American Tower Corp

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AMT : NYSE : Technology
$131.1 up 0.05 | 0.038%
Today's Range: 130.49 - 131.44
Avg. Daily Volume: 2230400.0
05/26/17 - 3:59 PM ET

Financial Analysis


AMERICAN TOWER CORP's gross profit margin for the first 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 1.16% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)1616.241289.05
EBITDA ($mil)962.77797.74
EBIT ($mil)541.63456.11
Net Income ($mil)316.08275.16


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)863.55477.27
Total Assets ($mil)32057.3927064.32
Total Debt ($mil)18890.0817022.1
Equity ($mil)6852.476933.25


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin69.7772.38
EBITDA Margin59.5661.88
Operating Margin33.5135.38
Sales Turnover0.190.18
Return on Assets3.112.83
Return on Equity12.999.51
Debt Q1 FY17 Q1 FY16
Current Ratio0.530.87
Debt/Capital0.730.71
Interest Expense183.99160.16
Interest Coverage2.942.85


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)426.25424.56
Div / share0.00.0
EPS0.670.58
Book value / share16.0816.33
Institutional Own % n/a n/a
Avg Daily Volume2321844.02246101.0

Valuation


BUY. AMERICAN TOWER CORP's P/E ratio indicates a significant premium compared to an average of 51.52 for the Equity Real Estate Investment Trusts REITs industry and a significant premium compared to the S&P 500 average of 25.02. For additional comparison, its price-to-book ratio of 7.96 indicates a significant premium versus the S&P 500 average of 3.00 and a significant premium versus the industry average of 3.57. 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 62.13 Peers 51.52   AMT 19.38 Peers 18.90

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 34.87 Peers 62.39   AMT 1.22 Peers 4.87

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 significant 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 7.96 Peers 3.57   AMT 33.76 Peers 33.31

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.

 

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

AMT is expected to keep pace with its peers on the basis of earnings growth.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AMT 8.92 Peers 7.95   AMT 22.71 Peers 9.98

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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