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.


Snowflake Analysis

Established dividend payer with reasonable growth potential.


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

11.5%

AEO

2.6%

US Specialty Retail

0.7%

US Market


1 Year Return

-18.9%

AEO

21.3%

US Specialty Retail

20.1%

US Market

Return vs Industry: AEO underperformed the US Specialty Retail industry which returned 16.9% over the past year.

Return vs Market: AEO underperformed the US Market which returned 17.1% over the past year.


Shareholder returns

AEOIndustryMarket
7 Day11.5%2.6%0.7%
30 Day17.3%18.2%6.4%
90 Day61.3%33.5%20.1%
1 Year-17.3%-18.9%22.4%21.3%22.6%20.1%
3 Year15.0%6.6%71.7%64.4%45.1%35.7%
5 Year-16.8%-27.8%36.2%25.8%79.7%60.3%

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?

2.03x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: AEO ($12.21) is trading above our estimate of fair value ($10.1)

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 (2x) 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 14 analysts?

38.4%

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 (7.8% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: AEO's revenue (7.8% 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 (21.2%)


Next Steps

Past Performance

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

-0.4%

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 0.4% 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 (-16.1%).


Return on Equity

High ROE: AEO has a negative Return on Equity (-10.7%), 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 ($662.2M).

Long Term Liabilities: AEO's short term assets ($1.6B) do not cover its long term liabilities ($2.0B).


Debt to Equity History and Analysis

Debt Level: AEO's debt to equity ratio (64.5%) 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 (30.8%).

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


Balance Sheet


Next Steps

Dividend

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

4.50%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: AEO's dividend (4.5%) is higher than the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: AEO's dividend (4.5%) is in the top 25% of dividend payers in the US market (4.3%)


Stability and Growth of Payments

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: 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 covered by earnings (59% payout ratio).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Jay Schottenstein (66 yo)

6.58yrs

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 ($USD8.09M) is above average for companies of similar size in the US market ($USD4.53M).

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 & CEO6.58yrsUS$8.09m6.24%
$ 126.1m
Michael Rempell
Executive VP & COO8.17yrsUS$2.97m0.10%
$ 2.1m
Charles Kessler
Executive VP & Global Brand President of American Eagle Outfitters1.17yrsUS$4.02m0.061%
$ 1.2m
Jennifer Foyle
Executive VP & Global Brand President of Aerie1.17yrsUS$3.96m0.083%
$ 1.7m
Robert Madore
Executive Officer0.33yrUS$2.15m0.012%
$ 246.3k
Mike Mathias
Executive VP & CFO0.33yrno data0.0027%
$ 55.2k
James Keefer
VP, Chief Accounting Officer & Controller2.83yrsno data0.0068%
$ 136.6k
Judy Meehan
Vice President of Corporate Communications & Investor Relations20.58yrsno datano data
Jennifer Stoecklein
Senior Director of Governance & Compliance and Corporate Secretary6.92yrsno datano data
Stacy Siegal
Executive VP & General Counsel3.75yrsno data0.013%
$ 269.0k
Kyle Andrew
Chief Marketing Officer & Executive VP4.17yrsno datano data
Fredrick Grover
Executive Vice President of Factory Stores9.33yrsUS$1.68mno data

4.0yrs

Average Tenure

53yo

Average Age

Experienced Management: AEO's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jay Schottenstein
Executive Chairman of the Board & CEO6.58yrsUS$8.09m6.24%
$ 126.1m
Cary McMillan
Independent Director13.17yrsUS$305.00kno data
Janice Page
Independent Director16.17yrsUS$300.00k0.038%
$ 774.4k
Thomas Ketteler
Independent Director9.5yrsUS$280.00k0.0054%
$ 110.1k
Deborah Henretta
Independent Director1.5yrsUS$254.19kno data
David Sable
Independent Director7.17yrsUS$260.83k0.016%
$ 317.7k
Noel Spiegel
Lead Independent Director3.25yrsUS$375.00k0.0060%
$ 122.1k
Sujatha Chandrasekaran
Independent Director2.42yrsUS$263.33k0.015%
$ 304.1k

8.3yrs

Average Tenure

66yo

Average Age

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 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$2.021b
  • Shares outstanding: 165.50m
  • 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 Analysis2020/08/12 23:44
End of Day Share Price2020/08/12 00:00
Earnings2020/05/02
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.