AMERICAN EAGLE OUTFITTERS (AEO) Stock Fundamental Analysis

NYSE:AEO • US02553E1064

25.48 USD
+0.94 (+3.83%)
At close: Feb 13, 2026
25.3 USD
-0.18 (-0.71%)
After Hours: 2/13/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall AEO gets a fundamental rating of 5 out of 10. We evaluated AEO against 120 industry peers in the Specialty Retail industry. AEO has an average financial health and profitability rating. AEO has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

6

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.
  • Of the past 5 years AEO 4 years were profitable.
  • Each year in the past 5 years AEO 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 0 200M -200M 400M 600M

1.2 Ratios

  • AEO's Return On Assets of 4.97% is fine compared to the rest of the industry. AEO outperforms 69.17% of its industry peers.
  • With a decent Return On Equity value of 12.82%, AEO is doing good in the industry, outperforming 70.00% of the companies in the same industry.
  • AEO has a Return On Invested Capital (6.32%) which is comparable to the rest of the industry.
  • The Average Return On Invested Capital over the past 3 years for AEO is below the industry average of 12.31%.
Industry RankSector 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%
AEO Yearly ROA, ROE, ROICAEO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20

1.3 Margins

  • The Profit Margin of AEO (3.90%) is better than 71.67% 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 68.33% of its industry peers.
  • AEO's Operating Margin has improved in the last couple of years.
  • AEO has a Gross Margin (36.95%) which is in line with its industry peers.
  • AEO's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
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 0 10 20 30

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

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
  • Compared to 5 years ago, AEO has more shares outstanding
  • 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 3.46 indicates that AEO is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of AEO (3.46) is better than 79.17% 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's Debt to FCF ratio of 1.35 is fine compared to the rest of the industry. AEO outperforms 79.17% 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 69.17% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 1.35
Altman-Z 3.46
ROIC/WACC0.66
WACC9.5%
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.
  • The Current ratio of AEO (1.63) is better than 67.50% of its industry peers.
  • 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 in line with its industry peers.
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

3

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.
  • 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

  • The Earnings Per Share is expected to grow by 3.53% on average over the next years.
  • AEO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.05% yearly.
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

  • 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 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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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 20.72 indicates a rather expensive valuation of AEO.
  • AEO's Price/Earnings ratio is a bit cheaper when compared to the industry. AEO is cheaper than 75.00% of the companies in the same industry.
  • AEO is valuated rather cheaply when we compare the Price/Earnings ratio to 27.97, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 14.95, which 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 75.00% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.96, AEO is valued a bit cheaper.
Industry RankSector Rank
PE 20.72
Fwd PE 14.95
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 68.33% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, AEO is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 27.77
EV/EBITDA 8.26
AEO Per share dataAEO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • The decent profitability rating of AEO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)6.08
EPS Next 2Y-1.3%
EPS Next 3Y3.53%

More info and screens

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

4

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 2.04%, AEO has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 2.26, AEO pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.79, AEO has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.04%

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
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 2Y-1.3%
EPS Next 3Y3.53%
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 0 200M -200M 400M
AEO Dividend Payout.AEO Dividend Payout, showing the Payout Ratio.AEO Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

AMERICAN EAGLE OUTFITTERS

NYSE:AEO (2/13/2026, 8:04:00 PM)

After market: 25.3 -0.18 (-0.71%)

25.48

+0.94 (+3.83%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)12-02
Earnings (Next)N/A
Inst Owners102.52%
Inst Owner Change-3.99%
Ins Owners6.89%
Ins Owner Change-4.75%
Market Cap4.32B
Revenue(TTM)5.34B
Net Income(TTM)208.42M
Analysts52
Price Target26.66 (4.63%)
Short Float %10.86%
Short Ratio2.15
Dividend
Industry RankSector Rank
Dividend Yield 2.04%
Yearly Dividend0.5
Dividend Growth(5Y)-1.76%
DP42.14%
Div Incr Years1
Div Non Decr Years1
Ex-Date01-09
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)13.08%
PT rev (3m)62.77%
EPS NQ rev (1m)6.38%
EPS NQ rev (3m)28.62%
EPS NY rev (1m)3.21%
EPS NY rev (3m)23.25%
Revenue NQ rev (1m)0.46%
Revenue NQ rev (3m)6.4%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)2.95%
Valuation
Industry RankSector Rank
PE 20.72
Fwd PE 14.95
P/S 0.81
P/FCF 27.77
P/OCF 10.18
P/B 2.65
P/tB 3.17
EV/EBITDA 8.26
EPS(TTM)1.23
EY4.83%
EPS(NY)1.7
Fwd EY6.69%
FCF(TTM)0.92
FCFY3.6%
OCF(TTM)2.5
OCFY9.83%
SpS31.54
BVpS9.6
TBVpS8.03
PEG (NY)N/A
PEG (5Y)6.08
Graham Number16.3
Profitability
Industry RankSector 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 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 3.46
F-Score5
WACC9.5%
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 20.72 and the Price/Book (PB) ratio is 2.65.


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

The financial health rating of AMERICAN EAGLE OUTFITTERS (AEO) is 6 / 10.