American Tower (AMT) AI Stock Analysis

• Market Cap: $104.77B
• Dividend Yield: 3.01%
• Average Volume (3M): 3.48M
• Price to Earnings (P/E): 57.4
• Beta (1Y): 0.27
• Revenue Growth: -6.05%
• EPS Growth: -11.75%
• Country: US
• Employees: 4,691
• Sector: Real Estate
• Sector Strength: 81
• Industry: REIT - Specialty
• EPS (TTM): 1.04
• Shares Outstanding: 468,138,240
• 10 Day Avg. Volume: 3,201,880
• 30 Day Avg. Volume: 3,481,577
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.44
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 19.93
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $243.40
• Price Target Upside: 10.65% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18

American Tower's robust financial performance, particularly in profitability and operational efficiency, is a key strength. The technical indicators are favorable, suggesting positive momentum. However, the high P/E ratio and significant leverage are concerns. The recent earnings call and corporate event indicate strong initial growth for 2025, but caution is warranted due to potential economic and market challenges.

Positive Factors

Carrier Trends

U.S. carrier activity was healthy, with applications increasing and more than doubling year over year.

Data Center Demand

Data center demand remains strong with record leasing and revenue growth expected to accelerate.

Financial Performance

AMT reported upside 1Q25 results and raised its 2025 guidance for revenue, EBITDA, and AFFO/share.

Negative Factors

FX and Interest Expenses

AFFO/share growth forecasts for 2025 of 4.4% at the mid-point reflect 270bp of FX headwinds and 170bp of higher interest expense, with churn creating additional headwinds.

U.S. Leasing Estimates

2025 U.S leasing of $165-170 million missed estimates of $183 million.

American Tower Business Overview & Revenue Model

Company Description

American Tower Corporation, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of approximately 219,000 communications sites. For more information about American Tower, please visit the Earnings Materials and Investor Presentations sections of our investor relations website at www.americantower.com.

How the Company Makes Money

American Tower primarily makes money by leasing space on its communications sites to wireless service providers, radio and television broadcast companies, wireless data providers, government agencies, and municipalities. The company enters into long-term contracts with these tenants, providing stable and predictable revenue streams. Additionally, American Tower offers managed rooftop and indoor antenna infrastructure services. The company benefits from the growing demand for mobile data, the expansion of 5G networks, and the increasing need for wireless infrastructure, which drive the demand for its tower space. Strategic partnerships with major telecommunications companies further bolster its revenue, as these partnerships often involve long-term agreements and shared investments in infrastructure development.

American Tower Financial Statement Overview

Summary

American Tower demonstrates robust profitability and efficient operations, as seen in its strong margins and cash flow ratios. However, the high leverage and modest revenue growth may present challenges in sustaining long-term financial stability. Strategic initiatives to enhance revenue growth and manage debt could strengthen their financial position.

Income Statement

American Tower's income statement shows solid profitability with a gross profit margin of 74.5% and a net profit margin of 17.3% for TTM. However, the revenue growth is relatively flat compared to the previous year, indicating a need for stronger top-line growth. The EBIT margin of 33.2% and EBITDA margin of 59.1% are strong, reflecting efficient operations.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 12.56, which could pose financial risks if interest rates rise or cash flows decrease. The equity ratio of 6.1% is low, indicating a heavy reliance on debt financing. Return on equity stands at 51.7%, showcasing strong profitability relative to shareholder investment.

Cash Flow

Cash flow analysis shows a steady operating cash flow with a high operating cash flow to net income ratio of 2.9, indicating good cash conversion. Free cash flow growth is moderate at 2.1% TTM, suggesting stable but not rapid expansion. The free cash flow to net income ratio is strong at 2.1, reflecting effective capital management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.13B	11.14B	10.71B	9.36B	8.04B
	Gross Profit
7.55B	7.88B	7.45B	6.67B	5.81B
	EBIT
4.52B	3.02B	2.35B	3.13B	2.89B
	EBITDA
6.69B	6.01B	6.46B	5.88B	5.00B
	Net Income Common Stockholders
2.25B	1.48B	1.77B	2.57B	1.69B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.00B	1.97B	2.03B	1.95B	1.75B
	Total Assets
61.08B	66.03B	67.19B	69.89B	47.23B
	Total Debt
43.95B	47.15B	47.05B	52.01B	36.71B
	Net Debt
41.95B	45.18B	45.02B	50.06B	34.97B
	Total Liabilities
51.43B	55.16B	54.79B	60.82B	42.45B
	Stockholders Equity
3.38B	4.20B	5.57B	5.08B	4.09B
Cash Flow		Free Cash Flow
3.70B	2.92B	1.82B	3.44B	2.85B
	Operating Cash Flow
5.29B	4.72B	3.70B	4.82B	3.88B
	Investing Cash Flow
410.60M	-1.70B	-2.36B	-20.69B	-4.78B
	Financing Cash Flow
-5.45B	-3.10B	-1.42B	16.42B	1.22B

American Tower Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 219.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMT, the sentiment is Positive. The current price of 219.97 is above the 20-day moving average (MA) of 218.68, above the 50-day MA of 213.82, and above the 200-day MA of 207.29, indicating a bullish trend. The MACD of 2.49 indicates Positive momentum. The RSI at 53.93 is Neutral, neither overbought nor oversold. The STOCH value of 58.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMT.

American Tower Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EQIX	78 Outperform	$85.63B	91.76	7.08%	2.03%	6.36%	-3.54%
SBAC	74 Outperform	$26.09B	32.03	-14.67%	1.71%	-0.29%	47.83%
AMT	73 Outperform	$104.77B	57.45	80.05%	3.01%	-6.05%	-11.75%
IRM	69 Neutral	$28.25B	233.39	-35.81%	2.96%	11.04%	-37.29%
WY	61 Neutral	$18.52B	51.54	3.71%	3.12%	-6.56%	-54.29%
Sector *	60 Neutral	$2.80B	11.09	0.20%	8508.36%	6.13%	-16.84%
CCI	55 Neutral	$46.53B	33.81	-198.54%	6.06%	-12.57%	-375.80%

American Tower Corporate Events

American Tower Reviews Executive Compensation for 2025

On February 27, 2025, American Tower Corporation’s Compensation Committee reviewed the compensation arrangements for its executive officers for the year ending December 31, 2025. The committee set base salaries and cash bonus targets for the CEO, CFO, and other top executives, with potential bonuses tied to the achievement of company and individual goals. Sanjay Goel, the Executive Vice President and President of Asia-Pacific, will leave the company on March 31, 2025, and will receive prorated compensation for his service in 2025.