AMERICAN EAGLE OUTFITTERS (AEO) Fundamental Analysis & Valuation

NYSE:AEO • US02553E1064

Current stock price

17.25 USD
-0.28 (-1.6%)
At close:
17.22 USD
-0.03 (-0.17%)
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

  • AEO had positive earnings in the past year.
  • AEO had a positive operating cash flow in the past year.
  • Each year in the past 5 years AEO has been profitable.
  • AEO had a positive operating cash flow in 4 of the past 5 years.
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

  • AEO has a better Return On Assets (4.97%) than 70.97% of its industry peers.
  • AEO's Return On Equity of 12.82% is fine compared to the rest of the industry. AEO outperforms 72.58% of its industry peers.
  • With a decent Return On Invested Capital value of 6.47%, AEO is doing good in the industry, outperforming 62.90% 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

  • With a decent Profit Margin value of 3.90%, AEO is doing good in the industry, outperforming 71.77% of the companies in the same industry.
  • AEO's Profit Margin has improved in the last couple of years.
  • The Operating Margin of AEO (5.43%) is better than 69.35% of its industry peers.
  • AEO's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 36.95%, AEO is in line with its industry, outperforming 54.03% of the companies in the same industry.
  • 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

  • AEO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • AEO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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 3.18 indicates that AEO is not in any danger for bankruptcy at the moment.
  • AEO has a better Altman-Z score (3.18) than 75.81% 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's Debt to FCF ratio of 1.35 is fine compared to the rest of the industry. AEO outperforms 79.03% 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 67.74% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 1.35
Altman-Z 3.18
ROIC/WACC0.66
WACC9.78%
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.
  • With a decent Current ratio value of 1.63, AEO is doing good in the industry, outperforming 66.94% of the companies in the same industry.
  • A Quick Ratio of 0.59 indicates that AEO may have some problems paying its short term obligations.
  • AEO has a Quick ratio (0.59) which is comparable to the rest of the 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%.
  • AEO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.62% yearly.
  • The Revenue has been growing slightly by 3.16% in the past 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.
  • Based on estimates for the next years, AEO will show a small growth in Revenue. The Revenue will grow by 3.23% on average per year.
EPS Next Y11.96%
EPS Next 2Y12.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.45%
Revenue Next 2Y3.23%
Revenue Next 3YN/A
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.
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 1B 2B 3B 4B 5B
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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8

4. AEO Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 11.27, the valuation of AEO can be described as very reasonable.
  • 81.45% of the companies in the same industry are more expensive than AEO, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 25.79, AEO is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 10.07, the valuation of AEO can be described as very reasonable.
  • AEO's Price/Forward Earnings ratio is rather cheap when compared to the industry. AEO is cheaper than 83.87% of the companies in the same industry.
  • AEO is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.80, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 11.27
Fwd PE 10.07
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

  • 79.03% 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 66.94% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 18.82
EV/EBITDA 5.96
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 low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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)0.94
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

  • With a Yearly Dividend Yield of 2.85%, AEO has a reasonable but not impressive dividend return.
  • The stock price of AEO dropped by -38.04% 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 2.41. AEO pays more dividend than 83.06% of the companies in the same industry.
  • AEO's Dividend Yield is a higher than the S&P500 average which is at 1.91.
Industry RankSector Rank
Dividend Yield 2.85%

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.
  • The dividend of AEO decreased recently.
Dividend Growth(5Y)-1.76%
Div Incr Years1
Div Non Decr Years1
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

  • 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 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 (3/18/2026, 8:04:00 PM)

After market: 17.22 -0.03 (-0.17%)

17.25

-0.28 (-1.6%)

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-5.96%
Ins Owners7.15%
Ins Owner Change8.01%
Market Cap2.92B
Revenue(TTM)5.50B
Net Income(TTM)208.42M
Analysts52
Price Target26.66 (54.55%)
Short Float %10.51%
Short Ratio2.77
Dividend
Industry RankSector Rank
Dividend Yield 2.85%
Yearly Dividend0.5
Dividend Growth(5Y)-1.76%
DP42.14%
Div Incr Years1
Div Non Decr Years1
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)0%
PT rev (3m)14.25%
EPS NQ rev (1m)-0.25%
EPS NQ rev (3m)6.03%
EPS NY rev (1m)0.48%
EPS NY rev (3m)18.06%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.98%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)4.42%
Valuation
Industry RankSector Rank
PE 11.27
Fwd PE 10.07
P/S 0.55
P/FCF 18.82
P/OCF 6.9
P/B 1.8
P/tB 2.15
EV/EBITDA 5.96
EPS(TTM)1.53
EY8.87%
EPS(NY)1.71
Fwd EY9.93%
FCF(TTM)0.92
FCFY5.31%
OCF(TTM)2.5
OCFY14.5%
SpS31.51
BVpS9.59
TBVpS8.03
PEG (NY)0.94
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 3.18
F-Score5
WACC9.78%
ROIC/WACC0.66
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 Year3.45%
Revenue Next 2Y3.23%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-32.94%
EBIT growth 3Y6.79%
EBIT growth 5Y107.61%
EBIT Next Year93.85%
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 6 / 10 to AEO.


What is the valuation status for AEO stock?

ChartMill assigns a valuation rating of 8 / 10 to AMERICAN EAGLE OUTFITTERS (AEO). This can be considered as Undervalued.


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 11.27 and the Price/Book (PB) ratio is 1.8.


What is the financial health of AMERICAN EAGLE OUTFITTERS (AEO) stock?

The financial health rating of AMERICAN EAGLE OUTFITTERS (AEO) is 5 / 10.