AMERICAN ASSETS TRUST INC (AAT) Stock Fundamental Analysis
NYSE:AAT - New York Stock Exchange, Inc. - US0240131047 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to AAT. 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.
AAT had a positive operating cash flow in each of the past 5 years.
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 Return On Equity of 6.68%. This is in the better half of the industry: AAT outperforms 78.46% of its industry peers.
AAT's Return On Invested Capital of 3.46% is fine compared to the rest of the industry. AAT outperforms 66.15% 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 3.16%.
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
With a decent Profit Margin value of 17.57%, AAT is doing good in the industry, outperforming 70.77% 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.
The Operating Margin of AAT (27.68%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of AAT has declined.
Looking at the Gross Margin, with a value of 63.15%, AAT is doing worse than 63.85% of the companies in the same industry.
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
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
AAT has more shares outstanding than it did 5 years ago.
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.
The Altman-Z score of AAT (0.61) 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.
AAT's Debt to FCF ratio of 36.97 is fine compared to the rest of the industry. AAT outperforms 66.15% 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 of 1.41. This is comparable to the rest of the industry: AAT outperforms 44.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 36.97 | ||
| Altman-Z | 0.61 |
ROIC/WACC0.56
WACC6.21%
2.3 Liquidity
A Current Ratio of 1.86 indicates that AAT should not have too much problems paying its short term obligations.
AAT has a Current ratio of 1.86. This is in the better half of the industry: AAT outperforms 76.92% 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.
Looking at the Quick ratio, with a value of 1.86, AAT is in the better half of the industry, outperforming 76.92% 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.
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 Year-3.83%
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
Based on the Price/Earnings ratio of 33.57, the valuation of AAT can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as AAT.
The average S&P500 Price/Earnings ratio is at 27.50. AAT is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 44.31, AAT can be considered very expensive at the moment.
AAT's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, AAT is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.57 | ||
| Fwd PE | 44.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AAT is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
AAT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AAT is cheaper than 74.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.99 | ||
| EV/EBITDA | 11.01 |
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)16.7
EPS Next 2Y-30.83%
EPS Next 3Y-24.8%
5. Dividend
5.1 Amount
AAT has a Yearly Dividend Yield of 6.74%, which is a nice return.
AAT's Dividend Yield is a higher than the industry average which is at 6.56.
AAT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.74% |
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
AAT pays out 129.68% 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.
DP129.68%
EPS Next 2Y-30.83%
EPS Next 3Y-24.8%
20.14
-0.03 (-0.15%)
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 Change0.13%
Ins Owners1.55%
Ins Owner Change1.77%
Market Cap1.23B
Analysts48
Price Target21.42 (6.36%)
Short Float %1.99%
Short Ratio2.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.74% |
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)0%
EPS NY rev (3m)-24.49%
Revenue NQ rev (1m)-5.92%
Revenue NQ rev (3m)-7.85%
Revenue NY rev (1m)-4.33%
Revenue NY rev (3m)-7.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.57 | ||
| Fwd PE | 44.31 | ||
| P/S | 2.7 | ||
| P/FCF | 26.99 | ||
| P/OCF | 6.51 | ||
| P/B | 1.03 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 11.01 |
EPS(TTM)0.6
EY2.98%
EPS(NY)0.45
Fwd EY2.26%
FCF(TTM)0.75
FCFY3.7%
OCF(TTM)3.09
OCFY15.37%
SpS7.46
BVpS19.6
TBVpS19.35
PEG (NY)N/A
PEG (5Y)16.7
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
WACC6.21%
ROIC/WACC0.56
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 Year-3.83%
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%