American Tower Corp

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AMT : NYSE : Technology
$141.41 -3.4 | -2.3%
Today's Range: 138.78 - 145.58
Avg. Daily Volume: 1647100.0
09/19/17 - 3:04 PM ET

Financial Analysis


AMERICAN TOWER CORP's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged 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 very weak liquidity. Currently, the Quick Ratio is 0.42 which clearly 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 remained virtually unchanged only decreasing by 4.29% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)1662.431442.23
EBITDA ($mil)979.47839.54
EBIT ($mil)583.11441.78
Net Income ($mil)367.05187.55


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)914.31553.3
Total Assets ($mil)32138.2130740.2
Total Debt ($mil)19241.9718717.08
Equity ($mil)6482.716773.52


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin68.1367.8
EBITDA Margin58.9158.21
Operating Margin35.0830.63
Sales Turnover0.20.17
Return on Assets3.662.59
Return on Equity16.5610.2
Debt Q2 FY17 Q2 FY16
Current Ratio0.550.8
Debt/Capital0.750.73
Interest Expense187.32181.32
Interest Coverage3.112.44


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)429.18425.26
Div / share1.261.04
EPS0.80.37
Book value / share15.1115.93
Institutional Own % n/a n/a
Avg Daily Volume1646607.02088943.0

Valuation


BUY. AMERICAN TOWER CORP's P/E ratio indicates a discount compared to an average of 60.91 for the Equity Real Estate Investment Trusts REITs industry and a significant premium compared to the S&P 500 average of 24.88. For additional comparison, its price-to-book ratio of 9.46 indicates a significant premium versus the S&P 500 average of 3.10 and a significant premium versus the industry average of 3.91. The price-to-sales ratio is well above both the S&P 500 average and 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 57.37 Peers 60.91   AMT 21.35 Peers 19.13

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.

 

Premium. 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 premium 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 38.40 Peers 54.38   AMT 1.12 Peers 3.77

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

AMT is trading at a discount to 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 9.46 Peers 3.91   AMT 54.65 Peers 75.66

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AMT 9.68 Peers 8.31   AMT 20.64 Peers 12.34

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.

 

 

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