AMTAMT
US • —
$164.24
P/E
26.51
PEG
0.45
FCF Yield
—
Rev Growth YoY
+6.3% YoY
Gross Margin
74.0%
Health Score
4/10
D/E Ratio
10.19
Confidence
LOW
Business Snapshot
American Tower Corporation is a real estate investment trust (REIT) that owns and operates a portfolio of communications real estate, primarily wireless and broadcast communications towers. The company generates revenue through long-term leasing arrangements with wireless carriers, broadcasters, and other tenants. It operates as a dominant player in the global tower infrastructure market, benefiting from the increasing demand for wireless data and network densification. Given its structure as a large-cap REIT, a defining characteristic is its capital-intensive business model that relies on substantial leverage to fund tower acquisitions and construction.
Financial Health
Gross margin stands at a robust 74.0%, while the net margin is a healthy 26.8%; however, year-over-year comparatives for gross margin are unavailable, preventing a trend analysis. The balance sheet is highly stretched, with a debt/equity ratio of 10.19x, indicating significant leverage, and a current ratio of 0.4x, reflecting weak short-term liquidity...
Risk Assessment
- DEBT / LIQUIDITY — Debt/equity of 10.19x is extremely high and a current ratio of 0.4x indicates significant short-term liquidity risk.
- VALUATION — Price/Book of 22.65x is exceptionally high, implying the market is valuing the company far beyond its tangible asset base.
- INSIDER — Insiders have sold 2 shares versus 0 buys over the last 90 days, a net selling signal that may indicate a lack of confidence at current levels.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- EARNINGS QUALITY — While the company beat estimates in 3 of the last 4 quarters, the single miss suggests estimates are not always met, introducing a minor element of uncertainty....
Gross margin stands at a robust 74.0%, while the net margin is a healthy 26.8%; however, year-over-year comparatives for gross margin are unavailable, preventing a trend analysis. The balance sheet is highly stretched, with a debt/equity ratio of 10.19x, indicating significant leverage, and a current ratio of 0.4x, reflecting weak short-term liquidity. Return on equity is a very high 78.2%, a figure amplified by the extreme leverage. Free cash flow data is not available in the payload, making it impossible to assess the company's cash generation ability or its capacity to fund the dividend. Overall, this presents a picture of a company with strong margins but a fragile capital structure that could be vulnerable in a rising interest rate environment.
- DEBT / LIQUIDITY — Debt/equity of 10.19x is extremely high and a current ratio of 0.4x indicates significant short-term liquidity risk. - VALUATION — Price/Book of 22.65x is exceptionally high, implying the market is valuing the company far beyond its tangible asset base. - INSIDER — Insiders have sold 2 shares versus 0 buys over the last 90 days, a net selling signal that may indicate a lack of confidence at current levels. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - EARNINGS QUALITY — While the company beat estimates in 3 of the last 4 quarters, the single miss suggests estimates are not always met, introducing a minor element of uncertainty.
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