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
|Historical stock prices|
|Current Share Price||US$26.70|
|52 Week High||US$13.36|
|52 Week Low||US$38.99|
|1 Month Change||-16.06%|
|3 Month Change||-19.36%|
|1 Year Change||82.38%|
|3 Year Change||12.14%|
|5 Year Change||45.82%|
|Change since IPO||2,903.71%|
Recent News & Updates
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.
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...
|AEO||US Specialty Retail||US Market|
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.
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
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.
Is American Eagle Outfitters undervalued compared to its fair value and its price relative to the market?
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).
How is American Eagle Outfitters forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
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%)
How has American Eagle Outfitters performed over the past 5 years?
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.
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 ($1.5B).
Debt to Equity History and Analysis
Debt Level: AEO's debt to equity ratio (26%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if AEO's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: AEO's debt is well covered by operating cash flow (108.8%).
Interest Coverage: AEO's interest payments on its debt are well covered by EBIT (15.4x coverage).
What is American Eagle Outfitters's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: AEO's dividend (2.7%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: AEO's dividend (2.7%) is low compared to the top 25% of dividend payers in the US market (3.6%).
Stability and Growth of Payments
Stable Dividend: AEO's dividend payments have been volatile in the past 10 years.
Growing Dividend: AEO's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (19.1%), AEO's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AEO's dividends in 3 years are forecast to be well covered by earnings (23.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jay Schottenstein (67 yo)
Mr. Jay L. Schottenstein has been Executive Chairman and Director at Designer Brands Inc. (formerly known as DSW Inc.) since March 2005. Mr. Schottenstein has been the Executive Chairman of American Eagle...
CEO Compensation Analysis
Compensation vs Market: Jay's total compensation ($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.
Experienced Management: AEO's management team is seasoned and experienced (7.2 years average tenure).
Experienced Board: AEO's board of directors are considered experienced (8.3 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
American Eagle Outfitters, Inc.'s employee growth, exchange listings and data sources
- 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
- American Eagle Outfitters, Inc.
- 77 Hot Metal Street
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/18 22:04|
|End of Day Share Price||2021/09/17 00:00|
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.