Start to Fiscal Year 2025
American Tower exceeded initial expectations across property revenue, adjusted EBITDA, and attributable AFFO per share for the quarter.
U.S. Services Business Growth
The U.S. services business delivered its highest quarter of revenue and gross profit since 2021, with applications rising nearly 30% compared to Q4 2024 and up roughly 60% versus Q1 2024.
CoreSite Performance
CoreSite posted high-single-digit revenue growth, supported by strong leasing and continued pricing favorability.
Successful Capital Market Activities
American Tower issued $1 billion in senior unsecured notes at a weighted average cost of just over 5%, reducing net leverage to 5 times.
Positive International Growth
International property revenue grew 8% excluding FX impacts, with strong performance in emerging markets like Nigeria and Brazil.
Negative Updates
Impact of Sprint Churn
U.S. and Canada property revenue declined approximately 1% due to over 1% negative impact from Sprint churn.
FX Headwinds
The company absorbed approximately 300 basis points of FX headwinds, affecting consolidated property revenue growth.
Challenging Global Economic Backdrop
Concerns were raised about the global economic backdrop, potential uncertainty in emerging markets, and FX volatility.
Company Guidance
During the American Tower First Quarter 2025 Earnings Conference Call, the company provided comprehensive guidance highlighting several key financial metrics. American Tower exceeded initial expectations in property revenue, adjusted EBITDA, and attributable AFFO per share for the quarter. The company reported a 4.7% growth in consolidated organic tenant billings, with U.S. and Canada property revenue growing over 3.5%, excluding non-cash straight-line impacts. The international segment showed a roughly flat year-over-year performance, but with 8% growth excluding FX fluctuations. CoreSite's performance was robust, driven by strong leasing and pricing, contributing to a 9% growth in property revenue. The company revised its full-year outlook, raising expectations for property revenue by $50 million, adjusted EBITDA by $30 million, attributable AFFO by $20 million, and attributable AFFO per share by $0.04, primarily due to updated FX assumptions. For 2025, American Tower expects consolidated organic tenant billings growth of approximately 5%, supported by strong leasing trends and prudent cost management, which expanded cash-adjusted EBITDA margin by nearly 70 basis points to 68.2%.American Tower Corporate Events
Private Placements and Financing
American Tower Announces €500M Senior Notes Offering
Positive
May 21, 2025
On May 21, 2025, American Tower Corporation announced the pricing of its registered public offering of senior unsecured notes due 2032, amounting to €500 million. The notes, bearing an interest rate of 3.625% per annum, are issued at nearly full face value. The net proceeds, estimated at €496.8 million, will be used to repay existing debt under a $6 billion revolving credit facility and for general corporate purposes. This financial maneuver is expected to enhance the company’s fiscal flexibility and potentially strengthen its market position.
The most recent analyst rating on (AMT) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on American Tower stock, see the AMT Stock Forecast page.
Executive/Board ChangesShareholder MeetingsDividends
American Tower Announces Quarterly Cash Distribution
Positive
May 15, 2025
On May 14, 2025, American Tower Corporation held its Annual Meeting of Stockholders virtually, where eleven individuals were elected to the Board of Directors, and stockholders approved the company’s executive compensation and the selection of Deloitte & Touche LLP as its independent accounting firm for 2025. Following the meeting, on May 15, 2025, the company announced a quarterly cash distribution of $1.70 per share, payable on July 11, 2025, to stockholders of record as of June 13, 2025, reflecting its ongoing commitment to shareholder returns.
The most recent analyst rating on (AMT) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on American Tower stock, see the AMT Stock Forecast page.
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.
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.