AMERICAN ASSETS TRUST INC (AAT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AAT - US0240131047 - REIT
17.98 USD
-0.13 (-0.72%)
17.98 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to AAT. AAT was compared to 124 industry peers in the Diversified REITs industry. While AAT is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
- Each year in the past 5 years AAT had a positive operating cash flow.
1.2 Ratios
- AAT's Return On Assets of 2.09% is fine compared to the rest of the industry. AAT outperforms 64.80% of its industry peers.
- The Return On Equity of AAT (5.26%) is better than 65.60% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 3.01%, AAT is in line with its industry, outperforming 59.20% of the companies in the same industry.
- 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
- Looking at the Profit Margin, with a value of 13.99%, AAT is in the better half of the industry, outperforming 60.80% of the companies in the same industry.
- In the last couple of years the Profit Margin of AAT has remained more or less at the same level.
- AAT's Operating Margin of 24.63% is in line compared to the rest of the industry. AAT outperforms 54.40% of its industry peers.
- In the last couple of years the Operating Margin of AAT has declined.
- With a Gross Margin value of 61.60%, AAT is not doing good in the industry: 64.80% of the companies in the same industry are doing better.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
- With a Altman-Z score value of 0.52, AAT perfoms like the industry average, outperforming 49.60% of the companies in the same 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 68.00% of its industry peers.
- AAT has a Debt/Equity ratio of 1.44. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.44, AAT is in line with its industry, outperforming 45.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 66.24 | ||
| Altman-Z | 0.52 |
ROIC/WACC0.51
WACC5.87%
2.3 Liquidity
- A Current Ratio of 1.61 indicates that AAT should not have too much problems paying its short term obligations.
- The Current ratio of AAT (1.61) is better than 76.00% of its industry peers.
- AAT has a Quick 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.
- The Quick ratio of AAT (1.61) is better than 76.80% 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.
- AAT shows a decrease in Revenue. In the last year, the revenue decreased by -3.79%.
- AAT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.54% yearly.
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
- The Earnings Per Share is expected to decrease by -24.18% on average over the next years. This is quite bad
- The Revenue is expected to decrease by -0.45% on average over the next years.
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
- With a Price/Earnings ratio of 64.21, AAT can be considered very expensive at the moment.
- AAT's Price/Earnings ratio is in line with the industry average.
- AAT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 41.40, 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 64.80% of the companies are valued more expensively.
- AAT is valuated expensively when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.21 | ||
| Fwd PE | 41.4 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AAT is valued a bit cheaper than 78.40% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of AAT indicates a somewhat cheap valuation: AAT is cheaper than 70.40% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.17 | ||
| EV/EBITDA | 11.3 |
4.3 Compensation for Growth
- A cheap valuation may be justified as AAT's earnings are expected to decrease with -24.18% in the coming years.
PEG (NY)N/A
PEG (5Y)31.94
EPS Next 2Y-32.39%
EPS Next 3Y-24.18%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 7.51%, AAT is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 6.82, 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 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.51% |
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.
- The Dividend Rate of AAT has been growing, while earnings will be declining. 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.