NYSE:AEO

Stock Analysis Report

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.

Snowflake

Fundamentals

Excellent balance sheet established dividend payer.


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


Market Performance


7 Day Return

10.1%

AEO

1.3%

US Specialty Retail

0.07%

US Market


1 Year Return

-25.4%

AEO

8.0%

US Specialty Retail

8.9%

US Market

Return vs Industry: AEO underperformed the US Specialty Retail industry which returned 8% over the past year.

Return vs Market: AEO underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

AEOIndustryMarket
7 Day10.1%1.3%0.07%
30 Day1.4%5.0%-0.3%
90 Day-8.1%3.3%-1.6%
1 Year-23.0%-25.4%9.8%8.0%11.3%8.9%
3 Year7.2%-2.4%44.6%37.1%46.3%36.8%
5 Year47.7%26.3%55.9%42.6%62.1%44.3%

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?

21.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AEO ($16.47) is trading below our estimate of fair value ($21)

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 good value based on its PE Ratio (10.7x) compared to the Specialty Retail industry average (15.7x).

PE vs Market: AEO is good value based on its PE Ratio (10.7x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: AEO is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: AEO is overvalued based on its PB Ratio (2.3x) compared to the US Specialty Retail industry average (1.5x).


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?

3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AEO's forecast earnings growth (3.6% per year) is above the savings rate (2.7%).

Earnings vs Market: AEO's earnings (3.6% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: AEO's earnings are forecast to grow, but not significantly.

Revenue vs Market: AEO's revenue (4.5% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: AEO's revenue (4.5% 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 (22.6%)


Next Steps

Past Performance

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

19.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AEO's earnings have grown by 19.7% per year over the past 5 years.

Accelerating Growth: AEO's earnings growth over the past year (3.8%) is below its 5-year average (19.7% per year).

Earnings vs Industry: AEO earnings growth over the past year (3.8%) underperformed the Specialty Retail industry 8.3%.


Return on Equity

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


Return on Assets

ROA vs Industry: AEO has a higher Return on Assets than the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: AEO's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is American Eagle Outfitters's financial position?


Financial Position Analysis

Short Term Liabilities: AEO's short term assets ($1.0B) exceeds its short term liabilities ($763.6M)

Long Term Liabilities: AEO's short term assets (1.0B) do not cover its long term liabilities (1.4B)


Debt to Equity History and Analysis

Debt Level: AEO is debt free.

Reducing Debt: AEO has not had any debt for past 5 years.

Debt Coverage: AEO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: AEO has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: AEO has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if AEO's debt is covered by short term assets.


Next Steps

Dividend

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

3.34%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years3.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AEO's dividend (3.34%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: AEO's dividend (3.34%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: AEO's dividends per share have been stable 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 reasonably low payout ratio (35.8%), 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 (38.8% payout ratio).


Next Steps

Management

What is the CEO of American Eagle Outfitters's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Jay Schottenstein (65yo)

5.8yrs

Tenure

US$10,211,180

Compensation

Mr. Jay L. Schottenstein has been Executive Chairman and Director at DSW Inc. since March 2005. Mr. Schottenstein has been the Executive Chairman of American Eagle Outfitters, Inc. since March 1992 and has ...


CEO Compensation Analysis

Compensation vs. Market: Jay's total compensation ($USD10.21M) is about average for companies of similar size in the US market ($USD5.11M).

Compensation vs Earnings: Jay's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.2yrs

Average Tenure

52yo

Average Age

Experienced Management: AEO's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

7.5yrs

Average Tenure

65yo

Average Age

Experienced Board: AEO's board of directors are considered experienced (7.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$273,60819 Dec 18
Andrew McLean
EntityIndividual
Shares14,984
Max PriceUS$18.26

Ownership Breakdown


Management Team

  • Jay Schottenstein (65yo)

    Executive Chairman of the Board & CEO

    • Tenure: 5.8yrs
    • Compensation: US$10.21m
  • Michael Rempell (45yo)

    Executive VP & COO

    • Tenure: 7.3yrs
    • Compensation: US$5.31m
  • Jennifer Foyle (52yo)

    Executive VP & Global Brand President of Aerie

    • Tenure: 0.3yrs
    • Compensation: US$6.88m
  • Kyle Andrew (52yo)

    Chief Marketing Officer & Executive VP

    • Tenure: 3.3yrs
  • Chad Kessler (46yo)

    Executive Vice President & Global Brand President of American Eagle Outfitters

    • Tenure: 0.3yrs
    • Compensation: US$7.06m
  • Judy Meehan

    Vice President of Investor Relation

    • Tenure: 19.8yrs
  • Stacy Siegal (52yo)

    Executive VP & General Counsel

    • Tenure: 2.9yrs
  • Bob Madore (54yo)

    Executive VP & CFO

    • Tenure: 3yrs
    • Compensation: US$4.99m
  • Jen Stoecklein

    Senior Director of Governance & Compliance and Corporate Secretary

    • Tenure: 6.1yrs
  • James Keefer (40yo)

    VP, Chief Accounting Officer & Controller

    • Tenure: 2yrs

Board Members

  • Cary McMillan (61yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$325.00k
  • Jay Schottenstein (65yo)

    Executive Chairman of the Board & CEO

    • Tenure: 5.8yrs
    • Compensation: US$10.21m
  • Janice Page (71yo)

    Independent Director

    • Tenure: 15.3yrs
    • Compensation: US$320.00k
  • Tom Ketteler (76yo)

    Independent Director

    • Tenure: 8.7yrs
    • Compensation: US$302.50k
  • Deb Henretta (58yo)

    Independent Director

    • Tenure: 0.7yrs
  • David Sable (65yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$247.50k
  • Noel Spiegel (71yo)

    Lead Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$395.00k
  • Suja Chandrasekaran (52yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$211.80k

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$2.783b
  • Shares outstanding: 168.96m
  • Website: https://www.aeo-inc.com

Number of Employees


Location

  • American Eagle Outfitters, Inc.
  • 77 Hot Metal Street
  • Pittsburgh
  • Pennsylvania
  • 15203
  • 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 also provides jeans,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:59
End of Day Share Price2019/10/22 00:00
Earnings2019/08/03
Annual Earnings2019/02/02


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.