AMERICAN ASSETS TRUST INC (AAT) Stock Fundamental Analysis
NYSE:AAT - New York Stock Exchange, Inc. - US0240131047 - REIT
Overall AAT gets a fundamental rating of 5 out of 10. We evaluated AAT against 129 industry peers in the Diversified REITs industry. AAT has only an average score on both its financial health and profitability. AAT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year AAT was profitable.
AAT had a positive operating cash flow in the past year.
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
AAT has a better Return On Assets (1.72%) than 62.70% of its industry peers.
AAT has a better Return On Equity (4.91%) than 69.84% of its industry peers.
AAT has a Return On Invested Capital of 3.09%. This is comparable to the rest of the industry: AAT outperforms 58.73% of its industry peers.
AAT had an Average Return On Invested Capital over the past 3 years of 3.06%. This is in line with the industry average of 3.11%.
The last Return On Invested Capital (3.09%) for AAT is above the 3 year average (3.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.72% | ||
| ROE | 4.91% | ||
| ROIC | 3.09% |
ROA(3y)1.36%
ROA(5y)1.34%
ROE(3y)3.35%
ROE(5y)3.14%
ROIC(3y)3.06%
ROIC(5y)3.01%
1.3 Margins
Looking at the Profit Margin, with a value of 12.76%, AAT is in the better half of the industry, outperforming 65.08% of the companies in the same industry.
AAT's Profit Margin has improved in the last couple of years.
AAT has a Operating Margin (28.14%) which is in line with its industry peers.
In the last couple of years the Operating Margin of AAT has grown nicely.
AAT has a worse Gross Margin (63.33%) than 65.87% of its industry peers.
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 | 28.14% | ||
| PM (TTM) | 12.76% | ||
| GM | 63.33% |
OM growth 3Y2.39%
OM growth 5Y2.81%
PM growth 3Y12.42%
PM growth 5Y13.91%
GM growth 3Y-1.05%
GM growth 5Y-0.14%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AAT is destroying value.
AAT has more shares outstanding than it did 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
Based on the Altman-Z score of 0.71, we must say that AAT is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.71, AAT is in line with its industry, outperforming 55.56% of the companies in the same industry.
The Debt to FCF ratio of AAT is 15.57, which is on the high side as it means it would take AAT, 15.57 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 15.57, AAT belongs to the top of the industry, outperforming 80.16% of the companies in the same industry.
A Debt/Equity ratio of 1.78 is on the high side and indicates that AAT has dependencies on debt financing.
The Debt to Equity ratio of AAT (1.78) is worse than 69.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.78 | ||
| Debt/FCF | 15.57 | ||
| Altman-Z | 0.71 |
ROIC/WACC0.52
WACC5.95%
2.3 Liquidity
AAT has a Current Ratio of 5.30. This indicates that AAT is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 5.30, AAT belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
AAT has a Quick Ratio of 5.30. This indicates that AAT is financially healthy and has no problem in meeting its short term obligations.
AAT has a Quick ratio of 5.30. This is amongst the best in the industry. AAT outperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.3 | ||
| Quick Ratio | 5.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.87% over the past year.
The Earnings Per Share has been growing by 14.87% on average over the past years. This is quite good.
AAT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.10%.
AAT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.92% yearly.
EPS 1Y (TTM)16.87%
EPS 3Y22.23%
EPS 5Y14.87%
EPS Q2Q%40%
Revenue 1Y (TTM)5.1%
Revenue growth 3Y8.58%
Revenue growth 5Y5.92%
Sales Q2Q%10.44%
3.2 Future
AAT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.12% yearly.
AAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.39% yearly.
EPS Next Y7.01%
EPS Next 2Y-22.85%
EPS Next 3Y1.12%
EPS Next 5YN/A
Revenue Next Year4.17%
Revenue Next 2Y4.24%
Revenue Next 3Y3.39%
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
Based on the Price/Earnings ratio of 25.86, the valuation of AAT can be described as expensive.
Based on the Price/Earnings ratio, AAT is valued a bit cheaper than the industry average as 74.60% of the companies are valued more expensively.
AAT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.29.
AAT is valuated quite expensively with a Price/Forward Earnings ratio of 50.17.
AAT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AAT is cheaper than 61.11% 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 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.86 | ||
| Fwd PE | 50.17 |
4.2 Price Multiples
AAT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AAT is cheaper than 73.02% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AAT is valued cheaply inside the industry as 89.68% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.27 | ||
| EV/EBITDA | 12.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AAT does not grow enough to justify the current Price/Earnings ratio.
AAT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.69
PEG (5Y)1.74
EPS Next 2Y-22.85%
EPS Next 3Y1.12%
5. Dividend
5.1 Amount
AAT has a Yearly Dividend Yield of 5.42%, which is a nice return.
Compared to an average industry Dividend Yield of 18.51, AAT has a dividend in line with its industry peers.
AAT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
5.2 History
The dividend of AAT has a limited annual growth rate of 2.37%.
AAT has paid a dividend for at least 10 years, which is a reliable track record.
AAT has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.37%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
176.56% of the earnings are spent on dividend by AAT. This is not a sustainable payout ratio.
