AMERICAN ASSETS TRUST INC (AAT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AAT - US0240131047 - REIT
18.02 USD
-0.09 (-0.5%)
Taking everything into account, AAT scores 3 out of 10 in our fundamental rating. AAT was compared to 125 industry peers in the Diversified REITs industry. AAT has a medium profitability rating, but doesn't score so well on its financial health evaluation. AAT has a expensive valuation and it also scores bad on growth.
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
- With a decent Return On Assets value of 2.09%, AAT is doing good in the industry, outperforming 64.80% of the companies in the same industry.
- AAT's Return On Equity of 5.26% is fine compared to the rest of the industry. AAT outperforms 65.60% of its industry peers.
- AAT has a Return On Invested Capital (3.01%) which is in line with its industry peers.
- 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 3.07%.
| 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 60.80% of its industry peers.
- In the last couple of years the Profit Margin of AAT has remained more or less at the same level.
- With a Operating Margin value of 24.63%, AAT perfoms like the industry average, outperforming 54.40% of the companies in the same industry.
- In the last couple of years the Operating Margin of AAT has declined.
- The Gross Margin of AAT (61.60%) is worse than 64.80% 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 | 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
- 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.
- AAT has more shares outstanding than it did 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 0.52, we must say that AAT is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of AAT (0.52) is comparable to the rest of the 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 has a Debt to FCF ratio of 66.24. This is in the better half of the industry: AAT outperforms 68.00% of its industry peers.
- 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 45.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | 66.24 | ||
| Altman-Z | 0.52 |
ROIC/WACC0.51
WACC5.89%
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.
- AAT's Current ratio of 1.61 is fine compared to the rest of the industry. AAT outperforms 76.00% of its industry peers.
- A Quick Ratio of 1.61 indicates that AAT should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.61, AAT is in the better half of the industry, outperforming 76.80% of the companies in the same industry.
| 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%.
- 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 decreased by -3.79% 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)-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 -0.45% 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-4.22%
Revenue Next 2Y0.16%
Revenue Next 3Y-0.45%
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
- With a Price/Earnings ratio of 64.36, AAT can be considered very expensive at the moment.
- 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 (27.30), we can say AAT is valued expensively.
- With a Price/Forward Earnings ratio of 38.79, AAT can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of AAT indicates a somewhat cheap valuation: AAT is cheaper than 67.20% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of AAT to the average of the S&P500 Index (24.32), we can say AAT is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.36 | ||
| Fwd PE | 38.79 |
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 | 43.27 | ||
| EV/EBITDA | 11.34 |
4.3 Compensation for Growth
- AAT's earnings are expected to decrease with -23.57% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)32.01
EPS Next 2Y-30.07%
EPS Next 3Y-23.57%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 7.28%, AAT is a good candidate for dividend investing.
- AAT's Dividend Yield is a higher than the industry average which is at 6.59.
- AAT's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.28% |
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
- 170.43% of the earnings are spent on dividend by AAT. 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-30.07%
EPS Next 3Y-23.57%
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 -56.41% in the next year.