AMERICAN ASSETS TRUST INC (AAT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AAT - US0240131047 - REIT
18.9 USD
+0.06 (+0.32%)
18.9 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to AAT. AAT was compared to 128 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.
In the past 5 years AAT has always been profitable.
In the past 5 years AAT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AAT (2.09%) is better than 64.84% of its industry peers.
With a decent Return On Equity value of 5.26%, AAT is doing good in the industry, outperforming 64.84% of the companies in the same industry.
The Return On Invested Capital of AAT (3.01%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for AAT 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
The Profit Margin of AAT (13.99%) is better than 60.94% of its industry peers.
AAT's Profit Margin has been stable in the last couple of years.
The Operating Margin of AAT (24.63%) 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 (61.60%) than 64.06% of its industry peers.
AAT's Gross Margin has been stable in the last couple of years.
| 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.
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
Based on the Altman-Z score of 0.54, we must say that AAT is in the distress zone and has some risk of bankruptcy.
AAT has a Altman-Z score (0.54) which is comparable to the rest of the industry.
The Debt to FCF ratio of AAT is 66.24, which is on the high side as it means it would take AAT, 66.24 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 66.24, AAT is doing good in the industry, outperforming 66.41% of the companies in the same industry.
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 of 1.44. This is comparable to the rest of the industry: AAT outperforms 44.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 66.24 | ||
| Altman-Z | 0.54 |
ROIC/WACC0.52
WACC5.82%
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.
Looking at the Current ratio, with a value of 1.61, AAT is in the better half of the industry, outperforming 73.44% 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 Quick ratio of 1.61. This is in the better half of the industry: AAT outperforms 74.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
AAT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -71.13%.
AAT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.01% yearly.
Looking at the last year, AAT shows a decrease in Revenue. The Revenue has decreased by -3.79% in the last 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)-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 -23.57% yearly.
Based on estimates for the next years, AAT will show a decrease in Revenue. The Revenue will decrease by -0.06% on average per year.
EPS Next Y-56.41%
EPS Next 2Y-30.07%
EPS Next 3Y-23.57%
EPS Next 5YN/A
Revenue Next Year-3.86%
Revenue Next 2Y0.03%
Revenue Next 3Y-0.06%
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.
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 67.50, the valuation of AAT can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of AAT is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.57. AAT is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 40.68, the valuation of AAT can be described as expensive.
Based on the Price/Forward Earnings ratio, AAT is valued a bit cheaper than 64.06% of the companies in the same industry.
AAT is valuated expensively when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.5 | ||
| Fwd PE | 40.68 |
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 75.78% of the companies listed in the same industry.
AAT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AAT is cheaper than 67.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.38 | ||
| EV/EBITDA | 11.53 |
4.3 Compensation for Growth
A cheap valuation may be justified as AAT's earnings are expected to decrease with -23.57% in the coming years.
PEG (NY)N/A
PEG (5Y)33.57
EPS Next 2Y-30.07%
EPS Next 3Y-23.57%
5. Dividend
5.1 Amount
AAT has a Yearly Dividend Yield of 7.15%, which is a nice return.
AAT's Dividend Yield is a higher than the industry average which is at 6.33.
AAT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.15% |
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-30.07%
EPS Next 3Y-23.57%
18.9
+0.06 (+0.32%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners95.73%
Inst Owner Change0.25%
Ins Owners1.55%
Ins Owner Change18.09%
Market Cap1.16B
Revenue(TTM)439.58M
Net Income(TTM)61.48M
Analysts48
Price Target20.91 (10.63%)
Short Float %1.87%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.15% |
Yearly Dividend1.69
Dividend Growth(5Y)2.45%
DP170.43%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-16.94%
Min EPS beat(2)-22.99%
Max EPS beat(2)-10.89%
EPS beat(4)1
Avg EPS beat(4)-27.6%
Min EPS beat(4)-188.67%
Max EPS beat(4)112.16%
EPS beat(8)4
Avg EPS beat(8)-5.79%
EPS beat(12)7
Avg EPS beat(12)8.29%
EPS beat(16)10
Avg EPS beat(16)10.8%
Revenue beat(2)0
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-0.87%
Max Revenue beat(2)-0.82%
Revenue beat(4)1
Avg Revenue beat(4)-1.87%
Min Revenue beat(4)-6.2%
Max Revenue beat(4)0.39%
Revenue beat(8)4
Avg Revenue beat(8)0.57%
Revenue beat(12)7
Avg Revenue beat(12)1.04%
Revenue beat(16)11
Avg Revenue beat(16)2.14%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.5 | ||
| Fwd PE | 40.68 | ||
| P/S | 2.63 | ||
| P/FCF | 45.38 | ||
| P/OCF | 6.91 | ||
| P/B | 0.99 | ||
| P/tB | 1 | ||
| EV/EBITDA | 11.53 |
EPS(TTM)0.28
EY1.48%
EPS(NY)0.46
Fwd EY2.46%
FCF(TTM)0.42
FCFY2.2%
OCF(TTM)2.73
OCFY14.47%
SpS7.19
BVpS19.12
TBVpS18.91
PEG (NY)N/A
PEG (5Y)33.57
Graham Number10.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.09% | ||
| ROE | 5.26% | ||
| ROCE | 3.81% | ||
| ROIC | 3.01% | ||
| ROICexc | 3.16% | ||
| ROICexgc | 3.23% | ||
| OM | 24.63% | ||
| PM (TTM) | 13.99% | ||
| GM | 61.6% | ||
| FCFM | 5.79% |
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%
ROICexgc growth 3Y9.09%
ROICexgc 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 Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 66.24 | ||
| Debt/EBITDA | 7.2 | ||
| Cap/Depr | 112.48% | ||
| Cap/Sales | 32.24% | ||
| Interest Coverage | 1.3 | ||
| Cash Conversion | 71.36% | ||
| Profit Quality | 41.43% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z | 0.54 |
F-Score6
WACC5.82%
ROIC/WACC0.52
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)-71.13%
EPS 3Y31.27%
EPS 5Y2.01%
EPS Q2Q%-75%
EPS Next Y-56.41%
EPS Next 2Y-30.07%
EPS Next 3Y-23.57%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.79%
Revenue growth 3Y6.8%
Revenue growth 5Y4.54%
Sales Q2Q%-10.77%
Revenue Next Year-3.86%
Revenue Next 2Y0.03%
Revenue Next 3Y-0.06%
Revenue Next 5YN/A
EBIT growth 1Y-15.76%
EBIT growth 3Y8.95%
EBIT growth 5Y2.59%
EBIT Next Year62.82%
EBIT Next 3Y18.93%
EBIT Next 5YN/A
FCF growth 1Y-74.15%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-11.12%
OCF growth 3Y7.16%
OCF growth 5Y6.13%
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 for AAT stock?
ChartMill assigns a valuation rating of 2 / 10 to AMERICAN ASSETS TRUST INC (AAT). This can be considered as Overvalued.
How profitable is AMERICAN ASSETS TRUST INC (AAT) stock?
AMERICAN ASSETS TRUST INC (AAT) has a profitability rating of 5 / 10.
What is the financial health of AMERICAN ASSETS TRUST INC (AAT) stock?
The financial health rating of AMERICAN ASSETS TRUST INC (AAT) is 3 / 10.
Can you provide the expected EPS growth for AAT stock?
The Earnings per Share (EPS) of AMERICAN ASSETS TRUST INC (AAT) is expected to decline by -56.41% in the next year.