AMT - Embedded Expectations Analysis - 2019 07 23
American Tower Corporation (AMT:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) Earnings, with a 34.1x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about planned Capex, international operations, and cash flow growth.Specifically, management may lack confidence in the sustainability of significant network spending in key markets like India, Mexico, and South Africa, and may have concerns about the potential of new assets acquired in international markets. Moreover, they might be concerned about their ability to maintain growth in adjusted EBITDA and AFFO, and might be exaggerating their optimism related to core U.S. business outlook. Lastly, they may be concerned about maintenance Capex reverting from low levels, and may lack confidence in their ability to sustain free cash flow CAGR.
American Tower is a holding company. Through its subsidiaries, the company is a real estate investment trusts and an 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 number of other industries. The company also provides tower-related services, including site acquisition, zoning and permitting and structural analysis, which primarily support the company's site leasing business, including the addition of new tenants and equipment on its sites.
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