AEO

American Eagle OutfittersNYSE:AEO Stock Report

Market Cap

US$4.5b

7D

-1.2%

1Y

82.4%

Updated

18 Sep, 2021

Data

Company Financials +
AEO fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance2/6
Financial Health5/6
Dividends4/6

AEO Overview

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

American Eagle Outfitters Competitors

Price History & Performance

Summary of all time highs, changes and price drops for American Eagle Outfitters
Historical stock prices
Current Share PriceUS$26.70
52 Week HighUS$13.36
52 Week LowUS$38.99
Beta1.44
1 Month Change-16.06%
3 Month Change-19.36%
1 Year Change82.38%
3 Year Change12.14%
5 Year Change45.82%
Change since IPO2,903.71%

Recent News & Updates

Sep 07

American Eagle: Significant Downside Despite Aerie

DCF analysis indicates minimal upside potential and significant downside. Aerie and digital sales have produced strong momentum, but the expectations have become too rosy in an inherently unpredictable sector. Aerie represents a relatively insignificant portion of the business.

Sep 01
American Eagle Outfitters (NYSE:AEO) Seems To Use Debt Rather Sparingly

American Eagle Outfitters (NYSE:AEO) Seems To Use Debt Rather Sparingly

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

AEOUS Specialty RetailUS Market
7D-1.2%1.9%-0.6%
1Y82.4%53.5%33.8%

Return vs Industry: AEO exceeded the US Specialty Retail industry which returned 53.5% over the past year.

Return vs Market: AEO exceeded the US Market which returned 33.8% over the past year.

Price Volatility

Is AEO's price volatile compared to industry and market?
AEO volatility
AEO Beta1.44
Industry Beta1.56
Market Beta1

Stable Share Price: AEO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: AEO's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
197721,750Jay Schottensteinhttps://www.aeo-inc.com

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 specialty apparel and accessories for women and men; and intimates, apparel, activewear, and swim collections, as well as personal care products for women. It also offers sports-inspired apparel clothing under the Tailgate brand name; and menswear products under the Todd Snyder New York brand name.

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AEO ($26.7) is trading below our estimate of fair value ($95.18)

Significantly Below Fair Value: AEO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AEO is poor value based on its PE Ratio (16.2x) compared to the US Specialty Retail industry average (10.6x).

PE vs Market: AEO is good value based on its PE Ratio (16.2x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: AEO is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: AEO is overvalued based on its PB Ratio (3.5x) compared to the US Specialty Retail industry average (3x).


Future Growth

How is American Eagle Outfitters forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

22.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AEO's forecast earnings growth (22.8% per year) is above the savings rate (2%).

Earnings vs Market: AEO's earnings (22.8% per year) are forecast to grow faster than the US market (14.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AEO's revenue (7.4% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: AEO's revenue (7.4% 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 (34.9%)


Past Performance

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

-24.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AEO has a large one-off loss of $111.8M impacting its July 31 2021 financial results.

Growing Profit Margin: AEO became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AEO's earnings have declined by 24% per year over the past 5 years.

Accelerating Growth: AEO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AEO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (158.2%).


Return on Equity

High ROE: AEO's Return on Equity (21.8%) is considered high.


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 ($769.2M).

Long Term Liabilities: AEO's short term assets ($1.6B) exceed its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: AEO's debt to equity ratio (26%) is considered satisfactory.

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 (108.8%).

Interest Coverage: AEO's interest payments on its debt are well covered by EBIT (15.4x coverage).


Balance Sheet


Dividend

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

2.70%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 19 2021Ex Dividend DateOct 07 2021Dividend Pay DateOct 22 202115 days from Ex DividendBuy in the next 18 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: AEO's dividend (2.7%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: AEO's dividend (2.7%) is low compared to the top 25% of dividend payers in the US market (3.6%).


Stability and Growth of Payments

Stable Dividend: AEO's dividend payments have been volatile in the past 10 years.

Growing Dividend: AEO's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.1%), AEO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AEO's dividends in 3 years are forecast to be well covered by earnings (23.4% payout ratio).


Next Steps

Management

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

7.2yrs

Average management tenure


CEO

Jay Schottenstein (67 yo)

7.67yrs

Tenure

US$14,784,288

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 ($USD14.78M) is above average for companies of similar size in the US market ($USD5.27M).

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


Leadership Team

Experienced Management: AEO's management team is seasoned and experienced (7.2 years average tenure).


Board Members

Experienced Board: AEO's board of directors are considered experienced (8.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 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$4.502b
  • Shares outstanding: 168.60m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:04
End of Day Share Price2021/09/17 00:00
Earnings2021/07/31
Annual Earnings2021/01/30


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.