American Assets Trust, Inc. (AAT)
Valuation Overview•Is American Assets Trust, Inc. Overvalued or Undervalued?
Trading at a discount across both intrinsic cash flow and relative peer multiples, indicating a strong margin of safety.
Moderate quality score of 55/100, reflecting stable operating margins and manageable leverage.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street is cautious, forecasting potential downside alongside robust expected earnings growth. This outlook is strongly supported by highly attractive capital returns, anchored by a strong, well-covered dividend yield.
AAT demonstrates adequate business quality with stable profitability. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company exhibits steady, low-single-digit revenue growth paired with robust earnings compounding (8.5% EPS 3Y CAGR). The company maintains healthy operational efficiency with a 22.8% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $110.6M | -4.7% | +1.1% | +4.8% | +4.7% | |
| EBITDA | $58.1M | — | +4.7% | — | — | |
| Net Income | $5.1M | -2.0% | +8.5% | — | +2.8% | |
| EPS (Diluted) | $0.08 | -2.1% | +8.5% | +14.9% | +0.7% | |
| Free Cash Flow | $18.2M | -30.7% | +13.3% | +8.4% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 60.8% | 62.4% | 63.3% | 63.5% |
| Operating Margin | 22.8% | 29.8% | 28.6% | 28.7% |
| Net Margin | 5.1% | 15.6% | 14.0% | 13.3% |
| FCF Margin | 21.1% | 25.2% | 21.6% | 22.2% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.51 | $0.51 | +0.0% | ||
| Q1'26 | $0.48 | $0.47 | -2.1% | ||
| Q4'25 | $0.49 | $0.49 | +0.0% | ||
| Q3'25 | $0.49 | $0.52 | +6.1% | ||
| Q2'25 | $0.45 | $0.52 | +15.6% | ||
| Q1'25 | $0.14 | $0.55 | +292.9% | ||
| Q4'24 | $0.54 | $0.71 | +31.5% | ||
| Q3'24 | $0.53 | $0.60 | +13.2% |
Total return is +28.8% (1Y), outperforming the benchmark by +7.9%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +33.4% | +26.1% | — |
| 1Y | +28.8% | +7.9% | +6.8% |
| 3YCAGR | +14.8% | -3.1% | +21.5% |
| 5YCAGR | -3.7% | -15.3% | +17.6% |
| 10YCAGR | -1.2% | -14.9% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about American Assets Trust, Inc. (AAT) valuation, health, and returns.
American Assets Trust, Inc. is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. undervalued (implying +51.6% upside to DCF intrinsic value of $38.17)
American Assets Trust, Inc. has multiple valuation anchors: DCF Intrinsic Value: $38.17 | Peer Relative Fair Value: $35.89 | Wall Street Analyst Target: $18.50 (implying -26.5% upside). A convergence of these signals offers higher conviction.
American Assets Trust, Inc. displays fair financial health with a composite quality score of 55/100, supported by a Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 4.1%.
American Assets Trust, Inc. pays a 5.4% dividend yield, covered by a 147% payout ratio with 5 years of growth, supplemented by a 0.2% buyback yield.
American Assets Trust, Inc.'s current growth trajectory is Decelerating. The company achieved -4.7% 1Y revenue growth and -2.1% 1Y EPS growth, compared to its 3Y revenue CAGR of +1.1%.
Wall Street consensus is Buy based on 11 analysts, beating EPS expectations in 75% of recent quarters with a -3-quarter streak. The consensus price target represents a -26.5% change from current levels.
Investment risks for American Assets Trust, Inc. include: -16.7% 1-year max drawdown, stretched payout ratio. Volatility risk is characterized by a beta of 0.49x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.