AMT American Tower Corporation - Fundamental Analysis
NEUTRAL
AMT Stock | Fundamental Analysis & Investment Insights
NYSE
•
Real Estate
•
REIT - Specialty
Current Price
$183.59
Analyst Target
$232.0
+26.4% Upside
52W High
$234.33
52W Low
$172.51
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
65%
Analysis Accuracy
American Tower Corporation (AMT) trades at a premium valuation with strong profitability metrics, including a 45.48% operating margin and 28.84% ROE, outperforming the Real Estate sector average. However, recent earnings volatility—evidenced by 3 negative surprises in the last 4 quarters and a -25.54% average surprise—is a significant concern, despite a strong +207.1% YoY EPS growth in the most recent period. The stock has underperformed peers like Prologis (PLD), with a -2.5% 1Y return versus PLD’s +11.0%, and faces headwinds from high leverage (Debt/Equity: 4.18) and a concerning 107.18% dividend payout ratio. While analysts maintain a 'buy' recommendation with a $232.00 target implying 26% upside, insider selling and inconsistent earnings delivery temper near-term conviction.
Key Strengths
Exceptional profitability: 45.48% operating margin and 28.84% ROE, significantly above sector averages (5.96% ROE, 35.24% profit margin)
High dividend yield of 3.70%, attractive in a yield-starved REIT environment
Strong YoY revenue growth of 7.70%, in line with peer average of 8.70%
Impressive gross margin of 74.29%, reflecting pricing power and low variable costs in tower infrastructure
Analyst target price of $232.00 suggests 26.4% upside, indicating strong institutional confidence
Key Risks
Earnings volatility: 3 out of last 4 quarters missed estimates, with an average surprise of -25.54%
Unsustainable dividend payout ratio of 107.18%, raising concerns about future distribution coverage
High financial leverage with Debt/Equity of 4.18, far above sector average of 0.63, increasing refinancing and interest rate risk
Poor liquidity profile: current ratio of 0.59 and quick ratio of 0.49, indicating potential short-term solvency pressure
Negative insider activity: recent officer sale of $0.15M, with no buys in last 6 months, signaling lack of confidence
AI Fair Value Estimate
Based on comprehensive analysis
$232.0
+26.4% above current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare AMT against industry averages and similar companies
Insider Trading & Analyst Ratings
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