AMERICAN ASSETS TRUST INC (AAT) Stock Fundamental Analysis
NYSE:AAT - New York Stock Exchange, Inc. - US0240131047 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to AAT. AAT was compared to 129 industry peers in the Diversified REITs industry. AAT has only an average score on both its financial health and profitability. AAT is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
AAT had positive earnings in the past year.
In the past year AAT had a positive cash flow from operations.
AAT had positive earnings in each of the past 5 years.
AAT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.74%, AAT is in the better half of the industry, outperforming 65.12% of the companies in the same industry.
AAT's Return On Equity of 4.83% is fine compared to the rest of the industry. AAT outperforms 70.54% of its industry peers.
AAT has a better Return On Invested Capital (3.21%) than 61.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AAT is in line with the industry average of 3.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.74% | ||
| ROE | 4.83% | ||
| ROIC | 3.21% |
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's Profit Margin of 12.41% is fine compared to the rest of the industry. AAT outperforms 68.22% of its industry peers.
AAT's Profit Margin has been stable in the last couple of years.
The Operating Margin of AAT (28.22%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of AAT has declined.
AAT has a worse Gross Margin (63.37%) than 63.57% of its industry peers.
AAT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.22% | ||
| PM (TTM) | 12.41% | ||
| GM | 63.37% |
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.
Compared to 5 years ago, AAT has more shares outstanding
The debt/assets ratio for AAT is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.64, we must say that AAT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of AAT (0.64) is comparable to the rest of the industry.
AAT has a debt to FCF ratio of 14.69. This is a negative value and a sign of low solvency as AAT would need 14.69 years to pay back of all of its debts.
AAT's Debt to FCF ratio of 14.69 is amongst the best of the industry. AAT outperforms 83.72% of its industry peers.
AAT has a Debt/Equity ratio of 1.71. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.71, AAT is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | 14.69 | ||
| Altman-Z | 0.64 |
ROIC/WACC0.53
WACC6.06%
2.3 Liquidity
A Current Ratio of 4.75 indicates that AAT has no problem at all paying its short term obligations.
AAT has a Current ratio of 4.75. This is amongst the best in the industry. AAT outperforms 95.35% of its industry peers.
AAT has a Quick Ratio of 4.75. This indicates that AAT is financially healthy and has no problem in meeting its short term obligations.
AAT's Quick ratio of 4.75 is amongst the best of the industry. AAT outperforms 95.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.75 | ||
| Quick Ratio | 4.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.10% over the past year.
Measured over the past 5 years, AAT shows a small growth in Earnings Per Share. The EPS has been growing by 2.01% on average per year.
The Revenue has been growing slightly by 3.78% in the past year.
AAT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.54% yearly.
EPS 1Y (TTM)13.1%
EPS 3Y31.27%
EPS 5Y2.01%
EPS Q2Q%-11.76%
Revenue 1Y (TTM)3.78%
Revenue growth 3Y6.8%
Revenue growth 5Y4.54%
Sales Q2Q%0.86%
3.2 Future
Based on estimates for the next years, AAT will show a decrease in Earnings Per Share. The EPS will decrease by -2.18% on average per year.
AAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.65% yearly.
EPS Next Y-47.91%
EPS Next 2Y-2.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.45%
Revenue Next 2Y2.65%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.45, which indicates a rather expensive current valuation of AAT.
Based on the Price/Earnings ratio, AAT is valued a bit cheaper than 79.84% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. AAT is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 43.10, AAT can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, AAT is valued a bit cheaper than the industry average as 68.22% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of AAT to the average of the S&P500 Index (22.10), we can say AAT is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.45 | ||
| Fwd PE | 43.1 |
4.2 Price Multiples
AAT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AAT is cheaper than 72.87% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AAT is valued cheaply inside the industry as 93.02% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.53 | ||
| EV/EBITDA | 11.34 |
4.3 Compensation for Growth
AAT's earnings are expected to decrease with -2.18% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)11.17
EPS Next 2Y-2.18%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.36%, AAT is a good candidate for dividend investing.
In the last 3 months the price of AAT has falen by -23.11%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
AAT's Dividend Yield is a higher than the industry average which is at 19.22.
Compared to an average S&P500 Dividend Yield of 2.33, AAT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.36% |
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
181.99% of the earnings are spent on dividend by AAT. 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.
