American Tower Corp

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AMT : NYSE : Technology
$102.82 up 0.43 | 0.42%
Today's Range: 102.425 - 103.13
Avg. Daily Volume: 2693900.0
12/09/16 - 2:47 PM ET

Financial Analysis


AMERICAN TOWER CORP's gross profit margin for the third quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. AMERICAN TOWER CORP has weak liquidity. Currently, the Quick Ratio is 0.68 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.35% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)1514.851237.91
EBITDA ($mil)880.04756.55
EBIT ($mil)482.04415.45
Net Income ($mil)264.51103.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)681.01439.82
Total Assets ($mil)30655.5326926.79
Total Debt ($mil)18679.1417027.41
Equity ($mil)6707.46617.89


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin66.7870.39
EBITDA Margin58.0961.11
Operating Margin31.8233.56
Sales Turnover0.180.17
Return on Assets3.132.34
Return on Equity12.718.42
Debt Q3 FY16 Q3 FY15
Current Ratio0.90.69
Debt/Capital0.740.72
Interest Expense190.44149.83
Interest Coverage2.532.77


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)425.62423.5
Div / share0.550.46
EPS0.550.18
Book value / share15.7615.63
Institutional Own % n/a n/a
Avg Daily Volume2648326.01806665.0

Valuation


BUY. AMERICAN TOWER CORP's P/E ratio indicates a discount compared to an average of 53.60 for the Equity Real Estate Investment Trusts REITs industry and a significant premium compared to the S&P 500 average of 25.22. For additional comparison, its price-to-book ratio of 6.51 indicates a significant premium versus the S&P 500 average of 2.79 and a significant premium versus the industry average of 3.51. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AMT 51.80 Peers 53.60   AMT 16.67 Peers 19.41

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

AMT is trading at a valuation on par with its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

AMT is trading at a discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AMT 36.76 Peers 49.07   AMT 1.09 Peers 18.28

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

AMT is trading at a valuation on par with its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

AMT trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AMT 6.51 Peers 3.51   AMT 46.66 Peers 57.11

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

AMT is trading at a significant premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, AMT is expected to trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AMT 7.90 Peers 7.54   AMT 21.78 Peers 15.74

Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

AMT is trading at a valuation on par with its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

AMT has a sales growth rate that significantly exceeds its peers.

 

 

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