American Tower Corp

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AMT : NYSE : Technology
$116.89 -0.95 | -0.81%
Today's Range: 116.18 - 118.11
Avg. Daily Volume: 1,783,000
07/25/16 - 3:59 PM ET

Financial Analysis


AMERICAN TOWER CORP's gross profit margin for the first quarter of its fiscal year 2016 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 weak liquidity. Currently, the Quick Ratio is 0.63 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.

During the same period, stockholders' equity ("net worth") has decreased by 5.69% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)1289.051079.19
EBITDA ($mil)797.74688.21
EBIT ($mil)456.11424.69
Net Income ($mil)275.16193.32


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)477.27467.3
Total Assets ($mil)27064.3225930.19
Total Debt ($mil)17022.115720.1
Equity ($mil)6933.257351.69


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin72.3875.2
EBITDA Margin61.8863.77
Operating Margin35.3839.35
Sales Turnover0.180.16
Return on Assets2.833.14
Return on Equity9.5110.63
Debt Q1 FY16 Q1 FY15
Current Ratio0.870.53
Debt/Capital0.710.68
Interest Expense160.16148.3
Interest Coverage2.852.86


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)424.56423.07
Div / share0.00.0
EPS0.580.45
Book value / share16.3317.38
Institutional Own % n/a n/a
Avg Daily Volume1779916.02289865.0

Valuation


BUY. AMERICAN TOWER CORP's P/E ratio indicates a significant premium compared to an average of 50.71 for the Real Estate Investment Trusts (REITs) industry and a significant premium compared to the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 7.20 indicates a significant premium versus the S&P 500 average of 2.81 and a significant premium versus the industry average of 4.07. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AMT 76.33 Peers 50.71   AMT 22.30 Peers 24.22

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

AMT is trading at a significant 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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AMT 39.65 Peers 55.43   AMT 1.20 Peers 4.98

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 7.20 Peers 4.07   AMT -21.03 Peers 63.97

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 10.02 Peers 8.76   AMT 18.74 Peers 47.28

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

AMT significantly trails its peers on the basis of sales growth

 

 

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