AMTNEUTRAL

Return on Equity (ROE)

69.3%

Higher than 100% of Real Estate sector peers

Updated 1931h ago

Sector Performance

100th percentile

AMT

69.3%

Sector Median

9.8%

Sector Avg

10.9%

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Deep Analysis

American Tower's Return on Equity (ROE) of 69.3% means that for every dollar of shareholders' equity, the company generated $0.693 in net profit over the trailing twelve months—a measure of how efficiently it turns equity into earnings.

This figure sits far above the real estate sector median of 8.8%, placing American Tower in the 100th percentile among its peers. No trend data is available: the year-over-year change and quarter-over-quarter change are both listed as N/A, and there is no historical sequence beyond the single current value. The combination of an extremely high level with no trend information introduces ambiguity—the strength may reflect superior profitability, but without context on stability or direction, it carries elevated uncertainty for investors. This metric does not directly contradict the overall CAUTIOUS verdict; a very high ROE can sometimes stem from high leverage or non-recurring income, which aligns with a cautious stance rather than a bullish one.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about AMT?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does AMT's Return on Equity (ROE) compare to its sector?

AMT's Return on Equity (ROE) of 69.3% compares to a Real Estate sector median of 9.8%, placing it in the 100th percentile.

Who are AMT's closest peers by Return on Equity (ROE)?

The closest Real Estate peers by Return on Equity (ROE) include: AVB (9.1%), TRNO (10.4%), VICI (11.3%), REG (8.0%), CUBE (11.6%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.