DP181.99%
EPS Next 2Y-2.18%
EPS Next 3YN/A
21.33
-0.06 (-0.28%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners93.45%
Inst Owner Change0.73%
Ins Owners1.82%
Ins Owner Change20.4%
Market Cap1.30B
Analysts48
Price Target23.46 (9.99%)
Short Float %1.16%
Short Ratio2.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.36% |
Yearly Dividend1.69
Dividend Growth(5Y)2.45%
DP181.99%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)53.88%
Min EPS beat(2)-4.4%
Max EPS beat(2)112.16%
EPS beat(4)3
Avg EPS beat(4)42.77%
Min EPS beat(4)-4.4%
Max EPS beat(4)112.16%
EPS beat(8)7
Avg EPS beat(8)40.37%
EPS beat(12)9
Avg EPS beat(12)31.65%
EPS beat(16)11
Avg EPS beat(16)11.12%
Revenue beat(2)2
Avg Revenue beat(2)4.79%
Min Revenue beat(2)0.39%
Max Revenue beat(2)9.19%
Revenue beat(4)3
Avg Revenue beat(4)2.4%
Min Revenue beat(4)-0.83%
Max Revenue beat(4)9.19%
Revenue beat(8)7
Avg Revenue beat(8)2.75%
Revenue beat(12)10
Avg Revenue beat(12)2.77%
Revenue beat(16)14
Avg Revenue beat(16)3.39%
PT rev (1m)-11.54%
PT rev (3m)-8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.37%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.45 | ||
| Fwd PE | 43.1 | ||
| P/S | 2.85 | ||
| P/FCF | 9.53 | ||
| P/OCF | 6.3 | ||
| P/B | 1.11 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 11.34 |
EPS(TTM)0.95
EY4.45%
EPS(NY)0.49
Fwd EY2.32%
FCF(TTM)2.24
FCFY10.5%
OCF(TTM)3.39
OCFY15.88%
SpS7.49
BVpS19.23
TBVpS18.98
PEG (NY)N/A
PEG (5Y)11.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.74% | ||
| ROE | 4.83% | ||
| ROCE | 4.06% | ||
| ROIC | 3.21% | ||
| ROICexc | 3.71% | ||
| ROICexgc | 3.78% | ||
| OM | 28.22% | ||
| PM (TTM) | 12.41% | ||
| GM | 63.37% | ||
| FCFM | 29.9% |
ROA(3y)1.63%
ROA(5y)1.36%
ROE(3y)4.2%
ROE(5y)3.41%
ROIC(3y)3.22%
ROIC(5y)2.99%
ROICexc(3y)3.44%
ROICexc(5y)3.17%
ROICexgc(3y)3.52%
ROICexgc(5y)3.25%
ROCE(3y)4.08%
ROCE(5y)3.79%
ROICexcg growth 3Y9.09%
ROICexcg growth 5Y1.31%
ROICexc growth 3Y9.26%
ROICexc growth 5Y1.53%
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%
F-Score6
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.71 | ||
| Debt/FCF | 14.69 | ||
| Debt/EBITDA | 7.89 | ||
| Cap/Depr | 55.96% | ||
| Cap/Sales | 15.33% | ||
| Interest Coverage | 2.01 | ||
| Cash Conversion | 81.33% | ||
| Profit Quality | 241.03% | ||
| Current Ratio | 4.75 | ||
| Quick Ratio | 4.75 | ||
| Altman-Z | 0.64 |
F-Score6
WACC6.06%
ROIC/WACC0.53
Cap/Depr(3y)84.76%
Cap/Depr(5y)115.74%
Cap/Sales(3y)23.91%
Cap/Sales(5y)34.48%
Profit Quality(3y)165.81%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.1%
EPS 3Y31.27%
EPS 5Y2.01%
EPS Q2Q%-11.76%
EPS Next Y-47.91%
EPS Next 2Y-2.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.78%
Revenue growth 3Y6.8%
Revenue growth 5Y4.54%
Sales Q2Q%0.86%
Revenue Next Year3.45%
Revenue Next 2Y2.65%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y6.16%
EBIT growth 3Y8.95%
EBIT growth 5Y2.59%
EBIT Next Year77.48%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y29.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y9.72%
OCF growth 3Y7.16%
OCF growth 5Y6.13%