AMERICAN ASSETS TRUST INC (AAT) Stock Fundamental Analysis
NYSE:AAT - New York Stock Exchange, Inc. - US0240131047 - REIT - Currency: USD
Overall AAT gets a fundamental rating of 4 out of 10. We evaluated AAT against 129 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.
In the past year AAT had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 2.70%, AAT is in the better half of the industry, outperforming 74.42% of the companies in the same industry.
AAT's Return On Equity of 6.68% is fine compared to the rest of the industry. AAT outperforms 78.29% of its industry peers.
AAT's Return On Invested Capital of 3.46% is fine compared to the rest of the industry. AAT outperforms 66.67% 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 3.15%.
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's Profit Margin of 17.57% is fine compared to the rest of the industry. AAT outperforms 70.54% of its industry peers.
In the last couple of years the Profit Margin of AAT has remained more or less at the same level.
AAT has a Operating Margin of 27.68%. This is comparable to the rest of the industry: AAT outperforms 59.69% of its industry peers.
In the last couple of years the Operating Margin of AAT has declined.
The Gross Margin of AAT (63.15%) is worse than 63.57% 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.
Compared to 1 year ago, AAT has more shares outstanding
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
Based on the Altman-Z score of 0.60, we must say that AAT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.60, AAT perfoms like the industry average, outperforming 54.26% 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.
The Debt to FCF ratio of AAT (36.97) is better than 65.89% 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.
Looking at the Debt to Equity ratio, with a value of 1.41, AAT is in line with its industry, outperforming 44.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 36.97 | ||
| Altman-Z | 0.6 |
ROIC/WACC0.57
WACC6.07%
2.3 Liquidity
AAT has a Current 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.
AAT's Current ratio of 1.86 is fine compared to the rest of the industry. AAT outperforms 76.74% 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.
With a decent Quick ratio value of 1.86, AAT is doing good in the industry, outperforming 76.74% of the companies in the same industry.
| 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.
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 small growth in Revenue. The Revenue has grown by 2.63% 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)-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
The Earnings Per Share is expected to decrease by -24.80% on average over the next years. This is quite bad
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-65.98%
EPS Next 2Y-30.83%
EPS Next 3Y-24.8%
EPS Next 5YN/A
Revenue Next Year1.99%
Revenue Next 2Y-1.04%
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
A Price/Earnings ratio of 33.68 indicates a quite expensive valuation of AAT.
The rest of the industry has a similar Price/Earnings ratio as AAT.
When comparing the Price/Earnings ratio of AAT to the average of the S&P500 Index (26.25), we can say AAT is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 44.47, the valuation of AAT can be described as expensive.
AAT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AAT is cheaper than 62.02% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AAT to the average of the S&P500 Index (22.15), we can say AAT is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.68 | ||
| Fwd PE | 44.47 |
4.2 Price Multiples
76.74% of the companies in the same industry are more expensive than AAT, based on the Enterprise Value to EBITDA ratio.
75.19% of the companies in the same industry are more expensive than AAT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.09 | ||
| EV/EBITDA | 10.96 |
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)16.75
EPS Next 2Y-30.83%
EPS Next 3Y-24.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.75%, AAT is a good candidate for dividend investing.
AAT's Dividend Yield is a higher than the industry average which is at 6.68.
Compared to an average S&P500 Dividend Yield of 2.38, AAT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.75% |
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.
The Dividend Rate of AAT has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP129.68%
EPS Next 2Y-30.83%
EPS Next 3Y-24.8%
20.21
+0.27 (+1.35%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners93.45%
Inst Owner Change2.54%
Ins Owners1.82%
Ins Owner Change20.4%
Market Cap1.24B
Analysts48
Price Target21.42 (5.99%)
Short Float %2.15%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.75% |
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)-8.7%
PT rev (3m)-19.23%
EPS NQ rev (1m)25%
EPS NQ rev (3m)-20%
EPS NY rev (1m)-34.69%
EPS NY rev (3m)-34.69%
Revenue NQ rev (1m)3.75%
Revenue NQ rev (3m)3.75%
Revenue NY rev (1m)-1.41%
Revenue NY rev (3m)-1.41%
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 | 10.96 |
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 | 0.6 |
F-Score7
WACC6.07%
ROIC/WACC0.57
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-65.98%
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 Year1.99%
Revenue Next 2Y-1.04%
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%