American Tower CorpFind Ratings Reports
AMERICAN TOWER CORP's gross profit margin for the second 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 0.56 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has decreased by 7.35% 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||Q2 FY16||Q2 FY15|
|Net Sales ($mil)||1442.23||1174.38|
|Net Income ($mil)||187.55||156.06|
|Balance Sheet||Q2 FY16||Q2 FY15|
|Cash & Equiv. ($mil)||553.3||450.24|
|Total Assets ($mil)||30740.2||26469.73|
|Total Debt ($mil)||18717.08||16224.03|
|Profitability||Q2 FY16||Q2 FY15|
|Gross Profit Margin||67.8||71.87|
|Return on Assets||2.59||2.78|
|Return on Equity||10.2||9.31|
|Debt||Q2 FY16||Q2 FY15|
|Share Data||Q2 FY16||Q2 FY15|
|Shares outstanding (mil)||425.26||423.27|
|Div / share||1.04||0.86|
|Book value / share||15.93||17.27|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1794790.0||1840725.0|
BUY. AMERICAN TOWER CORP's P/E ratio indicates a significant premium compared to an average of 60.55 for the Real Estate Investment Trusts (REITs) industry and a significant premium compared to the S&P 500 average of 25.13. For additional comparison, its price-to-book ratio of 7.17 indicates a significant premium versus the S&P 500 average of 2.82 and a significant premium versus the industry average of 3.83. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, AMERICAN TOWER CORP proves to trade at a premium to investment alternatives within the industry.
|AMT 70.96||Peers 60.55||AMT 19.75||Peers 21.63|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
AMT is trading at a premium to its peers.
Average. 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 valuation on par to its peers.
|AMT 40.59||Peers 60.43||AMT 1.56||Peers 3.65|
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.
|AMT 7.17||Peers 3.83||AMT -3.60||Peers 8.94|
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 significantly trail its peers on the basis of its earnings growth rate.
|AMT 9.26||Peers 8.42||AMT 21.00||Peers 14.96|
Premium. 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 premium to 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.