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Fundamental analysis: American Assets Trust, Inc. (AAT)

Awarener score: 6.1

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Good) and growth (Lacking), and the company's inclination to return cash to the stockholders (Very good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.5

  • Business has been slightly shrinking. It's been almost average when measured against peer companies.
  • American Assets Trust, Inc. business trend stability is good. The higher the stability, the lower the risk. It looks slightly better than rivals.

Margins score: 8.8

  • AAT profit margins -on goods and services sold- are usually excellent. They stand mediocre against rival companies.
  • Business profit on sales tends to be huge. It's weak when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually excellent. They remain in a very weak position compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be excellent in relation to total revenues. They're still mediocre against similar companies.
  • Profits -before income taxes- are usually very good considering total sales, and remain below average when measured against rivals.
  • Total net profit tends to be very good when confronted to sales. Company stands below average when measured against comparable firms.

Growth score: 5.9

  • American Assets Trust, Inc. profit -on goods and services sold- has been growing at a very low pace. It's been close to average when compared to competitors.
  • In recent years, earnings -on operations- have been growing at a low step, which has been somewhat worse than comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a very low pace, which compares below average when measured against peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at a slow tempo. It turns to be lacking compared to similar stocks.
  • In past years, profits -before income taxes- grew at a very good speed. It was slightly better than rivals.
  • In the previous years, growth trend on total net profit has been very good, and similar to peer companies.
  • Earnings per share have grown at a good rhythm in past years. It's been rather normal in relation to industry peers.

Miscellaneous score: 9.0

  • AAT managed to pay no income taxes on profits made in the past years, sometimes even got a credit. It's been somewhat worse than peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 5.8

  • American Assets Trust, Inc. usually gets good returns on the resources it controls. It proves below average when measured against peer firms.
  • The company normally gets hardly sufficient proceeds -on the resources directly invested in the business-. They remain in a weak position compared to similar companies.
  • Profitability -in relation to owned resources- is usually modest. It ranks weak when measured against competitors.
  • In the past, got sufficient returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's below average when measured against comparable enterprises.

Usage of Funds score: 5.6

  • AAT usually uses almost no genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is non-significant. It stands below average when measured against rival firms.
  • The company is usually replacing most of the property, plant, and equipment that gets old, and saving a little funds for something else, which is weak when measured against industry peers.
  • In the past twelve months it paid very good dividends, considering the current stock price. It came somewhat worse than competitors.
  • In recent years, has cut back dividend payments. It could be traversing challenging times. The company has behaved lacking compared to similar firms.
  • The company pays more dividends than genuine funds is usually able to generate, therefore borrowing more funds. Future payments may be at risk, especially if a downturn in business occurs. Sustainability looks mediocre against comparable companies.
  • The company usually enlarges quite a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains rather normal in relation to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands rather normal in relation to rivals.
  • We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 4.6

  • American Assets Trust, Inc. has no intangible assets (like brands and goodwill) according to accounting books, which is safest. It happens to be encouraging in relation to peer companies.
  • The company has lower short-term resources than short-term obligations. Unless it's part of the business model, there might be liquidity concerns. It turns to be in a weak position compared to similar firms.
  • A substantial part of resources controlled were provided for with financial debt. Creditors have as many claims on the company as shareholders. The situation is somewhat risky. It remains worse than most rival firms.
  • Controlled resources might be only very slowly turned into cash and equivalents, which is riskier. It looks almost average when measured against rivals.
  • For every dollar of short-term obligations, the company has few cents of cash and short-term receivables. It's in a weak position compared to peer firms.
  • For every dollar of short-term obligations, the company has extremely few cents of cash and equivalents, which is slightly better than similar enterprises.
  • Usually, sales are on somewhat less than three months credit. It still ranks encouraging in relation to peers.
  • Normally has no inventories. It comes up as impressive in relation to competitors.
  • On average, it takes higher than three months from the purchase to charging customers. It happens to be somewhat better than peers.
  • On average pays suppliers approximately four months or higher after the purchase. It ranks encouraging in relation to industry peers.
  • The company charges its customers long before it must pay its suppliers, so the more it sales, the more free funds it gets. It's a slight improvement compared to similar companies.
  • Usual business earnings are mostly consumed by net interest expenses. Creditors may be earning money by assuming risks, but stockholders not so much. Profitability must increase, lest the firm risks only working for creditors' benefit. It stands somewhat worse than rival firms.
  • Business earnings have usually been very low when measured against loans taken. Even significantly cutting back reinvesting in the business, it could take more than ten years to repay the obligations with current profitability. It ranks below average when measured against comparable enterprises.
  • Fixed assets turnover remains undisclosed. It looks we cannot relate it to similar firms.
  • Resource exploitation is very low when yearly sales are considered, business volume must be greatly increased. This metric is normally tied to the industry where the firm belongs. It's still well ranked against peer companies.

Valuation score: 5.1

  • American Assets Trust, Inc. profits are really small compared to market valuation, market valuation doesn't rely on current earnings. It happens to be weak when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains lacking compared to peers.
  • In the past twelve months, the company generated some slightly better free funds in relation to the stock price, which stands mediocre against similar companies.
  • The company usually generates somewhat more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be reasonable. It's still almost average when measured against industry firms.
  • In the past twelve months, the company has slightly rewarded investors, considering both dividends and share on the pie of earnings. It came up in good shape compared to peer ventures.
  • The company is largely indebted. It should focus on loan repayment before rewarding stockholders. It looks somewhat worse than similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is very high. A lot of improvement expectations are already in the stock price, which is risky. It ranks below average when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a very high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks rather normal in relation to rival firms.
  • The relation between the stock price and accounting book value is somewhat high. It's important both to check this metric through time and to compare it with rival companies. The company remains somewhat worse than peer firms.
  • In the past twelve months, the operating business earned little money when compared to the current stock price and financial position. It happens to be last-in-rank when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a modest earnings power ability when measured against the current stock price and financial position. It's still in a very weak position compared to peer companies.

Total score: 6.3


AAT logos

Company at a glance: American Assets Trust, Inc. (AAT)

Sector, industry: Real Estate, REIT—Diversified

Market Cap: 1.94 billions

Revenues TTM: 0.41 billions

American Assets Trust, Inc. is a full service, vertically integrated and self-administered real estate investment trust, or REIT, headquartered in San Diego, California. The company has over 50 years of experience in acquiring, improving, developing and managing premier office, retail, and residential properties throughout the United States in some of the nation's most dynamic, high-barrier-to-entry markets primarily in Southern California, Northern California, Oregon, Washington, Texas and Hawaii. The company's office portfolio comprises approximately 3.4 million rentable square feet, and its retail portfolio comprises approximately 3.1 million square feet. In addition, the company owns one mixed-use property (including approximately 97,000 rentable square feet of retail space and a 369-room all-suite hotel) and 2,112 multifamily units. In 2011, the company was formed to succeed to the real estate business of American Assets, Inc., a privately held corporation founded in 1967 and, as such, has significant experience, long-standing relationships and extensive knowledge of its core markets, submarkets and asset classes.

Awarener score: 6.1

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Good) and growth (Lacking), and the company's inclination to return cash to the stockholders (Very good).