AMERICAN EAGLE OUTFITTERS (AEO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AEO - US02553E1064 - Common Stock
26.81 USD
+0.94 (+3.63%)
We assign a fundamental rating of 5 out of 10 to AEO. AEO was compared to 122 industry peers in the Specialty Retail industry. Both the profitability and the financial health of AEO get a neutral evaluation. Nothing too spectacular is happening here. AEO has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
AEO had positive earnings in 4 of the past 5 years.
In the past 5 years AEO always reported a positive cash flow from operatings.
1.2 Ratios
AEO has a better Return On Assets (4.97%) than 68.85% of its industry peers.
AEO's Return On Equity of 12.82% is fine compared to the rest of the industry. AEO outperforms 70.49% of its industry peers.
AEO has a better Return On Invested Capital (6.32%) than 60.66% 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 12.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.97% | ||
| ROE | 12.82% | ||
| ROIC | 6.32% |
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 (3.90%) than 72.13% of its industry peers.
In the last couple of years the Profit Margin of AEO has grown nicely.
AEO's Operating Margin of 5.43% is fine compared to the rest of the industry. AEO outperforms 68.85% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.43% | ||
| PM (TTM) | 3.9% | ||
| GM | 36.95% |
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) below the Cost of Capital (WACC), AEO is destroying 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 3.51 indicates that AEO is not in any danger for bankruptcy at the moment.
AEO has a Altman-Z score of 3.51. This is amongst the best in the industry. AEO outperforms 80.33% 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.
The Debt to FCF ratio of AEO (1.35) is better than 78.69% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that AEO is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.13, AEO is doing good in the industry, outperforming 68.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | 3.51 |
ROIC/WACC0.65
WACC9.7%
2.3 Liquidity
A Current Ratio of 1.63 indicates that AEO should not have too much problems paying its short term obligations.
AEO's Current ratio of 1.63 is fine compared to the rest of the industry. AEO outperforms 67.21% of its industry peers.
AEO has a Quick Ratio of 1.63. This is a bad value and indicates that AEO is not financially healthy enough and could expect problems in meeting its short term obligations.
AEO has a Quick ratio (0.59) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The earnings per share for AEO have decreased strongly by -32.42% in the last year.
AEO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.41% yearly.
AEO shows a decrease in Revenue. In the last year, the revenue decreased by -1.15%.
The Revenue has been growing slightly by 4.34% on average over the past years.
EPS 1Y (TTM)-32.42%
EPS 3Y-7.2%
EPS 5Y3.41%
EPS Q2Q%10.42%
Revenue 1Y (TTM)-1.15%
Revenue growth 3Y2.07%
Revenue growth 5Y4.34%
Sales Q2Q%5.71%
3.2 Future
AEO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.45% yearly.
The Revenue is expected to grow by 2.64% on average over the next years.
EPS Next Y-22.53%
EPS Next 2Y-3.17%
EPS Next 3Y2.45%
EPS Next 5YN/A
Revenue Next Year2.73%
Revenue Next 2Y3.01%
Revenue Next 3Y2.64%
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
A Price/Earnings ratio of 21.80 indicates a rather expensive valuation of AEO.
Based on the Price/Earnings ratio, AEO is valued a bit cheaper than 74.59% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.25. AEO is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.34 indicates a correct valuation of AEO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AEO indicates a somewhat cheap valuation: AEO is cheaper than 73.77% of the companies listed in the same industry.
AEO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.8 | ||
| Fwd PE | 16.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AEO is valued a bit cheaper than the industry average as 66.39% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, AEO is valued a bit cheaper than 64.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.22 | ||
| EV/EBITDA | 8.7 |
4.3 Compensation for Growth
The decent profitability rating of AEO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)6.4
EPS Next 2Y-3.17%
EPS Next 3Y2.45%
5. Dividend
5.1 Amount
AEO has a Yearly Dividend Yield of 1.80%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.13, AEO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.92, AEO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
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 recently.
Dividend Growth(5Y)-1.76%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
42.14% of the earnings are spent on dividend by AEO. This is a bit on the high side, but may be sustainable.
DP42.14%
EPS Next 2Y-3.17%
EPS Next 3Y2.45%
NYSE:AEO (1/13/2026, 12:26:50 PM)
26.81
+0.94 (+3.63%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners102.52%
Inst Owner Change0.02%
Ins Owners6.89%
Ins Owner Change-4.65%
Market Cap4.54B
Revenue(TTM)5.34B
Net Income(TTM)208.42M
Analysts51.58
Price Target23.57 (-12.09%)
Short Float %10.58%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
Yearly Dividend0.5
Dividend Growth(5Y)-1.76%
DP42.14%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)1.03%
PT rev (3m)41.68%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)20.51%
EPS NY rev (1m)13.74%
EPS NY rev (3m)19.27%
Revenue NQ rev (1m)0.57%
Revenue NQ rev (3m)5.99%
Revenue NY rev (1m)2.41%
Revenue NY rev (3m)2.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.8 | ||
| Fwd PE | 16.34 | ||
| P/S | 0.85 | ||
| P/FCF | 29.22 | ||
| P/OCF | 10.71 | ||
| P/B | 2.79 | ||
| P/tB | 3.34 | ||
| EV/EBITDA | 8.7 |
EPS(TTM)1.23
EY4.59%
EPS(NY)1.64
Fwd EY6.12%
FCF(TTM)0.92
FCFY3.42%
OCF(TTM)2.5
OCFY9.34%
SpS31.54
BVpS9.6
TBVpS8.03
PEG (NY)N/A
PEG (5Y)6.4
Graham Number16.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.97% | ||
| ROE | 12.82% | ||
| ROCE | 8.69% | ||
| ROIC | 6.32% | ||
| ROICexc | 6.54% | ||
| ROICexgc | 7.12% | ||
| OM | 5.43% | ||
| PM (TTM) | 3.9% | ||
| GM | 36.95% | ||
| FCFM | 2.91% |
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 Turnover1.27
Health
| Industry Rank | Sector 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 | 3.51 |
F-Score5
WACC9.7%
ROIC/WACC0.65
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)-32.42%
EPS 3Y-7.2%
EPS 5Y3.41%
EPS Q2Q%10.42%
EPS Next Y-22.53%
EPS Next 2Y-3.17%
EPS Next 3Y2.45%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.15%
Revenue growth 3Y2.07%
Revenue growth 5Y4.34%
Sales Q2Q%5.71%
Revenue Next Year2.73%
Revenue Next 2Y3.01%
Revenue Next 3Y2.64%
Revenue Next 5YN/A
EBIT growth 1Y-32.94%
EBIT growth 3Y-9.64%
EBIT growth 5Y7.23%
EBIT Next Year19.15%
EBIT Next 3Y15%
EBIT Next 5YN/A
FCF growth 1Y-72.83%
FCF growth 3Y53.76%
FCF growth 5Y3.73%
OCF growth 1Y-45.45%
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.
What is the valuation status for AEO stock?
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.
What is the valuation of AMERICAN EAGLE OUTFITTERS based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AMERICAN EAGLE OUTFITTERS (AEO) is 21.8 and the Price/Book (PB) ratio is 2.79.
What is the financial health of AMERICAN EAGLE OUTFITTERS (AEO) stock?
The financial health rating of AMERICAN EAGLE OUTFITTERS (AEO) is 6 / 10.