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American Tower Corporation

Data period: Annual Quarterly Graham uses annual
NYSE · Real Estate
American Tower Corporation
AMT · REIT - Specialty
$176.05
▼ -5.04 (-2.78%)
Cached · 10 min
Overall Grade
D
Defensive
C
Enterprising
Profitability
A
Gross Profit Margin 74.3%
Operating Margin 45.3%
Net Income Margin 31.4%
Fin. Health
F
Years to Pay Off Debt 52.5 yrs
Working Capital vs Long-Term Debt -$38.0B
Working Capital -$6.8B
Valuation
F
Margin of Safety 0.0%
Price-to-Book 23.28x
Cash Flow
C
Free Cash Flow $951M
CapEx % of Net Income 52.3%
Owner Earnings $1.8B
About American Tower Corporation
American Tower Corporation is one of the largest global real estate investment trusts. It is a leading independent owner, operator and developer of multitenant communications real estate. The Company's primary business is the leasing of space on communications sites to wireless service providers, radio and television broadcast companies, wireless data providers, government agencies and municipalities and tenants in a few other industries. The Company refers to this business, inclusive of its data center business discussed below, as its property operations. Additionally, the Company offers tower-related services in the United States, which the Company refers to as its services operations. These services include site application, zoning and permitting, structural and mount analyses, and construction management services, together with program management offerings that support customer deployment needs from project scoping through construction. The Company's services operations primarily support the Company's site leasing business, including through the addition of new tenants and equipment on its sites. The Company's customers include its tenants, licensees and other payers. American Tower Corporation was incorporated in 1995 in Delaware and is based in Massachusetts, Boston.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Cap $82.0B
Enterprise Value $136.1B
P/E (TTM) 28.40
Dividend Yield 3.80%
Exchange NYSE
Gross Profit 74.3%
Operating Margin 45.3%
Net Margin 31.4%
Sector Real Estate
Industry REIT - Specialty
Employees 4866
Country United States
📖
Full Graham Analysis

Mr. Market is currently offering American Tower Corporation at $176.05.

The business passes only 2 of 7 of Graham's defensive criteria — well below his required standard.

At $176.05, the stock trades at a 895% premium to its Graham Number of $17.69. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics
Income Highlights
Metric Q1 2026 Q4 2025 Q4 2024
Gross Profit % 74.3% 73.9% N/A
Operating Margin % 45.3% 45.4% N/A
Net Income % 31.4% 30.0% N/A
Diluted EPS 1.84 1.75 N/A
Balance Sheet Highlights
Metric Q1 2026 Q4 2025 Q4 2024
Total Assets $63.2B $63.2B N/A
Total Debt $45.1B $45.0B N/A
Working Capital -$6.8B -$4.2B N/A
Years to Pay Debt 52.51 54.79 N/A
Cash Flow Highlights
Metric Q1 2026 Q4 2025 Q4 2024
Free Cash Flow $951M $848M N/A
Owner Earnings $1.8B $1.9B N/A
CapEx % of Net Income 52.3% 70.6% N/A
📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $2.6B ▲ $2.7B +6.8%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: 75.2% ▲ 74.3% -0.9pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: 48.4% ▼ 45.3% -3.1pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: 19.1% ▲ 31.4% +12.3pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
✅ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$2.7B/qtr (≈$10.9B ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
0.30x current ratio
vs ≥ 2.0x
✅ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
$951M
vs Positive
Operating Cash Flow
$1.4B
Latest quarter · Buffett's cash reality check
ROIC
1.8%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
8.1x
Net Assets: $10.2B
⚠️ Revenue grew vs prior year but operating margin contracted. Possible explanations: deliberate investment in growth (hiring, marketing, R&D), input cost inflation, or pricing pressure from competition. Buffett distinguishes between spending that builds moat vs. spending that doesn't.
Peers & Industry
No auto-detected peers for REIT - Specialty. You can manually compare AMT against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
0.08%
Low — management has little skin in the game
Return on Equity (ROE)
24.4%
Excellent — management generates strong returns on equity
Return on Assets (ROA)
1.4%
Poor — assets are not generating adequate returns
Share Buybacks (Latest Year)
$365M
Management is returning capital to shareholders via buybacks
Debt Trend YoY
+0.4% YoY
Debt is roughly stable
Leadership Team
Steven Vondran
President, CEO & Director
Age 54
Pay: $3,325,757
0.387% of net income
Rodney Smith
Executive VP, CFO & Treasurer
Age 59
Pay: $1,647,286
0.192% of net income
Eugene Noel
Executive VP & COO
Age 56
Pay: $1,581,269
0.184% of net income
Spencer Harris Kurn
Senior Vice President of Investor Relations
Julian Plumstead
Senior Vice President of M&A and Business Development - Europe, Africa and Latin America
Top Institutional Holders
Institution % Owned Shares
Blackrock Inc. 9.65% 44,954,137
Vanguard Capital Management LLC 6.52% 30,362,380
Vanguard Portfolio Management LLC 5.92% 27,596,159
State Street Corporation 4.60% 21,434,609
JPMORGAN CHASE & CO 3.25% 15,128,367
Geode Capital Management, LLC 2.99% 13,933,628
Cohen & Steers Inc. 2.71% 12,619,866
FMR, LLC 2.43% 11,317,048
⚠️ Very high debt-to-equity — leverage risk
⚠️ Current ratio below 1 — liquidity risk
Risk Analysis
Beta (Market Risk)
0.89
Low volatility — more stable than the market
Short Interest
2.2% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
4.45x
High leverage — significant financial risk
Current Ratio
0.30x
Weak liquidity — current liabilities exceed current assets
52-Week Price Range
Low: $165.08 Current: $176.05 High: $234.33
Currently at 16% of 52-week range

American Tower Corporation (AMT) fundamental analysis — Overall grade D based on profitability, financial health, valuation and cash flow. Graham's Fair Value: $17.69. Margin of safety: 0%. Gross profit margin: 74.3%. Operating margin: 45.3%. Net margin: 31.4%. Market cap: $82.0B. Sector: Real Estate. Industry: REIT - Specialty. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett principles.

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