AMERICAN EAGLE OUTFITTERS (AEO) Stock Fundamental Analysis
USA - NYSE:AEO - US02553E1064 - Common Stock
16.585 USD
+0.05 (+0.27%)
We assign a fundamental rating of 5 out of 10 to AEO. AEO was compared to 121 industry peers in the Specialty Retail industry. AEO has only an average score on both its financial health and profitability. AEO is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
AEO had positive earnings in the past year.
AEO had a positive operating cash flow in the past year.
Of the past 5 years AEO 4 years were profitable.
Each year in the past 5 years AEO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AEO (4.85%) is better than 67.77% of its industry peers.
The Return On Equity of AEO (12.76%) is better than 71.07% of its industry peers.
AEO has a better Return On Invested Capital (6.67%) than 64.46% of its industry peers.
AEO had an Average Return On Invested Capital over the past 3 years of 9.43%. This is below the industry average of 11.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.85% | ||
| ROE | 12.76% | ||
| ROIC | 6.67% |
ROA(3y)5.68%
ROA(5y)4.4%
ROE(3y)12.09%
ROE(5y)9.29%
ROIC(3y)9.43%
ROIC(5y)8.68%
1.3 Margins
AEO has a better Profit Margin (3.74%) than 71.90% of its industry peers.
AEO's Profit Margin has improved in the last couple of years.
The Operating Margin of AEO (5.71%) is better than 69.42% of its industry peers.
AEO's Operating Margin has improved in the last couple of years.
AEO has a Gross Margin of 36.99%. This is comparable to the rest of the industry: AEO outperforms 53.72% of its industry peers.
In the last couple of years the Gross Margin of AEO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.71% | ||
| PM (TTM) | 3.74% | ||
| GM | 36.99% |
OM growth 3Y-11.47%
OM growth 5Y2.77%
PM growth 3Y-9.62%
PM growth 5Y6.84%
GM growth 3Y-0.46%
GM growth 5Y2.1%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AEO is creating some value.
The number of shares outstanding for AEO has been reduced compared to 1 year ago.
The number of shares outstanding for AEO has been increased compared to 5 years ago.
There is no outstanding debt for AEO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 3.19 indicates that AEO is not in any danger for bankruptcy at the moment.
AEO has a Altman-Z score of 3.19. This is in the better half of the industry: AEO outperforms 73.55% of its industry peers.
The Debt to FCF ratio of AEO is 1.35, which is an excellent value as it means it would take AEO, only 1.35 years of fcf income to pay off all of its debts.
AEO has a better Debt to FCF ratio (1.35) than 79.34% of its industry peers.
AEO has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
AEO has a Debt to Equity ratio of 0.13. This is in the better half of the industry: AEO outperforms 70.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | 3.19 |
ROIC/WACC0.72
WACC9.31%
2.3 Liquidity
AEO has a Current Ratio of 1.62. This is a normal value and indicates that AEO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.62, AEO is in the better half of the industry, outperforming 70.25% of the companies in the same industry.
A Quick Ratio of 0.71 indicates that AEO may have some problems paying its short term obligations.
AEO has a better Quick ratio (0.71) than 61.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The earnings per share for AEO have decreased strongly by -35.52% in the last year.
Measured over the past 5 years, AEO shows a small growth in Earnings Per Share. The EPS has been growing by 3.41% on average per year.
The Revenue has decreased by -2.73% in the past year.
Measured over the past years, AEO shows a small growth in Revenue. The Revenue has been growing by 4.34% on average per year.
EPS 1Y (TTM)-35.52%
EPS 3Y-7.2%
EPS 5Y3.41%
EPS Q2Q%15.38%
Revenue 1Y (TTM)-2.73%
Revenue growth 3Y2.07%
Revenue growth 5Y4.34%
Sales Q2Q%-0.57%
3.2 Future
AEO is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.11% yearly.
The Revenue is expected to grow by 1.71% on average over the next years.
EPS Next Y-35.13%
EPS Next 2Y-10.12%
EPS Next 3Y-4.11%
EPS Next 5YN/A
Revenue Next Year0.13%
Revenue Next 2Y1%
Revenue Next 3Y1.71%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 14.06, the valuation of AEO can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of AEO indicates a somewhat cheap valuation: AEO is cheaper than 76.03% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.19. AEO is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 11.73, which indicates a very decent valuation of AEO.
Based on the Price/Forward Earnings ratio, AEO is valued a bit cheaper than the industry average as 76.03% of the companies are valued more expensively.
AEO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.06 | ||
| Fwd PE | 11.73 |
4.2 Price Multiples
AEO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AEO is cheaper than 82.64% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AEO is valued a bit cheaper than the industry average as 73.55% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.72 | ||
| EV/EBITDA | 5.48 |
4.3 Compensation for Growth
The decent profitability rating of AEO may justify a higher PE ratio.
A cheap valuation may be justified as AEO's earnings are expected to decrease with -4.11% in the coming years.
PEG (NY)N/A
PEG (5Y)4.12
EPS Next 2Y-10.12%
EPS Next 3Y-4.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.02%, AEO has a reasonable but not impressive dividend return.
AEO's Dividend Yield is rather good when compared to the industry average which is at 5.20. AEO pays more dividend than 89.26% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, AEO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
5.2 History
The dividend of AEO decreases each year by -1.76%.
AEO has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of AEO decreased recently.
Dividend Growth(5Y)-1.76%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
46.00% of the earnings are spent on dividend by AEO. This is a bit on the high side, but may be sustainable.
