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American Eagle Outfitters

Market Cap

US$6.1b

Last Updated

2021/05/15 22:28 UTC

Data Sources

Company Financials +

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

High growth potential with adequate 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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: AEO's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-0.7%

AEO

-2.3%

US Specialty Retail

-1.7%

US Market


1 Year Return

354.7%

AEO

105.9%

US Specialty Retail

50.8%

US Market

Return vs Industry: AEO exceeded the US Specialty Retail industry which returned 106.3% over the past year.

Return vs Market: AEO exceeded the US Market which returned 50.5% over the past year.


Shareholder returns

AEOIndustryMarket
7 Day-0.7%-2.3%-1.7%
30 Day6.5%0.8%-1.2%
90 Day48.5%9.3%0.4%
1 Year360.1%354.7%107.3%105.9%53.3%50.8%
3 Year68.8%58.3%105.2%97.3%61.5%51.4%
5 Year160.1%128.5%131.0%114.5%125.9%100.7%

Long-Term 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?

1.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AEO ($36.56) is trading below our estimate of fair value ($36.95)

Significantly Below Fair Value: AEO is trading below fair value, but not by a significant amount.


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 (5.6x) compared to the US Specialty Retail industry average (3.2x).


Future Growth

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

39.6%

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%).

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 (12.4% per year) is forecast to grow faster than the US market (9% per year).

High Growth Revenue: AEO's revenue (12.4% 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 (35.7%)


Past Performance

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

-30.5%

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 30.5% 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 (48.1%).


Return on Equity

High ROE: AEO has a negative Return on Equity (-19.26%), as it is currently unprofitable.


Financial Health

How is American Eagle Outfitters's financial position?


Financial Position Analysis

Short Term Liabilities: AEO's short term assets ($1.5B) exceed its short term liabilities ($858.5M).

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


Debt to Equity History and Analysis

Debt Level: AEO's debt to equity ratio (29.9%) 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 (62.3%).

Interest Coverage: AEO is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Dividend

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

1.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AEO's dividend (1.5%) is higher than the bottom 25% of dividend payers in the US market (1.25%).

High Dividend: AEO's dividend (1.5%) is low compared to the top 25% of dividend payers in the US market (3.42%).


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: AEO is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: AEO's dividends in 3 years are forecast to be well covered by earnings (20.9% payout ratio).


Next Steps

Management

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

6.8yrs

Average management tenure


CEO

Jay Schottenstein (66 yo)

7.33yrs

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 ($USD14.78M) is above average for companies of similar size in the US market ($USD6.51M).

Compensation vs Earnings: Jay's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: AEO's management team is seasoned and experienced (6.8 years average tenure).


Board Members

Experienced Board: AEO's board of directors are considered experienced (7.9 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$6.113b
  • Shares outstanding: 167.21m
  • 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


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 Analysis2021/05/15 22:28
End of Day Share Price2021/05/14 00:00
Earnings2021/01/30
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.