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American Tower Corp AMT

Morningstar Rating
$201.76 +2.90 (1.46%)
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Company Report

American Tower Earnings: Generally Good Results and Outlook Amid Various Headwinds

Despite the recent slowdown in US wireless carrier spending and industry consolidation in several countries, American Tower capped a solid 2023 with a good fourth quarter, and the firm’s growth outlook for 2024 is mostly encouraging. The market may be disappointed with a dividend payment that will tick down in 2024 from the annualized fourth-quarter level, but we view this positively as well, as it should help the company strengthen its balance sheet. We are maintaining our $215 fair value estimate and think the stock is attractive.

Price vs Fair Value

AMT is trading at a 6% discount.
Price
$201.76
Fair Value
$847.00
Uncertainty
Medium
1-Star Price
$361.74
5-Star Price
$479.70
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Carrier investment in towers must continue as mobile data usage continues growing rapidly. Greater use of Internet of Things (internet-connected kitchen appliances, for example), 5G, and video content should keep this trend in place for years.

Bears

Technological advances and the move to 5G will allow carriers to use fewer towers. Sales growth could slow relative to historical results because of the rolling off of Sprint contracts and further carrier consolidation internationally.

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News

Trading Information

Previous Close Price
$198.86
Day Range
$196.15202.05
52-Week Range
$154.58219.10
Bid/Ask
$200.42 / $202.17
Market Cap
$94.05 Bil
Volume/Avg
3.5 Mil / 2.3 Mil

Key Statistics

Price/Earnings (Normalized)
39.95
Price/Sales
8.46
Dividend Yield (Trailing)
3.20%
Dividend Yield (Forward)
3.37%
Total Yield
3.20%

Company Profile

American Tower owns and operates more than 220,000 cell towers throughout the U.S., Asia, Latin America, Europe, and Africa. It also owns and/or operates 28 data centers in 10 U.S. markets after acquiring CoreSite. On its towers, the company has a very concentrated customer base, with most revenue in each market being generated by just the top few mobile carriers. The company operates more than 40,000 towers in the U.S., which accounted for almost half of the company's total revenue in 2023. Outside the U.S., American Tower operates over 75,000 towers in India, almost 50,000 towers in Latin America (dominated by Brazil), 30,000 towers in Europe, and nearly 25,000 towers in Africa. American Tower operates as an REIT.
Sector
Real Estate
Industry
REIT - Specialty
Stock Style Box
Large Core
Total Number of Employees
5,643

Competitors

Valuation

Metric
AMT
SBAC
CCI
Price/Earnings (Normalized)
39.9540.1127.10
Price/Book Value
22.417.55
Price/Sales
8.468.376.90
Price/Cash Flow
17.0215.3313.78
Price/Earnings
AMT
SBAC
CCI

Financial Strength

Metric
AMT
SBAC
CCI
Quick Ratio
0.420.300.27
Current Ratio
0.510.360.40
Interest Coverage
1.992.222.84
Quick Ratio
AMT
SBAC
CCI

Profitability

Metric
AMT
SBAC
CCI
Return on Assets (Normalized)
4.50%8.37%4.56%
Return on Equity (Normalized)
60.17%25.50%
Return on Invested Capital (Normalized)
7.01%12.89%7.24%
Return on Assets
AMT
SBAC
CCI
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REIT - Specialty Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
EQIX
Equinix IncVrfyqp$85.2 Bil
CCI
Crown Castle IncMmxcldx$48.2 Bil
DLR
Digital Realty Trust IncZmtxzl$47.0 Bil
WY
Weyerhaeuser CoJxp$25.5 Bil
IRM
Iron Mountain IncLpczxyz$23.7 Bil
SBAC
SBA Communications Corp Class ASvtvqb$22.5 Bil
GLPI
Gaming and Leisure Properties IncJgjn$12.3 Bil
RYN
Rayonier IncDkfl$5.1 Bil
UNIT
Uniti Group IncKzm$1.5 Bil

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