AMERICAN ASSETS TRUST INC (AAT) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:AAT • US0240131047
17.97 USD
-0.09 (-0.5%)
Last: Feb 2, 2026, 01:54 PM
AAT gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 124 industry peers in the Diversified REITs industry. There are concerns on the financial health of AAT while its profitability can be described as average. AAT does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- AAT had positive earnings in the past year.
- AAT had a positive operating cash flow in the past year.
- Each year in the past 5 years AAT has been profitable.
- In the past 5 years AAT always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 2.09%, AAT is doing good in the industry, outperforming 65.32% of the companies in the same industry.
- AAT has a better Return On Equity (5.26%) than 66.13% of its industry peers.
- AAT has a Return On Invested Capital of 3.01%. This is comparable to the rest of the industry: AAT outperforms 59.68% of its industry peers.
- AAT had an Average Return On Invested Capital over the past 3 years of 3.22%. This is in line with the industry average of 3.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.09% | ||
| ROE | 5.26% | ||
| ROIC | 3.01% |
ROA(3y)1.63%
ROA(5y)1.36%
ROE(3y)4.2%
ROE(5y)3.41%
ROIC(3y)3.22%
ROIC(5y)2.99%
1.3 Margins
- AAT has a Profit Margin of 13.99%. This is in the better half of the industry: AAT outperforms 61.29% of its industry peers.
- In the last couple of years the Profit Margin of AAT has remained more or less at the same level.
- AAT has a Operating Margin (24.63%) which is comparable to the rest of the industry.
- AAT's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 61.60%, AAT is doing worse than 64.52% of the companies in the same industry.
- In the last couple of years the Gross Margin of AAT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.63% | ||
| PM (TTM) | 13.99% | ||
| GM | 61.6% |
OM growth 3Y2.01%
OM growth 5Y-1.87%
PM growth 3Y17.96%
PM growth 5Y-0.09%
GM growth 3Y-1.09%
GM growth 5Y-0.21%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AAT is destroying value.
- The number of shares outstanding for AAT has been increased compared to 1 year ago.
- The number of shares outstanding for AAT has been increased compared to 5 years ago.
- Compared to 1 year ago, AAT has a worse debt to assets ratio.
2.2 Solvency
- AAT has an Altman-Z score of 0.52. This is a bad value and indicates that AAT is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of AAT (0.52) is comparable to the rest of the industry.
- AAT has a debt to FCF ratio of 66.24. This is a negative value and a sign of low solvency as AAT would need 66.24 years to pay back of all of its debts.
- AAT's Debt to FCF ratio of 66.24 is fine compared to the rest of the industry. AAT outperforms 68.55% of its industry peers.
- A Debt/Equity ratio of 1.44 is on the high side and indicates that AAT has dependencies on debt financing.
- AAT has a Debt to Equity ratio (1.44) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 66.24 | ||
| Altman-Z | 0.52 |
ROIC/WACC0.52
WACC5.83%
2.3 Liquidity
- AAT has a Current Ratio of 1.61. This is a normal value and indicates that AAT is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Current ratio value of 1.61, AAT is doing good in the industry, outperforming 75.81% of the companies in the same industry.
- A Quick Ratio of 1.61 indicates that AAT should not have too much problems paying its short term obligations.
- AAT has a better Quick ratio (1.61) than 76.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
- The earnings per share for AAT have decreased strongly by -71.13% in the last year.
- AAT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.01% yearly.
- The Revenue has decreased by -3.79% in the past year.
- Measured over the past years, AAT shows a small growth in Revenue. The Revenue has been growing by 4.54% on average per year.
EPS 1Y (TTM)-71.13%
EPS 3Y31.27%
EPS 5Y2.01%
EPS Q2Q%-75%
Revenue 1Y (TTM)-3.79%
Revenue growth 3Y6.8%
Revenue growth 5Y4.54%
Sales Q2Q%-10.77%
3.2 Future
- AAT is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -24.18% yearly.
- Based on estimates for the next years, AAT will show a decrease in Revenue. The Revenue will decrease by -0.45% on average per year.
EPS Next Y-59.6%
EPS Next 2Y-32.39%
EPS Next 3Y-24.18%
EPS Next 5YN/A
Revenue Next Year-4.22%
Revenue Next 2Y0.16%
Revenue Next 3Y-0.45%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 64.18, the valuation of AAT can be described as expensive.
- AAT's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of AAT to the average of the S&P500 Index (28.32), we can say AAT is valued expensively.
- Based on the Price/Forward Earnings ratio of 41.38, the valuation of AAT can be described as expensive.
- AAT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AAT is cheaper than 65.32% of the companies in the same industry.
- AAT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.18 | ||
| Fwd PE | 41.38 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AAT indicates a somewhat cheap valuation: AAT is cheaper than 78.23% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, AAT is valued a bit cheaper than the industry average as 70.97% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.15 | ||
| EV/EBITDA | 11.32 |
4.3 Compensation for Growth
- AAT's earnings are expected to decrease with -24.18% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)31.92
EPS Next 2Y-32.39%
EPS Next 3Y-24.18%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 7.55%, AAT is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 6.98, AAT pays a bit more dividend than its industry peers.
- AAT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.55% |
5.2 History
- The dividend of AAT has a limited annual growth rate of 2.45%.
- AAT has been paying a dividend for at least 10 years, so it has a reliable track record.
- AAT has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.45%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- AAT pays out 170.43% of its income as dividend. This is not a sustainable payout ratio.
- AAT's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP170.43%
EPS Next 2Y-32.39%
EPS Next 3Y-24.18%
AMERICAN ASSETS TRUST INC / AAT FAQ
What is the fundamental rating for AAT stock?
ChartMill assigns a fundamental rating of 3 / 10 to AAT.
What is the valuation status of AMERICAN ASSETS TRUST INC (AAT) stock?
ChartMill assigns a valuation rating of 2 / 10 to AMERICAN ASSETS TRUST INC (AAT). This can be considered as Overvalued.
What is the profitability of AAT stock?
AMERICAN ASSETS TRUST INC (AAT) has a profitability rating of 5 / 10.
Can you provide the financial health for AAT stock?
The financial health rating of AMERICAN ASSETS TRUST INC (AAT) is 3 / 10.
What is the expected EPS growth for AMERICAN ASSETS TRUST INC (AAT) stock?
The Earnings per Share (EPS) of AMERICAN ASSETS TRUST INC (AAT) is expected to decline by -59.6% in the next year.