Buffett Brain · Research note
Score updated 21 May 2026
AMT· Real Estate
American Tower
American Tower's weak returns and high leverage raise serious concerns about its long-term durability and financial health.
Buffett fit
Weak fit
Owner
50
Durability
54
Management
87
Price
54
Score updated 21 May 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Real Estate stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned American Tower entirely, I'd want to ensure its cash flows remain stable over the next decade.
The full reasoning comes with a free account.
American Tower has been profitable for the last five years; however, the EPS CAGR of -1.3% raises red flags about future growth.
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Management has shown discipline with a share count CAGR of 0.96% and a yield of only 0.09%.
The full reasoning comes with a free account.
With a of 30.3 and an yield of 4.34%, the valuation is stretched.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 73.4% indicates strong profitability in operations.
- 2 of $3.78 billion shows healthy cash generation.
- 3Management quality score of 87 suggests effective .
- 4All five years of profitability highlight operational stability.
Concerns
5- 1 of 6.9% is well below the 15.6% sector top-quintile cutoff.
- 2Net debt/EBITDA of 6.51 indicates high , raising financial risk.
- 3EPS CAGR of -1.3% over five years signals potential growth challenges.
- 4Current ratio of 0.40 suggests liquidity issues in meeting short-term obligations.
Price history
$178-37.5%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
American Tower Corporation operates as a leading REIT, owning approximately 219,000 communications sites, generating $10.65 billion in revenue. The business model is largely driven by long-term leases with telecommunications companies, providing stable cash flows. The stands at 73.4%, indicating strong unit economics.
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Real Estate
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