American Tower Corp

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AMT : NYSE : Technology
$113.22 -0.62 | -0.54%
Today's Range: 112.67 - 114.00
Avg. Daily Volume: 1,812,800
08/30/16 - 3:59 PM ET

Financial Analysis


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 ($mil)1442.231174.38
EBITDA ($mil)839.54727.68
EBIT ($mil)441.78399.32
Net Income ($mil)187.55156.06


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)553.3450.24
Total Assets ($mil)30740.226469.73
Total Debt ($mil)18717.0816224.03
Equity ($mil)6773.527310.87


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin67.871.87
EBITDA Margin58.2161.96
Operating Margin30.6334.0
Sales Turnover0.170.16
Return on Assets2.592.78
Return on Equity10.29.31
Debt Q2 FY16 Q2 FY15
Current Ratio0.80.91
Debt/Capital0.730.69
Interest Expense181.32148.88
Interest Coverage2.442.68


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)425.26423.27
Div / share1.040.86
EPS0.370.3
Book value / share15.9317.27
Institutional Own % n/a n/a
Avg Daily Volume1794790.01840725.0

Valuation


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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
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.

 

 

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