AMERICAN EAGLE OUTFITTERS (AEO) Fundamental Analysis & Valuation

NYSE:AEO • US02553E1064

Current stock price

18.54 USD
+0.23 (+1.26%)
At close:
18.64 USD
+0.1 (+0.54%)
After Hours:

This AEO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. AEO Profitability Analysis

1.1 Basic Checks

  • In the past year AEO was profitable.
  • AEO had a positive operating cash flow in the past year.
  • In the past 5 years AEO has always been profitable.
  • Of the past 5 years AEO 4 years had a positive operating cash flow.
AEO Yearly Net Income VS EBIT VS OCF VS FCFAEO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 200M -200M 400M 600M

1.2 Ratios

  • The Return On Assets of AEO (4.97%) is better than 70.97% of its industry peers.
  • Looking at the Return On Equity, with a value of 12.82%, AEO is in the better half of the industry, outperforming 71.77% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 6.47%, AEO is in the better half of the industry, outperforming 65.32% of the companies in the same industry.
Industry RankSector Rank
ROA 4.97%
ROE 12.82%
ROIC 6.47%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
AEO Yearly ROA, ROE, ROICAEO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 10 -10 20

1.3 Margins

  • AEO's Profit Margin of 3.90% is fine compared to the rest of the industry. AEO outperforms 70.97% of its industry peers.
  • AEO's Profit Margin has improved in the last couple of years.
  • AEO's Operating Margin of 5.43% is fine compared to the rest of the industry. AEO outperforms 69.35% of its industry peers.
  • In the last couple of years the Operating Margin of AEO has grown nicely.
  • AEO has a Gross Margin (36.95%) which is in line with its industry peers.
  • In the last couple of years the Gross Margin of AEO has grown nicely.
Industry RankSector Rank
OM 5.43%
PM (TTM) 3.9%
GM 36.95%
OM growth 3Y3.4%
OM growth 5Y92.42%
PM growth 3Y11.68%
PM growth 5YN/A
GM growth 3Y1.75%
GM growth 5Y3.82%
AEO Yearly Profit, Operating, Gross MarginsAEO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 10 20 30

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5

2. AEO Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AEO is destroying value.
  • 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.
AEO Yearly Shares OutstandingAEO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
AEO Yearly Total Debt VS Total AssetsAEO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.2 Solvency

  • An Altman-Z score of 3.22 indicates that AEO is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 3.22, AEO is doing good in the industry, outperforming 75.81% of the companies in the same industry.
  • AEO has a debt to FCF ratio of 1.35. This is a very positive value and a sign of high solvency as it would only need 1.35 years to pay back of all of its debts.
  • The Debt to FCF ratio of AEO (1.35) is better than 79.84% 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.
  • With a decent Debt to Equity ratio value of 0.13, AEO is doing good in the industry, outperforming 66.94% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 1.35
Altman-Z 3.22
ROIC/WACC0.72
WACC8.93%
AEO Yearly LT Debt VS Equity VS FCFAEO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

2.3 Liquidity

  • A Current Ratio of 1.63 indicates that AEO should not have too much problems paying its short term obligations.
  • AEO has a better Current ratio (1.63) than 68.55% of its industry peers.
  • A Quick Ratio of 0.59 indicates that AEO may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.59, AEO is in line with its industry, outperforming 54.84% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.63
Quick Ratio 0.59
AEO Yearly Current Assets VS Current LiabilitesAEO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. AEO Growth Analysis

3.1 Past

  • AEO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.57%.
  • The Earnings Per Share has been growing by 15.62% on average over the past years. This is quite good.
  • Looking at the last year, AEO shows a small growth in Revenue. The Revenue has grown by 3.16% in the last year.
  • Measured over the past years, AEO shows a small growth in Revenue. The Revenue has been growing by 7.90% on average per year.
EPS 1Y (TTM)-12.57%
EPS 3Y15.62%
EPS 5YN/A
EPS Q2Q%55.56%
Revenue 1Y (TTM)3.16%
Revenue growth 3Y3.28%
Revenue growth 5Y7.9%
Sales Q2Q%9.73%

3.2 Future

  • AEO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.87% yearly.
  • AEO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.85% yearly.
EPS Next Y11.96%
EPS Next 2Y12.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.48%
Revenue Next 2Y4.42%
Revenue Next 3Y3.85%
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
AEO Yearly Revenue VS EstimatesAEO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B
AEO Yearly EPS VS EstimatesAEO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 0.5 1 1.5 2

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7

4. AEO Valuation Analysis

4.1 Price/Earnings Ratio

  • AEO is valuated correctly with a Price/Earnings ratio of 12.12.
  • AEO's Price/Earnings ratio is rather cheap when compared to the industry. AEO is cheaper than 81.45% of the companies in the same industry.
  • AEO is valuated cheaply when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 10.82, which indicates a very decent valuation of AEO.
  • Based on the Price/Forward Earnings ratio, AEO is valued cheaply inside the industry as 83.06% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 23.68. AEO is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 12.12
Fwd PE 10.82
AEO Price Earnings VS Forward Price EarningsAEO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, AEO is valued a bit cheaper than 79.03% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of AEO indicates a somewhat cheap valuation: AEO is cheaper than 66.13% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 20.23
EV/EBITDA 6.22
AEO Per share dataAEO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • AEO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The decent profitability rating of AEO may justify a higher PE ratio.
  • AEO's earnings are expected to grow with 12.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.01
PEG (5Y)N/A
EPS Next 2Y12.87%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. AEO Dividend Analysis

5.1 Amount

  • AEO has a Yearly Dividend Yield of 3.10%.
  • The stock price of AEO dropped by -30.87% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
  • AEO's Dividend Yield is rather good when compared to the industry average which is at 3.07. AEO pays more dividend than 84.68% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, AEO pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.1%

