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 128 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 is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year AAT was profitable.
AAT had a positive operating cash flow in the past year.
In the past 5 years AAT has always been profitable.
Each year in the past 5 years AAT had a positive operating cash flow.
1.2 Ratios
AAT has a better Return On Assets (2.70%) than 74.22% of its industry peers.
With a decent Return On Equity value of 6.68%, AAT is doing good in the industry, outperforming 78.13% of the companies in the same industry.
AAT's Return On Invested Capital of 3.46% is fine compared to the rest of the industry. AAT outperforms 67.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AAT is in line with the industry average of 3.14%.
The 3 year average ROIC (3.22%) for AAT is below the current ROIC(3.46%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 17.57%, AAT is in the better half of the industry, outperforming 70.31% 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 27.68% is in line compared to the rest of the industry. AAT outperforms 59.38% of its industry peers.
AAT's Operating Margin has declined in the last couple of years.
AAT has a worse Gross Margin (63.15%) than 63.28% 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 | 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
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.
Compared to 5 years ago, AAT has more shares outstanding
The debt/assets ratio for AAT is higher compared to a year ago.
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.
With a Altman-Z score value of 0.61, AAT perfoms like the industry average, outperforming 54.69% of the companies in the same industry.
The Debt to FCF ratio of AAT is 36.97, which is on the high side as it means it would take AAT, 36.97 years of fcf income to pay off all of its debts.
AAT's Debt to FCF ratio of 36.97 is fine compared to the rest of the industry. AAT outperforms 66.41% of its industry peers.
A Debt/Equity ratio of 1.41 is on the high side and indicates that AAT has dependencies on debt financing.
AAT has a Debt to Equity ratio (1.41) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 36.97 | ||
| Altman-Z | 0.61 |
ROIC/WACC0.47
WACC7.43%
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 76.56% of its industry peers.
A Quick Ratio of 1.86 indicates that AAT should not have too much problems paying its short term obligations.
The Quick ratio of AAT (1.86) is better than 76.56% 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.
The Earnings Per Share has been growing slightly by 2.01% on average over the past years.
AAT shows a small growth in Revenue. In the last year, the Revenue has grown by 2.63%.
AAT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.54% yearly.
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.
AAT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.03% yearly.
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
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
AAT is valuated quite expensively with a Price/Earnings ratio of 33.72.
AAT's Price/Earnings is on the same level as the industry average.
AAT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.34.
A Price/Forward Earnings ratio of 44.51 indicates a quite expensive valuation of AAT.
AAT's Price/Forward Earnings is on the same level as the industry average.
AAT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.72 | ||
| Fwd PE | 44.51 |
4.2 Price Multiples
76.56% of the companies in the same industry are more expensive than AAT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AAT indicates a somewhat cheap valuation: AAT is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.12 | ||
| EV/EBITDA | 11.03 |
4.3 Compensation for Growth
The decent profitability rating of AAT may justify a higher PE ratio.
AAT's earnings are expected to decrease with -24.80% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)16.77
EPS Next 2Y-30.83%
EPS Next 3Y-24.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.69%, AAT is a good candidate for dividend investing.
AAT's Dividend Yield is a higher than the industry average which is at 6.72.
AAT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.69% |
5.2 History
The dividend of AAT has a limited annual growth rate of 2.45%.
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)2.45%
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%
20.23
-0.1 (-0.49%)
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 (5.88%)
Short Float %2.32%
Short Ratio3.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.69% |
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 | 33.72 | ||
| Fwd PE | 44.51 | ||
| P/S | 2.71 | ||
| P/FCF | 27.12 | ||
| P/OCF | 6.54 | ||
| P/B | 1.03 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 11.03 |
EPS(TTM)0.6
EY2.97%
EPS(NY)0.45
Fwd EY2.25%
FCF(TTM)0.75
FCFY3.69%
OCF(TTM)3.09
OCFY15.3%
SpS7.46
BVpS19.6
TBVpS19.35
PEG (NY)N/A
PEG (5Y)16.77
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
WACC7.43%
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%