NYSE:AEO

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American Eagle Outfitters

Executive Summary

American Eagle Outfitters, Inc. operates as a specialty retailer that provides clothing, accessories, and personal care products under the American Eagle and Aerie brands. More Details


Snowflake Analysis

Reasonable growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

How has American Eagle Outfitters's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AEO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.2%

AEO

-0.9%

US Specialty Retail

0.4%

US Market


1 Year Return

-9.7%

AEO

21.8%

US Specialty Retail

17.8%

US Market

Return vs Industry: AEO underperformed the US Specialty Retail industry which returned 21.8% over the past year.

Return vs Market: AEO underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

AEOIndustryMarket
7 Day3.2%-0.9%0.4%
30 Day2.4%8.0%6.1%
90 Day49.8%15.3%8.9%
1 Year-8.8%-9.7%23.1%21.8%20.5%17.8%
3 Year19.7%12.0%88.0%79.7%42.3%32.9%
5 Year10.0%-3.8%67.9%54.9%84.2%63.4%

Price Volatility Vs. Market

How volatile is American Eagle Outfitters's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is American Eagle Outfitters undervalued compared to its fair value and its price relative to the market?

2.44x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: AEO ($14.68) is trading above our estimate of fair value ($12.06)

Significantly Below Fair Value: AEO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AEO is unprofitable, so we can't compare its PE Ratio to the US Specialty Retail industry average.

PE vs Market: AEO is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AEO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AEO is overvalued based on its PB Ratio (2.4x) compared to the US Specialty Retail industry average (2x).


Next Steps

Future Growth

How is American Eagle Outfitters forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

41.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AEO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: AEO is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AEO's is expected to become profitable in the next 3 years.

Revenue vs Market: AEO's revenue (9.7% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: AEO's revenue (9.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AEO's Return on Equity is forecast to be high in 3 years time (24.1%)


Next Steps

Past Performance

How has American Eagle Outfitters performed over the past 5 years?

-12.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AEO is currently unprofitable.

Growing Profit Margin: AEO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AEO is unprofitable, and losses have increased over the past 5 years at a rate of 12% per year.

Accelerating Growth: Unable to compare AEO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AEO is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (3%).


Return on Equity

High ROE: AEO has a negative Return on Equity (-18.58%), as it is currently unprofitable.


Next Steps

Financial Health

How is American Eagle Outfitters's financial position?


Financial Position Analysis

Short Term Liabilities: AEO's short term assets ($1.6B) exceed its short term liabilities ($840.4M).

Long Term Liabilities: AEO's short term assets ($1.6B) do not cover its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: AEO's debt to equity ratio (51.8%) is considered high.

Reducing Debt: Insufficient data to determine if AEO's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: AEO's debt is well covered by operating cash flow (50.6%).

Interest Coverage: Insufficient data to determine if AEO's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is American Eagle Outfitters's current dividend yield, its reliability and sustainability?

2.11%

Forecast Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AEO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AEO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AEO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AEO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: AEO is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AEO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.5yrs

Average management tenure


CEO

Jay Schottenstein (66 yo)

6.75yrs

Tenure

US$8,086,131

Compensation

Mr. Jay L. Schottenstein has been Executive Chairman and Director at Designer Brands Inc. (formerly known as DSW Inc.) since March 2005. Mr. Schottenstein has been the Executive Chairman of American Eagle ...


CEO Compensation Analysis

Compensation vs Market: Jay's total compensation ($USD8.09M) is above average for companies of similar size in the US market ($USD5.60M).

Compensation vs Earnings: Jay's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jay Schottenstein
Executive Chairman of the Board & CEO6.75yrsUS$8.09m6.22%
$ 151.7m
Michael Rempell
Executive VP & COO8.33yrsUS$2.97m0.10%
$ 2.5m
Charles Kessler
Executive VP & Global Brand President of American Eagle Outfitters1.33yrsUS$4.02m0.052%
$ 1.3m
Jennifer Foyle
Chief Creative Officer1.33yrsUS$3.96m0.063%
$ 1.5m
Mike Mathias
Executive VP & CFO0.50yrno data0.0027%
$ 66.3k
James Keefer
VP, Chief Accounting Officer & Controller3yrsno data0.0054%
$ 130.7k
Judy Meehan
Vice President of Corporate Communications & Investor Relations20.75yrsno datano data
Jennifer Stoecklein
Senior Director of Governance & Compliance and Corporate Secretary7.08yrsno datano data
Stacy Siegal
Executive VP & General Counsel3.92yrsno data0.013%
$ 323.4k
Kyle Andrew
Chief Marketing Officer & Executive VP4.33yrsno datano data
Fredrick Grover
Executive Vice President of Factory Stores9.5yrsUS$1.68mno data
Dennis Parodi
Head of Stores-US and Executive Vice President17.58yrsUS$1.63mno data

5.5yrs

Average Tenure

53yo

Average Age

Experienced Management: AEO's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jay Schottenstein
Executive Chairman of the Board & CEO6.75yrsUS$8.09m6.22%
$ 151.7m
Cary McMillan
Independent Director13.33yrsUS$305.00k0%
$ 0
Janice Page
Independent Director16.33yrsUS$300.00k0.040%
$ 967.9k
Thomas Ketteler
Independent Director9.67yrsUS$280.00k0.0054%
$ 132.4k
Deborah Henretta
Independent Director1.67yrsUS$254.19k0%
$ 0
David Sable
Independent Director7.33yrsUS$260.83k0.016%
$ 381.9k
Steven Davis
Independent Directorno datano datano data
Noel Spiegel
Lead Independent Director3.42yrsUS$375.00k0.0060%
$ 146.8k
Sujatha Chandrasekaran
Independent Director2.58yrsUS$263.33k0.017%
$ 402.6k

8.5yrs

Average Tenure

66yo

Average Age

Experienced Board: AEO's board of directors are considered experienced (8.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AEO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

American Eagle Outfitters, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: American Eagle Outfitters, Inc.
  • Ticker: AEO
  • Exchange: NYSE
  • Founded: 1977
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: US$2.439b
  • Shares outstanding: 166.11m
  • Website: https://www.aeo-inc.com

Number of Employees


Location

  • American Eagle Outfitters, Inc.
  • 77 Hot Metal Street
  • Pittsburgh
  • Pennsylvania
  • 15203-2329
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AFGDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1994
AEONYSE (New York Stock Exchange)YesCommon StockUSUSDApr 1994

Biography

American Eagle Outfitters, Inc. operates as a specialty retailer that provides clothing, accessories, and personal care products under the American Eagle and Aerie brands. The company provides jeans, and s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 05:16
End of Day Share Price2020/10/23 00:00
Earnings2020/08/01
Annual Earnings2020/02/01


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.