AMERICAN ASSETS TRUST INC (AAT) Stock Fundamental Analysis
NYSE:AAT - New York Stock Exchange, Inc. - US0240131047 - REIT - Currency: USD
Taking everything into account, AAT scores 4 out of 10 in our fundamental rating. AAT was compared to 130 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 is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year AAT was profitable.
In the past year AAT had a positive cash flow from operations.
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 has a Return On Assets of 2.70%. This is in the better half of the industry: AAT outperforms 74.62% of its industry peers.
AAT has a better Return On Equity (6.68%) than 78.46% of its industry peers.
With a decent Return On Invested Capital value of 3.46%, AAT is doing good in the industry, outperforming 66.15% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AAT is in line with the industry average of 3.16%.
The last Return On Invested Capital (3.46%) for AAT is above the 3 year average (3.22%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.7% | ||
| ROE | 6.68% | ||
| ROIC | 3.46% |
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 better Profit Margin (17.57%) than 70.77% of its industry peers.
AAT's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 27.68%, AAT is in line with its industry, outperforming 59.23% of the companies in the same industry.
In the last couple of years the Operating Margin of AAT has declined.
AAT's Gross Margin of 63.15% is on the low side compared to the rest of the industry. AAT is outperformed by 63.85% of its industry peers.
AAT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.68% | ||
| PM (TTM) | 17.57% | ||
| GM | 63.15% |
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
AAT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
AAT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AAT has more shares outstanding
Compared to 1 year ago, AAT has a worse debt to assets ratio.
2.2 Solvency
AAT has an Altman-Z score of 0.61. This is a bad value and indicates that AAT is not financially healthy and even has some risk of bankruptcy.
AAT has a Altman-Z score (0.61) which is comparable to the rest of the industry.
AAT has a debt to FCF ratio of 36.97. This is a negative value and a sign of low solvency as AAT would need 36.97 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 36.97, AAT is doing good in the industry, outperforming 66.15% of the companies in the same industry.
AAT has a Debt/Equity ratio of 1.41. This is a high value indicating a heavy dependency on external financing.
AAT has a Debt to Equity ratio (1.41) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 36.97 | ||
| Altman-Z | 0.61 |
ROIC/WACC0.47
WACC7.4%
2.3 Liquidity
A Current Ratio of 1.86 indicates that AAT should not have too much problems paying its short term obligations.
AAT's Current ratio of 1.86 is fine compared to the rest of the industry. AAT outperforms 76.15% of its industry peers.
AAT has a Quick Ratio of 1.86. 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 (1.86) is better than 76.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.86 |
3. Growth
3.1 Past
The earnings per share for AAT have decreased strongly by -32.58% in the last 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 2.63% 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)-32.58%
EPS 3Y31.27%
EPS 5Y2.01%
EPS Q2Q%-109.37%
Revenue 1Y (TTM)2.63%
Revenue growth 3Y6.8%
Revenue growth 5Y4.54%
Sales Q2Q%-1.89%
3.2 Future
Based on estimates for the next years, AAT will show a very negative growth in Earnings Per Share. The EPS will decrease by -24.80% on average per year.
The Revenue is expected to grow by 0.03% on average over the next years.
EPS Next Y-60.66%
EPS Next 2Y-30.83%
EPS Next 3Y-24.8%
EPS Next 5YN/A
Revenue Next Year0.53%
Revenue Next 2Y-0.91%
Revenue Next 3Y0.03%
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.
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 33.68, 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 (27.45), we can say AAT is valued slightly more expensively.
A Price/Forward Earnings ratio of 44.47 indicates a quite expensive valuation of AAT.
Based on the Price/Forward Earnings ratio, AAT is valued a bit cheaper than 61.54% 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 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.68 | ||
| Fwd PE | 44.47 |
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 75.38% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, AAT is valued a bit cheaper than 74.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.09 | ||
| EV/EBITDA | 11.02 |
4.3 Compensation for Growth
The decent profitability rating of AAT may justify a higher PE ratio.
A cheap valuation may be justified as AAT's earnings are expected to decrease with -24.80% in the coming years.
PEG (NY)N/A
PEG (5Y)16.75
EPS Next 2Y-30.83%
EPS Next 3Y-24.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.83%, AAT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.64, 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 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.83% |
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
129.68% 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.
