American Tower (AMT) AI Stock Analysis

• Market Cap: $97.58B
• Dividend Yield: 3.13%
• Average Volume (3M): 1.98M
• Price to Earnings (P/E): 75.6
• Beta (1Y): 0.19
• Revenue Growth: -9.52%
• EPS Growth: -48.20%
• Country: US
• Employees: 4,691
• Sector: Real Estate
• Sector Strength: 56
• Industry: REIT - Specialty
• EPS (TTM): 0.78
• Shares Outstanding: 468,251,220
• 10 Day Avg. Volume: 2,098,904
• 30 Day Avg. Volume: 1,980,427
• PEG Ratio: -2.89
• Price to Book (P/B): 28.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.62
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 7.35
• Enterprise Value/Gross Profit: 43.40
• Enterprise Value/Ebitda: 12.79
• 1Y Price Target: $249.33
• Price Target Upside: 17.55% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 64 Neutral
• Price Target: $223.00 ▲(5.14%Upside)

American Tower's overall score reflects stable financial performance and positive earnings guidance, offset by technical indicators showing bearish momentum and a high P/E ratio indicating potential overvaluation. Positive corporate events and an attractive dividend yield provide additional support.

Positive Factors

Data Center Demand

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

International Growth

International organic billings growth of 6.5% topped estimates, with a 2025 outlook now greater than 6%, showing better growth in A-APAC/LatAm regions.

U.S. Carrier Application Volumes

U.S. carrier application volumes were up 50% year-over-year, which combined with near-record services revenues is a good leading indicator for leasing.

Negative Factors

Adjusted EPS Decline

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

Stock Potential

Shares have rallied well and there is no major potential for further gains in the near term, especially with the marginal decrease in US organic billings growth guidance.

U.S. Organic Growth Guidance

American Tower lowered its 2025 U.S. organic growth guide due to slower than expected commencements from AT&T.

American Tower Business Overview & Revenue Model

Company Description

American Tower Corporation (AMT) is a leading independent owner, operator, and developer of wireless and broadcast communication real estate. Based in the United States, the company manages a vast portfolio of approximately 220,000 communications sites across the globe. American Tower provides essential infrastructure solutions for the wireless industry, including tower leasing, site development, and colocation services, enabling mobile network operators and other companies to deploy and expand their wireless networks efficiently.

How the Company Makes Money

American Tower primarily generates revenue through leasing space on its communications sites to wireless service providers, such as mobile network operators. The company enters into long-term lease agreements with these tenants, who install their equipment on American Tower's infrastructure. This leasing model provides a stable and recurring revenue stream. Additionally, American Tower engages in site development services, where they assist in the construction and development of new communication sites, further enhancing their portfolio. The company also explores strategic partnerships and investments to expand its global presence and leverage new technologies, such as 5G, to drive growth and maintain a competitive edge in the telecommunications landscape.

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: Negative
• Last Price: 212.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 212.1 is below the 20-day moving average (MA) of 221.65, below the 50-day MA of 217.92, and above the 200-day MA of 204.69, indicating a neutral trend. The MACD of -1.22 indicates Positive momentum. The RSI at 39.78 is Neutral, neither overbought nor oversold. The STOCH value of 11.91 is Positive, 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	78 Outperform	$76.84B	76.86	7.54%	2.32%	5.74%	-6.58%
SBAC	68 Neutral	$24.15B	29.74	-14.67%	1.83%	-0.29%	47.83%
IRM	67 Neutral	$27.77B	229.42	-35.81%	3.08%	11.04%	-37.29%
AMT	64 Neutral	$97.58B	75.65	66.09%	3.13%	-9.52%	-48.20%
Sector *	63 Neutral	$6.75B	14.42	-1.87%	7.29%	3.96%	-36.04%
WY	62 Neutral	$18.07B	65.20	2.85%	3.27%	-6.57%	-62.32%
CCI	60 Neutral	$45.71B	33.81	-234.10%	5.39%	-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.

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.

American Tower Announces €500M Senior Notes Offering

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.

American Tower Announces Quarterly Cash Distribution

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.