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

Awarener score: 6.8

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 (Good), the business stability (Good) and growth (Modest), 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: 6.0

Business growth has been almost stagnant. It's been weak 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 worse than rivals.

Margins score: 8.7

AAT profit margins -on goods and services sold- are usually very good. 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 worse than most similar companies.
Profits -before income taxes- are usually very good considering total sales, and remain weak when measured against rivals.
Total net profit tends to be very good when confronted to sales. Company stands weak when measured against comparable firms.

Growth score: 5.0

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 very 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 almost 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 on total net profit has been average, and weak when measured against peer companies.
Earnings per share have grown at a very low rhythm in past years. It's been lacking compared to industry peers.

Miscellaneous score: 7.0

AAT had hardly to pay income taxes in relation to profits made in the past years. It's been mediocre against 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 very weak position compared to similar companies.
Profitability -in relation to owned resources- is usually modest. It ranks below average 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 weak when measured against comparable enterprises.

Usage of Funds score: 6.0

AAT usually uses a sparse portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is modest. It stands weak 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 below average when measured against industry peers.
In the past twelve months it paid very good dividends, considering the current stock price. It came slightly 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.
Dividend payments usually represent a modest portion of genuine funds generation and should be reasonable safe. Sustainability looks better than most 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 close to average when compared 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: 5.6

American Assets Trust, Inc. has no intangible assets (like brands and goodwill) according to accounting books, which is safest. It happens to be top tier when measured against peer companies.
The company has roughly triple short-term resources than short-term obligations. Liquidity concerns are most likely unimportant. It turns to be close to average when compared to similar firms.
Most resources controlled were provided for with financial debt. Creditors have more claims on the company than shareholders. Unless the company is a financial institution that takes deposits, the situation might be very risky. It remains bottom tier against rival firms.
Controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks below average when measured against rivals.
For every dollar of short-term obligations, the company has more than enough dollars in cash and short-term receivables. It's rather normal in relation to peer firms.
For every dollar of short-term obligations, the company has roughly another of cash and equivalents, which is well ranked against similar enterprises.
Usually, sales are on somewhat less than three months credit. It still ranks below average when measured against 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 worse 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 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 mediocre against 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 slightly better than 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 in good shape compared to peers.
In the past twelve months, the company generated some free funds in relation to the stock price, which stands worse than most similar companies.
The company usually generates much more 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, at the current price the share might be very interesting. It's still more than average in relation to 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 close to average when compared to peer ventures.
The company is drowned in loans. It almost belongs more to the creditors than the stockholders. The situation may be dire. It looks worse than most similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation is huge, as profits were extremely low in relative terms. It ranks weak when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks close to average when compared to rival firms.
The relation between the stock price and accounting book value might be reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains slightly better than peer firms.
In the past twelve months, the operating business lost a little money. It happens to be substantially worse when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown a mediocre earnings power ability when measured against the current stock price and financial position. It's still a disappointment compared to peer companies.

Total score: 6.1

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

Sector, industry: Real Estate, REIT—Diversified

Market Cap: 1.49 billions

Revenues TTM: 0.43 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.