AMERICAN EAGLE OUTFITTERS (AEO) Stock Fundamental Analysis
NYSE:AEO • US02553E1064
23.65 USD
-1.61 (-6.37%)
At close: Feb 23, 2026
23.65 USD
0 (0%)
After Hours: 2/23/2026, 5:16:23 PM
We assign a fundamental rating of 5 out of 10 to AEO. AEO was compared to 123 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.
- In the past year AEO had a positive cash flow from operations.
- 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
- Looking at the Return On Assets, with a value of 4.97%, AEO is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
- With a decent Return On Equity value of 12.82%, AEO is doing good in the industry, outperforming 70.73% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 6.32%, AEO is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for AEO is below the industry average of 12.08%.
| 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
- The Profit Margin of AEO (3.90%) is better than 71.54% of its industry peers.
- In the last couple of years the Profit Margin of AEO has grown nicely.
- AEO has a Operating Margin of 5.43%. This is in the better half of the industry: AEO outperforms 69.11% of its industry peers.
- AEO's Operating Margin has improved in the last couple of years.
- AEO has a Gross Margin of 36.95%. This is comparable to the rest of the industry: AEO outperforms 53.66% of its industry peers.
- AEO's Gross Margin has improved in the last couple of years.
| 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.
- Compared to 1 year ago, AEO has less shares outstanding
- The number of shares outstanding for AEO has been increased compared to 5 years ago.
- AEO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 3.49 indicates that AEO is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.49, AEO is in the better half of the industry, outperforming 78.86% of the companies in the same industry.
- 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 78.86% 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.
- Looking at the Debt to Equity ratio, with a value of 0.13, AEO is in the better half of the industry, outperforming 68.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | 3.49 |
ROIC/WACC0.66
WACC9.55%
2.3 Liquidity
- AEO has a Current Ratio of 1.63. This is a normal value and indicates that AEO is financially healthy and should not expect problems in meeting its short term obligations.
- AEO's Current ratio of 1.63 is fine compared to the rest of the industry. AEO outperforms 66.67% 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.
- The Quick ratio of AEO (0.59) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
- AEO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.42%.
- AEO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.41% yearly.
- Looking at the last year, AEO shows a decrease in Revenue. The Revenue has decreased by -1.15% in the last 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)-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
- Based on estimates for the next years, AEO will show a small growth in Earnings Per Share. The EPS will grow by 3.53% on average per year.
- The Revenue is expected to grow by 3.05% on average over the next years.
EPS Next Y-20.04%
EPS Next 2Y-1.3%
EPS Next 3Y3.53%
EPS Next 5YN/A
Revenue Next Year3.09%
Revenue Next 2Y3.19%
Revenue Next 3Y3.05%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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
- Based on the Price/Earnings ratio of 19.23, the valuation of AEO can be described as rather expensive.
- 75.61% of the companies in the same industry are more expensive than AEO, based on the Price/Earnings ratio.
- AEO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.99.
- A Price/Forward Earnings ratio of 13.87 indicates a correct valuation of AEO.
- Based on the Price/Forward Earnings ratio, AEO is valued a bit cheaper than the industry average as 74.80% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.02, AEO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.23 | ||
| Fwd PE | 13.87 |
4.2 Price Multiples
- 68.29% of the companies in the same industry are more expensive than AEO, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, AEO is valued a bit cheaper than 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.8 | ||
| EV/EBITDA | 8.51 |
4.3 Compensation for Growth
- The decent profitability rating of AEO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.64
EPS Next 2Y-1.3%
EPS Next 3Y3.53%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.00%, AEO has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.21, AEO pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, AEO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
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
- 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 2Y-1.3%
EPS Next 3Y3.53%
23.65
-1.61 (-6.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)12-02 2025-12-02/amc
Earnings (Next)N/A N/A
Inst Owners102.52%
Inst Owner Change-5.99%
Ins Owners6.89%
Ins Owner Change5.78%
Market Cap4.01B
Revenue(TTM)5.34B
Net Income(TTM)208.42M
Analysts52
Price Target26.66 (12.73%)
Short Float %11.64%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
Yearly Dividend0.5
Dividend Growth(5Y)-1.76%
DP42.14%
Div Incr Years1
Div Non Decr Years1
Ex-Date01-09 2026-01-09 (0.125)
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)3.5%
PT rev (3m)59.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)27.52%
EPS NY rev (1m)0%
EPS NY rev (3m)23.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.23 | ||
| Fwd PE | 13.87 | ||
| P/S | 0.75 | ||
| P/FCF | 25.8 | ||
| P/OCF | 9.45 | ||
| P/B | 2.47 | ||
| P/tB | 2.95 | ||
| EV/EBITDA | 8.51 |
EPS(TTM)1.23
EY5.2%
EPS(NY)1.7
Fwd EY7.21%
FCF(TTM)0.92
FCFY3.88%
OCF(TTM)2.5
OCFY10.58%
SpS31.51
BVpS9.59
TBVpS8.03
PEG (NY)N/A
PEG (5Y)5.64
Graham Number16.29
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 | 3.49 |
F-Score5
WACC9.55%
ROIC/WACC0.66
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-20.04%
EPS Next 2Y-1.3%
EPS Next 3Y3.53%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.15%
Revenue growth 3Y2.07%
Revenue growth 5Y4.34%
Sales Q2Q%5.71%
Revenue Next Year3.09%
Revenue Next 2Y3.19%
Revenue Next 3Y3.05%
Revenue Next 5YN/A
EBIT growth 1Y-32.94%
EBIT growth 3Y-9.64%
EBIT growth 5Y7.23%
EBIT Next Year22.54%
EBIT Next 3Y15.42%
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 19.23 and the Price/Book (PB) ratio is 2.47.
What is the financial health of AMERICAN EAGLE OUTFITTERS (AEO) stock?
The financial health rating of AMERICAN EAGLE OUTFITTERS (AEO) is 6 / 10.