American Assets Trust, Inc. (AAT) stock analysis

P/E above its 5-year median

American Assets Trust's P/E of 61.4 is above its own 5-year median of 26.9.

P/E above the industry

American Assets Trust's P/E of 61.4 is above the Miscellaneous Investing median of 26.3.

EV/EBITDA above its 5-year median

American Assets Trust's EV/EBITDA of 4.9 is above its 5-year median of 4.9.

P/B below the industry

American Assets Trust's price-to-book of 1.19 is below the Miscellaneous Investing median of 1.20.

Trading above fair value

The share price of $21.49 is above our fair value estimate of $21.09.

Margin of safety under 20%

The price is 1.9% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 1.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 8.5% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 1.1% over the last twelve months; the Miscellaneous Investing median is 4.6%.

Guidance issued

The latest outlook (2026 FFO per diluted share, Oct 27, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin slipping

Gross margin was 61.1% over the last twelve months, against 61.6% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital under 10%

Return on invested capital was 8.1%, below the 10% that usually covers the cost of capital.

Return on equity against the industry

Needs positive equity.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin against its history

Needs five years of revenue and net income.

Net margin against the industry

Needs revenue and net income.

No debt

American Assets Trust has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Elevated bankruptcy risk

The Altman Z-score is 0.53; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

American Assets Trust paid dividends worth 6.3% of the share price over the last twelve months.

Yield above Treasuries

The 6.3% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; American Assets Trust yields 6.3%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.