American Beneish M Score

AMT
 Stock
  

USD 220.08  1.83  0.84%   

This module uses fundamental data of American Tower to approximate the value of its Beneish M Score. American Tower M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please continue to American Tower Piotroski F Score and American Tower Altman Z Score analysis.
  
Total Debt is likely to gain to about 56.1 B in 2022. Debt Current is likely to gain to about 5.7 B in 2022. American Tower Revenue to Assets are comparatively stable at the moment as compared to the past year. American Tower reported Revenue to Assets of 0.13 in 2021. Total Assets Per Share is likely to gain to 165.45 in 2022, whereas Accounts Payable Turnover is likely to drop 40.06 in 2022.
At this time, it appears that American Tower Corp is an unlikely manipulator. The earnings manipulation may begin if American Tower's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by American Tower executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of American Tower's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.66
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.74Focus
Asset Quality1.0Focus
Expense Coverage0.86Focus
Gross Margin Strengs1.11Focus
Accruals Factor0.86Focus
Depreciation Resistance1.21Focus
Net Sales Growth1.08Focus
Financial Leverage Condition1.0Focus

American Tower Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if American Tower's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense754 M811.6 M
Significantly Down
Increasing
Slightly volatile
Revenues10.1 B9.4 B
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables583.9 M728.9 M
Significantly Down
Increasing
Slightly volatile
Property Plant and Equipment Net31.3 B29 B
Significantly Up
Increasing
Slightly volatile
Operating Income3.4 B3.1 B
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations5.2 B4.8 B
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current55.8 B51.8 B
Significantly Up
Increasing
Slightly volatile
Current Liabilities9.8 B9.1 B
Significantly Up
Increasing
Slightly volatile
Total Liabilities69.9 B64.8 B
Significantly Up
Increasing
Slightly volatile
Investments Non Current468.5 M400.9 M
Fairly Up
Decreasing
Very volatile
Investments Current923.7 K900 K
Fairly Up
Decreasing
Slightly volatile
Investments470.7 M400.9 M
Fairly Up
Decreasing
Very volatile
Gross Margin79.4871.3367
Moderately Up
Decreasing
Stable
Depreciation Amortization and Accretion2.1 B2.3 B
Fairly Down
Increasing
Slightly volatile
Debt Non Current50.4 B46.7 B
Significantly Up
Increasing
Slightly volatile
Debt Current5.7 B5.3 B
Significantly Up
Increasing
Slightly volatile
Total Debt56.1 B52 B
Significantly Up
Increasing
Slightly volatile
Assets Non Current52.3 B66.2 B
Significantly Down
Increasing
Slightly volatile
Current AssetsB3.7 B
Significantly Up
Increasing
Slightly volatile
Total Assets75.4 B69.9 B
Significantly Up
Increasing
Slightly volatile

American Tower Corp Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between American Tower's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards American Tower in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find American Tower's degree of accounting gimmicks and manipulations.

About American Tower Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

3.12 Billion

American Tower Operating Expenses is comparatively stable at the moment as compared to the past year. American Tower reported Operating Expenses of 3.54 Billion in 2021

American Tower Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as American Tower. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues6.66 B7.44 B7.58 B8.04 B9.36 B10.1 B
Total Assets33.21 B33.01 B42.8 B47.23 B69.89 B75.41 B
Current Assets2.04 B2.39 B2.55 B2.91 B3.73 B4.02 B
Assets Non Current31.18 B30.63 B40.25 B44.33 B66.16 B52.29 B
Total Liabilities26.97 B27.67 B37.75 B43.14 B64.81 B69.92 B
Current Liabilities2.51 B4.69 B5.49 B3.66 B9.07 B9.78 B
Total Debt20.21 B21.16 B31.06 B36.71 B52.01 B56.11 B
Debt Current774.8 M2.75 B3.42 B1.33 B5.28 B5.7 B
Debt Non Current19.43 B18.41 B27.64 B35.38 B46.73 B50.42 B
Operating Income2 B1.91 B2.69 B2.89 B3.13 B3.38 B
Investments951.1 M962.6 M406.4 M400.1 M400.9 M470.73 M
Gross Margin69.1470.7370.7672.371.3479.48

American Tower ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, American Tower's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to American Tower's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About American Tower Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze American Tower Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of American Tower using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of American Tower Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
American Tower Corporation, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of approximately 219,000 communications sites. For more information about American Tower, please visit the Earnings Materials and Investor Presentations sections of our investor relations website at www.americantower.com. American Tower operates under REITSpecialty classification in the United States and is traded on New York Stock Exchange. It employs 6378 people.

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Our tools can tell you how much better you can do entering a position in American Tower without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Trading with American Tower

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if American Tower position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American Tower will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to American Tower could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Tower when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back American Tower - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling American Tower Corp to buy it.
The correlation of American Tower is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as American Tower moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Tower Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for American Tower can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Please continue to American Tower Piotroski F Score and American Tower Altman Z Score analysis. You can also try Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

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When running American Tower Corp price analysis, check to measure American Tower's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American Tower is operating at the current time. Most of American Tower's value examination focuses on studying past and present price action to predict the probability of American Tower's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move American Tower's price. Additionally, you may evaluate how the addition of American Tower to your portfolios can decrease your overall portfolio volatility.
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Is American Tower's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Tower. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Tower listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.14
Market Capitalization
102.5 B
Quarterly Revenue Growth YOY
0.088
Return On Assets
0.0312
Return On Equity
0.26
The market value of American Tower Corp is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Tower's value that differs from its market value or its book value, called intrinsic value, which is American Tower's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Tower's market value can be influenced by many factors that don't directly affect American Tower's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Tower's value and its price as these two are different measures arrived at by different means. Investors typically determine American Tower value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Tower's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.