AMT Investment Analysis Report & Stock Research, American Tower Corp.

American Tower Corporation (AMT)

AMT Stock Report

2-Year Price History

View Larger AMT Chart
NYSE:AMT
$44.01
(3/18 4:00PM)
-0.5%
Open$44.25 Mkt Cap$17.7 Billion
High$44.5 52Wk High$45.00
Low$43.74 52Wk Low$27.93
Volume3.2 Million Avg Vol 10D3.3 Million

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AMT Revenue

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at AMT through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 11.28x and 6.56x respectively.

Utilizing this range we can see that AMT’s current Price to Sales per share ratio of 10.14x is slightly above its historical average. This level of Price to Sales gives us a fairly neutral position on the shares. We would like to see a drop in the Price to Sales ratio of 13% given current sales figures before we would become more positive on a Price to Sales basis. Such a drop would put Price to Sales per share in line with AMT's weighted historical average.

AMT Cash Earnings

As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of AMT, Ockham views their current Cash Earnings as above its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for AMT to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 31.97 and a 18.52 low over the same period.

So when we look at AMT, what does this slightly higher than historical level of Price to Cash Earnings mean? From the Ockham perspective, it basically represents that the market has a higher stock price attributed to this level of Cash Earnings than compared to normal. So while we view this as a negative from a valuation perspective, it certainly doesn't mean that AMT couldn't rapidly improve in its value from other factors or a decline in stock price. The current Price to Cash Earnings level of 25.98 is 2% above the historical norm as calculated at Ockham. So a decline in stock price, or more hopefully, an increase in AMT's Cash Earnings levels would improve our outlook for the stock.

AMT Dividends

When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for AMT to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis. Although they may currently pay a dividend, our data source has no historical record of it for AMT. Since we cannot apply our historical trend analysis to dividends for AMT we have a neutral score for the dividend portion of our analysis.

Peer Comparison

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American Tower Corp. Industry Grouping

(3/18/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including AMT) 13.76 4.13 » 22.92 2.99 0.88 » 4.63 14.22% 18.08%
*10 year range does not include current year values
Chungwa Telecom Co Ltd - Shs Sponsored American Deposit Receipt Repr 10 Shs CHT $20.5 Billion $19.20 12.16 4.41 » 11.85 7.15 2.07 » 6.96 2.75% 12.68%
Magyar Telekom Telecommunications plc MTA $20.5 Billion $19.62 6.35 2.28 » 8.39 1.15 0.61 » 2.51 3.84% 13.00%
American Tower Corp. AMT $17.7 Billion $44.01 25.98 0.37 » 830.00 10.14 0.15 » 12.75 19.53% 4.31%
P T Telekom Indonesia TLK $17.6 Billion $35.83 15.07 5.01 » 20.67 3.06 1.13 » 5.53 21.39% 35.40%
Motorola, Inc. MOT $17.0 Billion $7.35 22.61 6.24 » 55.03 0.74 0.23 » 1.70 -6.79% 9.69%
Vimpel Communications ADS VIP $17.0 Billion $16.77 12.59 2.69 » 18.66 2.88 0.39 » 6.44 49.93% 19.62%
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The Latest Financial News
The most recent Stocks on Financial TV & Blogs from impactful financial news sources
Mad Money

See Why American Tower Corporation News Was Discussed on Mad Money

The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to American Tower Corporation.

As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, AMT has been less covered in the news compared to the rest of our universe of stocks. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe American Tower Corporation will perform just about the same as the index. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on AMT.

“… AMERICAN TOWER is deep within it. It's why we buy stocks that are down that are part of the broader themes. I think you'll get a chance to buy it lower because this market is ... …”

Squawk On The Street

Balance Sheet Strength at AMT Discussed on Squawk On The Street

Investors in AMT should stay up to date on developments in the company's balance sheet. RazorWire has noticed a discussion of the balance sheet recently on Squawk On The Street.

When taking into account the amount of news coverage each stock normally sees as a percentage of the total, American Tower Corporation has actually sunk a bit in comparison to the others. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards AMT and think that it will generally perform in-line with the S&P 500. The Ockham valuation currently has a Fairly Valued stance on AMT because it trades within the price range that we would expect given current market conditions and fundamentals.

“… our largest holding today is AMERICAN TOWER. It's been the fund for a number of years. It's the leading domestic provider of wireless infrastructure. …”

Mad Money

American Tower Corporation News Appeared on Mad Money

News has broken via the television and viral blogs regarding AMT, so investors should take an interest in learning what was said.

When taking into account the amount of news coverage each stock normally sees as a percentage of the total, American Tower Corporation has actually sunk a bit in comparison to the others. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards AMT and think that it will generally perform in-line with the S&P 500. The Ockham valuation currently has a Fairly Valued stance on AMT because it trades within the price range that we would expect given current market conditions and fundamentals.

