AMERICAN EAGLE OUTFITTERS (AEO)
US02553E1064 - Common Stock
Taking everything into account, AEO scores 6 out of 10 in our fundamental rating. AEO was compared to 126 industry peers in the Specialty Retail industry. AEO is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. AEO is not valued too expensively and it also shows a decent growth rate.
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.
AEO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.78%, AEO is in the better half of the industry, outperforming 65.87% of the companies in the same industry.
AEO has a better Return On Equity (9.80%) than 65.87% of its industry peers.
The Return On Invested Capital of AEO (9.63%) is better than 72.22% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AEO is below the industry average of 13.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.78% | ||
| ROE | 9.8% | ||
| ROIC | 9.63% |
ROA(3y)6.51%
ROA(5y)3.83%
ROE(3y)15.7%
ROE(5y)8.63%
ROIC(3y)10.41%
ROIC(5y)8.01%
1.3 Margins
With a decent Profit Margin value of 3.23%, AEO is doing good in the industry, outperforming 66.67% of the companies in the same industry.
AEO's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 6.93%, AEO is in the better half of the industry, outperforming 70.63% of the companies in the same industry.
In the last couple of years the Operating Margin of AEO has declined.
AEO has a Gross Margin (38.48%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of AEO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.93% | ||
| PM (TTM) | 3.23% | ||
| GM | 38.48% |
OM growth 3Y212.88%
OM growth 5Y-3.77%
PM growth 3YN/A
PM growth 5Y-13.02%
GM growth 3Y8%
GM growth 5Y0.86%
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.
Compared to 1 year ago, AEO has more shares outstanding
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
AEO has an Altman-Z score of 4.45. This indicates that AEO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of AEO (4.45) is better than 84.13% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.45 |
ROIC/WACC1.05
WACC9.17%
2.3 Liquidity
A Current Ratio of 1.61 indicates that AEO should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.61, AEO is doing good in the industry, outperforming 60.32% of the companies in the same industry.
AEO has a Quick Ratio of 1.61. 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's Quick ratio of 0.89 is fine compared to the rest of the industry. AEO outperforms 63.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
AEO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 53.54%, which is quite impressive.
Measured over the past 5 years, AEO shows a small growth in Earnings Per Share. The EPS has been growing by 0.53% on average per year.
The Revenue has been growing slightly by 5.45% in the past year.
The Revenue has been growing slightly by 5.45% on average over the past years.
EPS 1Y (TTM)53.54%
EPS 3YN/A
EPS 5Y0.53%
EPS growth Q2Q64.86%
Revenue 1Y (TTM)5.45%
Revenue growth 3Y11.86%
Revenue growth 5Y5.45%
Revenue growth Q2Q12.22%
3.2 Future
The Earnings Per Share is expected to grow by 13.38% on average over the next years. This is quite good.
Based on estimates for the next years, AEO will show a small growth in Revenue. The Revenue will grow by 4.08% on average per year.
EPS Next Y14.56%
EPS Next 2Y13.07%
EPS Next 3Y13.38%
EPS Next 5YN/A
Revenue Next Year3.43%
Revenue Next 2Y3.63%
Revenue Next 3Y4.08%
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 accelerating.
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
AEO is valuated correctly with a Price/Earnings ratio of 16.20.
Based on the Price/Earnings ratio, AEO is valued a bit cheaper than 70.63% of the companies in the same industry.
When comparing the Price/Earnings ratio of AEO to the average of the S&P500 Index (28.02), we can say AEO is valued slightly cheaper.
The Price/Forward Earnings ratio is 14.15, which indicates a correct valuation of AEO.
Based on the Price/Forward Earnings ratio, AEO is valued a bit cheaper than 72.22% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.58. AEO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.2 | ||
| Fwd PE | 14.15 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AEO indicates a somewhat cheap valuation: AEO is cheaper than 73.02% of the companies listed in the same industry.
AEO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AEO is cheaper than 73.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.35 | ||
| EV/EBITDA | 6.43 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as AEO's earnings are expected to grow with 13.38% in the coming years.
PEG (NY)1.11
PEG (5Y)30.3
EPS Next 2Y13.07%
EPS Next 3Y13.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.04%, AEO has a reasonable but not impressive dividend return.
AEO's Dividend Yield is rather good when compared to the industry average which is at 3.55. AEO pays more dividend than 82.54% of the companies in the same industry.
AEO's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
5.2 History
The dividend of AEO decreases each year by -5.09%.
AEO has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-5.09%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
AEO pays out 49.28% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP49.28%
EPS Next 2Y13.07%
EPS Next 3Y13.38%
AMERICAN EAGLE OUTFITTERS
NYSE:AEO (5/6/2024, 5:30:00 PM)
After market: 24.63 0 (0%)24.63
+0.33 (+1.36%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.86B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.2 | ||
| Fwd PE | 14.15 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.11
PEG (5Y)30.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.78% | ||
| ROE | 9.8% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.93% | ||
| PM (TTM) | 3.23% | ||
| GM | 38.48% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.61 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)53.54%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y14.56%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.45%
Revenue growth 3Y11.86%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y