AAT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP176.56%
EPS Next 2Y-22.85%
EPS Next 3Y1.12%
AMERICAN ASSETS TRUST INC
NYSE:AAT (1/21/2025, 8:04:00 PM)
After market: 25.08 0 (0%)25.08
+0.27 (+1.09%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners93.27%
Inst Owner Change0.01%
Ins Owners1.49%
Ins Owner Change20.4%
Market Cap1.53B
Analysts48
Price Target26.52 (5.74%)
Short Float %1.24%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
Yearly Dividend1.67
Dividend Growth(5Y)2.37%
DP176.56%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)18.52%
Min EPS beat(2)-4.4%
Max EPS beat(2)41.44%
EPS beat(4)3
Avg EPS beat(4)16.02%
Min EPS beat(4)-4.4%
Max EPS beat(4)41.44%
EPS beat(8)6
Avg EPS beat(8)26.23%
EPS beat(12)9
Avg EPS beat(12)23.59%
EPS beat(16)10
Avg EPS beat(16)0.07%
Revenue beat(2)2
Avg Revenue beat(2)5.01%
Min Revenue beat(2)0.83%
Max Revenue beat(2)9.19%
Revenue beat(4)3
Avg Revenue beat(4)3.01%
Min Revenue beat(4)-0.83%
Max Revenue beat(4)9.19%
Revenue beat(8)6
Avg Revenue beat(8)2.5%
Revenue beat(12)10
Avg Revenue beat(12)3.47%
Revenue beat(16)13
Avg Revenue beat(16)3.08%
PT rev (1m)4%
PT rev (3m)18.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-43.33%
EPS NY rev (1m)0%
EPS NY rev (3m)18.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.2%
Revenue NY rev (1m)0.91%
Revenue NY rev (3m)3.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.86 | ||
| Fwd PE | 50.17 | ||
| P/S | 3.34 | ||
| P/FCF | 11.27 | ||
| P/OCF | 7.44 | ||
| P/B | 1.29 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 12.26 |
EPS(TTM)0.97
EY3.87%
EPS(NY)0.5
Fwd EY1.99%
FCF(TTM)2.22
FCFY8.87%
OCF(TTM)3.37
OCFY13.44%
SpS7.5
BVpS19.48
TBVpS19.21
PEG (NY)3.69
PEG (5Y)1.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.72% | ||
| ROE | 4.91% | ||
| ROCE | 3.91% | ||
| ROIC | 3.09% | ||
| ROICexc | 3.68% | ||
| ROICexgc | 3.76% | ||
| OM | 28.14% | ||
| PM (TTM) | 12.76% | ||
| GM | 63.33% | ||
| FCFM | 29.65% |
ROA(3y)1.36%
ROA(5y)1.34%
ROE(3y)3.35%
ROE(5y)3.14%
ROIC(3y)3.06%
ROIC(5y)3.01%
ROICexc(3y)3.15%
ROICexc(5y)3.12%
ROICexgc(3y)3.23%
ROICexgc(5y)3.21%
ROCE(3y)3.87%
ROCE(5y)3.81%
ROICexcg growth 3Y8.03%
ROICexcg growth 5Y2.74%
ROICexc growth 3Y8.13%
ROICexc growth 5Y2.7%
OM growth 3Y2.39%
OM growth 5Y2.81%
PM growth 3Y12.42%
PM growth 5Y13.91%
GM growth 3Y-1.05%
GM growth 5Y-0.14%
F-Score6
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.78 | ||
| Debt/FCF | 15.57 | ||
| Debt/EBITDA | 8.33 | ||
| Cap/Depr | 56.02% | ||
| Cap/Sales | 15.28% | ||
| Interest Coverage | 2.01 | ||
| Cash Conversion | 81.09% | ||
| Profit Quality | 232.38% | ||
| Current Ratio | 5.3 | ||
| Quick Ratio | 5.3 | ||
| Altman-Z | 0.71 |
F-Score6
WACC5.95%
ROIC/WACC0.52
Cap/Depr(3y)154.7%
Cap/Depr(5y)228.47%
Cap/Sales(3y)46.22%
Cap/Sales(5y)63.93%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.87%
EPS 3Y22.23%
EPS 5Y14.87%
EPS Q2Q%40%
EPS Next Y7.01%
EPS Next 2Y-22.85%
EPS Next 3Y1.12%
EPS Next 5YN/A
Revenue 1Y (TTM)5.1%
Revenue growth 3Y8.58%
Revenue growth 5Y5.92%
Sales Q2Q%10.44%
Revenue Next Year4.17%
Revenue Next 2Y4.24%
Revenue Next 3Y3.39%
Revenue Next 5YN/A
EBIT growth 1Y7.66%
EBIT growth 3Y11.18%
EBIT growth 5Y8.9%
EBIT Next Year84.64%
EBIT Next 3Y22.25%
EBIT Next 5YN/A
FCF growth 1Y8069.65%
FCF growth 3Y18.54%
FCF growth 5Y5.2%
OCF growth 1Y14.32%
OCF growth 3Y14.12%
OCF growth 5Y6.7%