“… Without mour towers like those of AMERICAN TOWER, amt, crown castle, cci and favorite sba communication, sbac, the children's dreams will be thwarted by drop calls. …”

Mad Money

Notice a Discussion Covering AMT Appeared Recently in the Financial News

News has broken via the television and viral blogs regarding AMT, so investors should take an interest in learning what was said.

The crowd at The Motley Fool does not like AMT and believes that it will Underperform. When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that American Tower Corporation has been talked about more than normal recently. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on AMT.

“… That's right, AMERICAN TOWER, crown castle, and for the more conservative investors, a smaller one, sbac. These stocks have run up big since I recommended them. …”

The Opening Bell on Fox Business

See Why American Tower Corporation News Was Discussed on The Opening Bell on Fox Business

The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to American Tower Corporation.

While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. American Tower Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; AMT has received less coverage from the financial media in business television and blogs.

“… On to AMERICAN TOWER, the mobile phone tower in talks to buy a stake in telecom. An indian company there. Shares are moving higher, cheryl: robert, thank you very much. …”

Mad Money

Notice a Discussion Covering AMT Appeared Recently in the Financial News

As always, the latest news on AMT is available to Ockham clients through RazorWire, and it was mentioned recently on Mad Money.

As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, AMT has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on AMT. The crowd at The Motley Fool does not like AMT and believes that it will Underperform.

“… I'm wonder ing ifthe multiple is too high on AMERICAN TOWER, amt. > > I was talking to my friend who writes break out stocks. This is one we've been recommending. …”

Mad Money

It's Been a Month or More Since Mad Money Discussed American Tower Corporation

There has not been much to report from AMT in the last few weeks at least, but Mad Money talked about the stock recently.

American Tower Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. We noticed recently that in comparison to all other stocks we analyze in the news; AMT has received less coverage from the financial media in business television and blogs.

“… Remember, AMERICAN TOWER and crown castle for the more conservative. Sba communications, ceragon and harris for speculators. …”

Mad Money

It's Been a Month or More Since Mad Money Discussed American Tower Corporation

It's been at least a month since we noticed any major news coverage of AMT, so the story in Mad Money may get the ball rolling.

The crowd at The Motley Fool does not like AMT and believes that it will Underperform. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on AMT. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, AMT has been less covered in the news compared to the rest of our universe of stocks.

“… Hey, that's much smaller then AMERICAN TOWER or crown castle. If I had to reinvent myself, I would have gone into the tower game. …”

Mad Money

Slow Month for News Out of AMT But Mad Money Mentions Them

There has not been much to report from AMT in the last few weeks at least, but Mad Money talked about the stock recently.

The crowd at The Motley Fool does not like AMT and believes that it will Underperform. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on AMT. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, AMT has been less covered in the news compared to the rest of our universe of stocks.

“… We can't talk to youers without mentioning AMERICAN TOWER! Hey, me, I like an company named AMERICAN TOWER. And crown castle, they are the biggest tower plays, they are up, s&p ... …”

Squawk Box

American Tower Corporation (AMT) Discussed on CNBC's Squawk Box

American Tower Corporation is in the news. Find out how this impacts AMT trading on Ockham Research.

It's still a stock picker's market. Out there, for instance, that have a surprise on the earnings and on the revenue line. Just yesterday, for instance, AMERICAN TOWER had some very impressive results. Its bond ratings were upgraded and there are many companies like that. I think if you roll up your sleefts and you still start looking at the basic, the fundamentals of companies, regardless, ironically, of rising unemployment, you can still find some nice beauties out there to start investing in >> what are a few of the other

“… panies like that. I think if you roll up your sleefts and you still start looking at the basic, the fundamentals of companies, regardless, ironically, of rising unemployment, you can still find some nice beauties out there to start investing in >> what are a few of the other …”

View All American Tower Corp. Stock News

Key Fundamentals

AMT - American Tower Corporation Fundamentals
Price (3/18 4:00PM) $44.01
Volume (3/18 4:00PM) 3.2 Million
Last Close Price $44.25
10 Day Average Volume 3.3 Million
13 Week Price Range $39.46 - $45.00
52 Week Price Range $27.93 - $45.00
LTM Revenue $1.7 Billion
 
Shares Outstanding (12/2009) 402.7 Million
Market Capitalization $17.7 Billion
Shares Held By Institutions 395.7 Million
Institutional Holders 669
% Shares Held By Institutions %
Earnings Per Share (EPS) $0.61
P/E Ratio 72.10
Book Value Per Share $8.23
 
Gross Margin 76.40%
Annual Dividend 0.00
Dividend Yield 0.00%
Beta 0.91
Fiscal Year Ends December

About American Tower Corp.

American Tower Corporation is considered to operate in the Technology sector. They specifically operate in the Diversified Communication Services business segment contained within the Telecommunications industry.

The Company is an owner, operator and developer of broadcast and wireless communications sites.