American Tower (AMT) AI Stock Analysis

• Market Cap: $100.64B
• Dividend Yield: 3.16%
• Average Volume (3M): 2.40M
• Price to Earnings (P/E): 55.2
• Beta (1Y): 0.22
• Revenue Growth: -6.05%
• EPS Growth: -11.75%
• Country: US
• Employees: 4,691
• Sector: Real Estate
• Sector Strength: 65
• Industry: REIT - Specialty
• EPS (TTM): 1.04
• Shares Outstanding: 468,138,240
• 10 Day Avg. Volume: 1,997,467
• 30 Day Avg. Volume: 2,402,003
• PEG Ratio: -1.69
• Price to Book (P/B): 17.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 53.65
• Enterprise Value/Market Cap: 1.42
• Enterprise Value/Revenue: 3.27
• Enterprise Value/Gross Profit: 19.81
• Enterprise Value/Ebitda: 4.96
• 1Y Price Target: $245.17
• Price Target Upside: 13.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 66 Neutral
• Price Target: $232.00 ▲(7.84%Upside)

American Tower's strong earnings performance and effective corporate events are overshadowed by high leverage and potential overvaluation concerns. While profitability and operational efficiency are robust, strategic measures to manage debt and enhance revenue growth are crucial for future stability.

Positive Factors

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.

International Growth

AMT’s international business is expected to see strong growth, particularly in Africa and Europe, with low carrier churn and steady deployments.

Negative Factors

U.S. Carrier Activity

The absence of proof-points of a material acceleration in U.S. carrier activity may lead tower stocks to remain range bound.

U.S. Leasing Performance

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

American Tower Business Overview & Revenue Model

Company Description

American Tower Corporation (AMT) is a leading independent owner, operator, and developer of wireless and broadcast communication real estate. Based in the United States, the company manages a vast portfolio of approximately 220,000 communications sites across the globe. American Tower provides essential infrastructure solutions for the wireless industry, including tower leasing, site development, and colocation services, enabling mobile network operators and other companies to deploy and expand their wireless networks efficiently.

How the Company Makes Money

American Tower primarily generates revenue through leasing space on its communications sites to wireless service providers, such as mobile network operators. The company enters into long-term lease agreements with these tenants, who install their equipment on American Tower's infrastructure. This leasing model provides a stable and recurring revenue stream. Additionally, American Tower engages in site development services, where they assist in the construction and development of new communication sites, further enhancing their portfolio. The company also explores strategic partnerships and investments to expand its global presence and leverage new technologies, such as 5G, to drive growth and maintain a competitive edge in the telecommunications landscape.

American Tower Financial Statement Overview

Summary

American Tower demonstrates robust profitability with strong EBIT and EBITDA margins. However, the high debt-to-equity ratio and modest revenue growth present financial risks and challenges for sustained long-term growth.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.53B	10.13B	11.14B	10.71B	9.36B	8.04B
	Gross Profit
7.21B	7.55B	7.88B	7.45B	6.67B	5.81B
	EBIT
4.81B	4.52B	3.02B	2.35B	3.13B	2.89B
	EBITDA
7.45B	6.69B	6.01B	6.46B	5.88B	5.00B
	Net Income Common Stockholders
1.83B	2.25B	1.48B	1.77B	2.57B	1.69B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.10B	2.00B	1.97B	2.03B	1.95B	1.75B
	Total Assets
62.06B	61.08B	66.03B	67.19B	69.89B	47.23B
	Total Debt
44.38B	43.95B	47.15B	47.05B	52.01B	36.71B
	Net Debt
42.28B	41.95B	45.18B	45.02B	50.06B	34.97B
	Total Liabilities
52.12B	51.43B	55.16B	54.79B	60.82B	42.45B
	Stockholders Equity
3.53B	3.38B	4.20B	5.57B	5.08B	4.09B
Cash Flow		Free Cash Flow
3.78B	3.70B	2.92B	1.82B	3.44B	2.85B
	Operating Cash Flow
5.30B	5.29B	4.72B	3.70B	4.82B	3.88B
	Investing Cash Flow
497.70M	410.60M	-1.70B	-2.36B	-20.69B	-4.78B
	Financing Cash Flow
-5.91B	-5.45B	-3.10B	-1.42B	16.42B	1.22B

American Tower Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 215.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 215.14 is above the 20-day moving average (MA) of 212.62, above the 50-day MA of 213.19, and above the 200-day MA of 205.22, indicating a bullish trend. The MACD of 0.58 indicates Negative momentum. The RSI at 54.63 is Neutral, neither overbought nor oversold. The STOCH value of 62.16 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	$86.88B	92.28	7.08%	2.11%	6.36%	-3.54%
SBAC	69 Neutral	$24.73B	30.46	-14.67%	1.93%	-0.29%	47.83%
IRM	69 Neutral	$30.12B	248.77	-35.81%	3.08%	11.04%	-37.29%
AMT	66 Neutral	$100.64B	55.17	80.05%	3.16%	-6.05%	-11.75%
WY	66 Neutral	$19.36B	53.27	3.71%	3.15%	-6.56%	-54.29%
Sector *	61 Neutral	$2.83B	10.87	0.41%	8.09%	5.96%	-21.24%
CCI	51 Neutral	$43.11B	33.81	-198.54%	4.29%	-12.57%	-375.80%

American Tower Corporate Events

American Tower Completes €500M Senior Notes Offering

On May 30, 2025, American Tower Corporation successfully completed a public offering of 500 million euros in senior unsecured notes due 2032, generating net proceeds of approximately 496.8 million euros. The company plans to use these funds to repay existing debt and for general corporate purposes, potentially impacting its financial flexibility and market positioning. The notes, which bear an interest rate of 3.625% per annum, include covenants that limit certain corporate actions and provide options for redemption under specific conditions, reflecting strategic financial management to maintain stability and investor confidence.

The most recent analyst rating on (AMT) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on American Tower stock, see the AMT Stock Forecast page.

American Tower Announces €500M Senior Notes Offering

On May 21, 2025, American Tower Corporation announced the pricing of its registered public offering of senior unsecured notes due 2032, amounting to €500 million. The notes, bearing an interest rate of 3.625% per annum, are issued at nearly full face value. The net proceeds, estimated at €496.8 million, will be used to repay existing debt under a $6 billion revolving credit facility and for general corporate purposes. This financial maneuver is expected to enhance the company’s fiscal flexibility and potentially strengthen its market position.

The most recent analyst rating on (AMT) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on American Tower stock, see the AMT Stock Forecast page.

American Tower Announces Quarterly Cash Distribution

On May 14, 2025, American Tower Corporation held its Annual Meeting of Stockholders virtually, where eleven individuals were elected to the Board of Directors, and stockholders approved the company’s executive compensation and the selection of Deloitte & Touche LLP as its independent accounting firm for 2025. Following the meeting, on May 15, 2025, the company announced a quarterly cash distribution of $1.70 per share, payable on July 11, 2025, to stockholders of record as of June 13, 2025, reflecting its ongoing commitment to shareholder returns.

The most recent analyst rating on (AMT) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on American Tower stock, see the AMT Stock Forecast page.