AMERICAN EAGLE OUTFITTERS (AEO) Stock Fundamental Analysis
USA - NYSE:AEO - US02553E1064 - Common Stock
16.89 USD
-0.09 (-0.53%)
AEO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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
In the past year AEO was profitable.
AEO had a positive operating cash flow in the past year.
AEO had positive earnings in 4 of the past 5 years.
Each year in the past 5 years AEO had a positive operating cash flow.
1.2 Ratios
AEO's Return On Assets of 4.85% is fine compared to the rest of the industry. AEO outperforms 67.77% of its industry peers.
AEO has a Return On Equity of 12.76%. This is in the better half of the industry: AEO outperforms 70.25% of its industry peers.
AEO has a better Return On Invested Capital (6.67%) than 64.46% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AEO 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
The Profit Margin of AEO (3.74%) is better than 71.90% of its industry peers.
AEO's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 5.71%, AEO is doing good in the industry, outperforming 69.42% of the companies in the same industry.
AEO's Operating Margin has improved in the last couple of years.
AEO's Gross Margin of 36.99% is in line compared to the rest of the industry. AEO outperforms 53.72% of its industry peers.
AEO's Gross Margin has improved in the last couple of years.
| 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 3.20 indicates that AEO is not in any danger for bankruptcy at the moment.
AEO has a better Altman-Z score (3.20) than 73.55% of its industry peers.
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.
AEO has a Debt to FCF ratio of 1.35. This is in the better half of the industry: AEO outperforms 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 better Debt to Equity ratio (0.13) than 70.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | 3.2 |
ROIC/WACC0.72
WACC9.27%
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.
With a decent Current ratio value of 1.62, AEO is doing good in the industry, outperforming 70.25% of the companies in the same industry.
AEO has a Quick Ratio of 1.62. This is a bad value and indicates that AEO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.71, AEO is doing good in the industry, outperforming 61.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
AEO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.52%.
AEO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.41% yearly.
The Revenue has decreased by -2.73% in the past year.
AEO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.34% yearly.
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.31, AEO is valued correctly.
Based on the Price/Earnings ratio, AEO is valued a bit cheaper than the industry average as 76.03% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.76. AEO is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 11.95, the valuation of AEO can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward 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/Forward Earnings ratio is at 22.63. AEO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.31 | ||
| Fwd PE | 11.95 |
4.2 Price Multiples
82.64% of the companies in the same industry are more expensive than AEO, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AEO indicates a somewhat cheap valuation: AEO is cheaper than 73.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.06 | ||
| EV/EBITDA | 5.62 |
4.3 Compensation for Growth
The decent profitability rating of AEO may justify a higher PE ratio.
AEO's earnings are expected to decrease with -4.11% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)4.2
EPS Next 2Y-10.12%
EPS Next 3Y-4.11%
5. Dividend
5.1 Amount
AEO has a Yearly Dividend Yield of 3.02%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.22, AEO pays a better dividend. On top of this AEO pays more dividend than 90.08% of the companies listed in the same industry.
AEO's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| 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.
AEO has decreased its dividend recently.
Dividend Growth(5Y)-1.76%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
AEO pays out 46.00% of its income as dividend. 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 (10/30/2025, 9:55:06 AM)
16.89
-0.09 (-0.53%)
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 Cap2.86B
Revenue(TTM)5.27B
Net Income(TTM)197.10M
Analysts51.11
Price Target16.64 (-1.48%)
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 | 14.31 | ||
| Fwd PE | 11.95 | ||
| P/S | 0.54 | ||
| P/FCF | 19.06 | ||
| P/OCF | 6.98 | ||
| P/B | 1.85 | ||
| P/tB | 2.24 | ||
| EV/EBITDA | 5.62 |
EPS(TTM)1.18
EY6.99%
EPS(NY)1.41
Fwd EY8.37%
FCF(TTM)0.89
FCFY5.25%
OCF(TTM)2.42
OCFY14.33%
SpS31.1
BVpS9.12
TBVpS7.55
PEG (NY)N/A
PEG (5Y)4.2
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 | 3.2 |
F-Score5
WACC9.27%
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%.