Founded in 1995, American Tower Corp (AMT, Financial) is a leading independent owner, operator, and developer of multitenant communications real estate. The company's primary business includes leasing antenna space on multi-tenant communications sites to different providers. As of July 24, 2023, the company's stock price stands at $190.47, with a market cap of $88.77 billion. The stock has seen a gain of 3.02% today and a 2.62% increase over the past four weeks. AMT operates in the REITs industry, facing stiff competition from companies like Equinix Inc (EQIX, Financial), Crown Castle Inc (CCI, Financial), and Digital Realty Trust Inc (DLR, Financial).
GF Score Analysis
The GF Score is a stock performance ranking system developed by GuruFocus. It uses five aspects of valuation, which have been found to be closely correlated to the long-term performances of stocks. AMT's GF Score stands at 88 out of 100, indicating good outperformance potential. This score suggests that AMT could generate higher returns than those with lower GF Scores. 
Financial Strength Analysis
The Financial Strength Rank measures how strong a company's financial situation is. AMT's Financial Strength Rank is 3 out of 10, indicating a relatively weak financial situation. The company's interest coverage is 2.54, and its debt to revenue ratio is 4.34. The Altman Z score is 1.11, which is below the safe zone of 2.99, suggesting potential financial distress.
Profitability Rank Analysis
The Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. AMT's Profitability Rank is 9 out of 10, indicating high profitability. The company's Operating Margin is 28.54%, and its Piotroski F-Score is 5, suggesting a stable financial situation.
Growth Rank Analysis
The Growth Rank measures the growth of a company in terms of its revenue and profitability. AMT's Growth Rank is 10 out of 10, indicating strong growth in both revenue and profitability. This suggests that AMT has a high potential for future growth.
GF Value Rank Analysis
The GF Value Rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance. AMT's GF Value Rank is 8 out of 10, suggesting that the stock is fairly valued.
Momentum Rank Analysis
The Momentum Rank is determined using the standardized momentum ratio and other momentum indicators. AMT's Momentum Rank is 4 out of 10, indicating that the stock's price momentum is relatively weak.
Competitive Analysis
When compared to its main competitors, AMT holds its ground. Equinix Inc (EQIX, Financial) has a GF Score of 92, Crown Castle Inc (CCI, Financial) has a GF Score of 88, and Digital Realty Trust Inc (DLR, Financial) has a GF Score of 79. This suggests that while AMT faces stiff competition, it has the potential to outperform its competitors.
In conclusion, while AMT's financial strength could be improved, its high profitability and growth ranks, along with a fair GF Value Rank, make it a potential candidate for investors seeking good outperformance potential.