AEO's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP46%
EPS Next 2Y-10.12%
EPS Next 3Y-4.11%
NYSE:AEO (10/31/2025, 12:18:53 PM)
16.585
+0.05 (+0.27%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners97.49%
Inst Owner Change-0.77%
Ins Owners6.95%
Ins Owner Change-2.22%
Market Cap2.81B
Revenue(TTM)5.27B
Net Income(TTM)197.10M
Analysts51.11
Price Target16.64 (0.33%)
Short Float %16.65%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
Yearly Dividend0.5
Dividend Growth(5Y)-1.76%
DP46%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)41.72%
Min EPS beat(2)-31.49%
Max EPS beat(2)114.93%
EPS beat(4)3
Avg EPS beat(4)22.97%
Min EPS beat(4)-31.49%
Max EPS beat(4)114.93%
EPS beat(8)7
Avg EPS beat(8)16.86%
EPS beat(12)11
Avg EPS beat(12)25.13%
EPS beat(16)12
Avg EPS beat(16)13.55%
Revenue beat(2)1
Avg Revenue beat(2)0.65%
Min Revenue beat(2)-1.39%
Max Revenue beat(2)2.69%
Revenue beat(4)1
Avg Revenue beat(4)-0.37%
Min Revenue beat(4)-1.97%
Max Revenue beat(4)2.69%
Revenue beat(8)2
Avg Revenue beat(8)-0.6%
Revenue beat(12)5
Avg Revenue beat(12)-0.3%
Revenue beat(16)6
Avg Revenue beat(16)-0.73%
PT rev (1m)5.67%
PT rev (3m)39.82%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)3.89%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)41.38%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)4.54%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)3.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.06 | ||
| Fwd PE | 11.73 | ||
| P/S | 0.53 | ||
| P/FCF | 18.72 | ||
| P/OCF | 6.85 | ||
| P/B | 1.82 | ||
| P/tB | 2.2 | ||
| EV/EBITDA | 5.48 |
EPS(TTM)1.18
EY7.11%
EPS(NY)1.41
Fwd EY8.52%
FCF(TTM)0.89
FCFY5.34%
OCF(TTM)2.42
OCFY14.59%
SpS31.1
BVpS9.12
TBVpS7.55
PEG (NY)N/A
PEG (5Y)4.12
Graham Number15.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.85% | ||
| ROE | 12.76% | ||
| ROCE | 9.18% | ||
| ROIC | 6.67% | ||
| ROICexc | 6.94% | ||
| ROICexgc | 7.58% | ||
| OM | 5.71% | ||
| PM (TTM) | 3.74% | ||
| GM | 36.99% | ||
| FCFM | 2.85% |
ROA(3y)5.68%
ROA(5y)4.4%
ROE(3y)12.09%
ROE(5y)9.29%
ROIC(3y)9.43%
ROIC(5y)8.68%
ROICexc(3y)11.35%
ROICexc(5y)11.11%
ROICexgc(3y)13.03%
ROICexgc(5y)13.05%
ROCE(3y)12.97%
ROCE(5y)11.94%
ROICexgc growth 3Y-18.56%
ROICexgc growth 5Y5.17%
ROICexc growth 3Y-16.08%
ROICexc growth 5Y3.41%
OM growth 3Y-11.47%
OM growth 5Y2.77%
PM growth 3Y-9.62%
PM growth 5Y6.84%
GM growth 3Y-0.46%
GM growth 5Y2.1%
F-Score5
Asset Turnover1.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.35 | ||
| Debt/EBITDA | 0.39 | ||
| Cap/Depr | 116.39% | ||
| Cap/Sales | 4.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.19% | ||
| Profit Quality | 76.13% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 3.19 |
F-Score5
WACC9.31%
ROIC/WACC0.72
Cap/Depr(3y)102.71%
Cap/Depr(5y)104.82%
Cap/Sales(3y)4.39%
Cap/Sales(5y)4.26%
Profit Quality(3y)140.43%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-35.52%
EPS 3Y-7.2%
EPS 5Y3.41%
EPS Q2Q%15.38%
EPS Next Y-35.13%
EPS Next 2Y-10.12%
EPS Next 3Y-4.11%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.73%
Revenue growth 3Y2.07%
Revenue growth 5Y4.34%
Sales Q2Q%-0.57%
Revenue Next Year0.13%
Revenue Next 2Y1%
Revenue Next 3Y1.71%
Revenue Next 5YN/A
EBIT growth 1Y-30.65%
EBIT growth 3Y-9.64%
EBIT growth 5Y7.23%
EBIT Next Year9.52%
EBIT Next 3Y8.45%
EBIT Next 5YN/A
FCF growth 1Y-64.94%
FCF growth 3Y53.76%
FCF growth 5Y3.73%
OCF growth 1Y-37.86%
OCF growth 3Y16.22%
OCF growth 5Y2.8%
AMERICAN EAGLE OUTFITTERS / AEO FAQ
What is the ChartMill fundamental rating of AMERICAN EAGLE OUTFITTERS (AEO) stock?
ChartMill assigns a fundamental rating of 5 / 10 to AEO.
Can you provide the valuation status for AMERICAN EAGLE OUTFITTERS?
ChartMill assigns a valuation rating of 5 / 10 to AMERICAN EAGLE OUTFITTERS (AEO). This can be considered as Fairly Valued.
How profitable is AMERICAN EAGLE OUTFITTERS (AEO) stock?
AMERICAN EAGLE OUTFITTERS (AEO) has a profitability rating of 6 / 10.
Can you provide the financial health for AEO stock?
The financial health rating of AMERICAN EAGLE OUTFITTERS (AEO) is 6 / 10.
Can you provide the dividend sustainability for AEO stock?
The dividend rating of AMERICAN EAGLE OUTFITTERS (AEO) is 5 / 10 and the dividend payout ratio is 46%.