5.2 History

  • The dividend of AEO decreases each year by -1.76%.
  • AEO has been paying a dividend for at least 10 years, so it has a reliable track record.
  • AEO has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-1.76%
Div Incr Years0
Div Non Decr Years2
AEO Yearly Dividends per shareAEO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8

5.3 Sustainability

  • AEO pays out 42.14% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP42.14%
EPS Next 2Y12.87%
EPS Next 3YN/A
AEO Yearly Income VS Free CF VS DividendAEO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 200M -200M 400M
AEO Dividend Payout.AEO Dividend Payout, showing the Payout Ratio.AEO Dividend Payout.PayoutRetained Earnings

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AEO Fundamentals: All Metrics, Ratios and Statistics

AMERICAN EAGLE OUTFITTERS

NYSE:AEO (4/9/2026, 8:11:05 PM)

After market: 18.64 +0.1 (+0.54%)

18.54

+0.23 (+1.26%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)03-04
Earnings (Next)05-26
Inst Owners97.12%
Inst Owner Change-0.02%
Ins Owners7.15%
Ins Owner Change9.47%
Market Cap3.14B
Revenue(TTM)5.50B
Net Income(TTM)208.42M
Analysts53.33
Price Target24.73 (33.39%)
Short Float %9.09%
Short Ratio2.48
Dividend
Industry RankSector Rank
Dividend Yield 3.1%
Yearly Dividend0.5
Dividend Growth(5Y)-1.76%
DP42.14%
Div Incr Years0
Div Non Decr Years2
Ex-Date04-10
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)67.76%
Min EPS beat(2)20.58%
Max EPS beat(2)114.93%
EPS beat(4)3
Avg EPS beat(4)27.51%
Min EPS beat(4)-31.49%
Max EPS beat(4)114.93%
EPS beat(8)7
Avg EPS beat(8)19.34%
EPS beat(12)11
Avg EPS beat(12)19.61%
EPS beat(16)12
Avg EPS beat(16)13.35%
Revenue beat(2)2
Avg Revenue beat(2)2.31%
Min Revenue beat(2)1.92%
Max Revenue beat(2)2.69%
Revenue beat(4)2
Avg Revenue beat(4)0.6%
Min Revenue beat(4)-1.39%
Max Revenue beat(4)2.69%
Revenue beat(8)2
Avg Revenue beat(8)-0.47%
Revenue beat(12)5
Avg Revenue beat(12)-0.28%
Revenue beat(16)6
Avg Revenue beat(16)-0.79%
PT rev (1m)-7.23%
PT rev (3m)4.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.11%
EPS NY rev (1m)0%
EPS NY rev (3m)4.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)1.76%
Revenue NY rev (3m)2.24%
Valuation
Industry RankSector Rank
PE 12.12
Fwd PE 10.82
P/S 0.59
P/FCF 20.23
P/OCF 7.41
P/B 1.93
P/tB 2.31
EV/EBITDA 6.22
EPS(TTM)1.53
EY8.25%
EPS(NY)1.71
Fwd EY9.24%
FCF(TTM)0.92
FCFY4.94%
OCF(TTM)2.5
OCFY13.49%
SpS31.51
BVpS9.59
TBVpS8.03
PEG (NY)1.01
PEG (5Y)N/A
Graham Number18.17
Profitability
Industry RankSector Rank
ROA 4.97%
ROE 12.82%
ROCE 8.69%
ROIC 6.47%
ROICexc 6.7%
ROICexgc 7.3%
OM 5.43%
PM (TTM) 3.9%
GM 36.95%
FCFM 2.91%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y3.4%
OM growth 5Y92.42%
PM growth 3Y11.68%
PM growth 5YN/A
GM growth 3Y1.75%
GM growth 5Y3.82%
F-Score5
Asset Turnover1.27
Health
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 1.35
Debt/EBITDA 0.41
Cap/Depr 119.7%
Cap/Sales 5.03%
Interest Coverage 250
Cash Conversion 82.45%
Profit Quality 74.54%
Current Ratio 1.63
Quick Ratio 0.59
Altman-Z 3.22
F-Score5
WACC8.93%
ROIC/WACC0.72
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-12.57%
EPS 3Y15.62%
EPS 5YN/A
EPS Q2Q%55.56%
EPS Next Y11.96%
EPS Next 2Y12.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.16%
Revenue growth 3Y3.28%
Revenue growth 5Y7.9%
Sales Q2Q%9.73%
Revenue Next Year5.48%
Revenue Next 2Y4.42%
Revenue Next 3Y3.85%
Revenue Next 5YN/A
EBIT growth 1Y-32.94%
EBIT growth 3Y6.79%
EBIT growth 5Y107.61%
EBIT Next Year96.62%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-13.78%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y8.89%
OCF growth 3YN/A
OCF growth 5YN/A

AMERICAN EAGLE OUTFITTERS / AEO Fundamental Analysis FAQ

What is the ChartMill fundamental rating of AMERICAN EAGLE OUTFITTERS (AEO) stock?

ChartMill assigns a fundamental rating of 5 / 10 to AEO.


What is the valuation status for AEO stock?

ChartMill assigns a valuation rating of 7 / 10 to AMERICAN EAGLE OUTFITTERS (AEO). This can be considered as Undervalued.


Can you provide the profitability details for AMERICAN EAGLE OUTFITTERS?

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 5 / 10.


What is the earnings growth outlook for AMERICAN EAGLE OUTFITTERS?

The Earnings per Share (EPS) of AMERICAN EAGLE OUTFITTERS (AEO) is expected to grow by 11.96% in the next year.