DP129.68%
EPS Next 2Y-30.83%
EPS Next 3Y-24.8%
20.21
+0.02 (+0.1%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners93.8%
Inst Owner Change2.54%
Ins Owners1.55%
Ins Owner Change1.77%
Market Cap1.24B
Analysts48
Price Target21.42 (5.99%)
Short Float %1.66%
Short Ratio2.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.83% |
Yearly Dividend1.69
Dividend Growth(5Y)2.45%
DP129.68%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-38.25%
Min EPS beat(2)-188.67%
Max EPS beat(2)112.16%
EPS beat(4)2
Avg EPS beat(4)-9.87%
Min EPS beat(4)-188.67%
Max EPS beat(4)112.16%
EPS beat(8)6
Avg EPS beat(8)5.42%
EPS beat(12)9
Avg EPS beat(12)16.23%
EPS beat(16)11
Avg EPS beat(16)14.86%
Revenue beat(2)1
Avg Revenue beat(2)-2.9%
Min Revenue beat(2)-6.2%
Max Revenue beat(2)0.39%
Revenue beat(4)3
Avg Revenue beat(4)1.05%
Min Revenue beat(4)-6.2%
Max Revenue beat(4)9.19%
Revenue beat(8)6
Avg Revenue beat(8)1.57%
Revenue beat(12)9
Avg Revenue beat(12)2.19%
Revenue beat(16)13
Avg Revenue beat(16)2.96%
PT rev (1m)0%
PT rev (3m)-8.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20%
EPS NY rev (1m)15.63%
EPS NY rev (3m)-24.49%
Revenue NQ rev (1m)-5.59%
Revenue NQ rev (3m)-2.05%
Revenue NY rev (1m)-1.43%
Revenue NY rev (3m)-2.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.68 | ||
| Fwd PE | 44.47 | ||
| P/S | 2.71 | ||
| P/FCF | 27.09 | ||
| P/OCF | 6.53 | ||
| P/B | 1.03 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 11.02 |
EPS(TTM)0.6
EY2.97%
EPS(NY)0.45
Fwd EY2.25%
FCF(TTM)0.75
FCFY3.69%
OCF(TTM)3.09
OCFY15.31%
SpS7.46
BVpS19.6
TBVpS19.35
PEG (NY)N/A
PEG (5Y)16.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.7% | ||
| ROE | 6.68% | ||
| ROCE | 4.38% | ||
| ROIC | 3.46% | ||
| ROICexc | 3.64% | ||
| ROICexgc | 3.72% | ||
| OM | 27.68% | ||
| PM (TTM) | 17.57% | ||
| GM | 63.15% | ||
| FCFM | 10.01% |
ROA(3y)1.63%
ROA(5y)1.36%
ROE(3y)4.2%
ROE(5y)3.41%
ROIC(3y)3.22%
ROIC(5y)2.99%
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-Score7
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 36.97 | ||
| Debt/EBITDA | 6.69 | ||
| Cap/Depr | 114.2% | ||
| Cap/Sales | 31.51% | ||
| Interest Coverage | 1.63 | ||
| Cash Conversion | 75.11% | ||
| Profit Quality | 56.96% | ||
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.86 | ||
| Altman-Z | 0.61 |
F-Score7
WACC7.4%
ROIC/WACC0.47
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)-32.58%
EPS 3Y31.27%
EPS 5Y2.01%
EPS Q2Q%-109.37%
EPS Next Y-60.66%
EPS Next 2Y-30.83%
EPS Next 3Y-24.8%
EPS Next 5YN/A
Revenue 1Y (TTM)2.63%
Revenue growth 3Y6.8%
Revenue growth 5Y4.54%
Sales Q2Q%-1.89%
Revenue Next Year0.53%
Revenue Next 2Y-0.91%
Revenue Next 3Y0.03%
Revenue Next 5YN/A
EBIT growth 1Y2.94%
EBIT growth 3Y8.95%
EBIT growth 5Y2.59%
EBIT Next Year68.68%
EBIT Next 3Y18.84%
EBIT Next 5YN/A
FCF growth 1Y-45.45%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-1.46%
OCF growth 3Y7.16%
OCF growth 5Y6.13%