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American Eagle Outfitters

NYSE:AEO
Snowflake Description

Excellent balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AEO
NYSE
$3B
Market Cap
  1. Home
  2. US
  3. Retail
Company description

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 last earnings update was 71 days ago. More info.


Add to Portfolio Compare Print
  • American Eagle Outfitters has significant price volatility in the past 3 months.
AEO Share Price and Events
7 Day Returns
-4.2%
NYSE:AEO
-6%
US Specialty Retail
-3.1%
US Market
1 Year Returns
-44.8%
NYSE:AEO
-7.1%
US Specialty Retail
-1.7%
US Market
AEO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
American Eagle Outfitters (AEO) -4.2% -14.9% -23% -44.8% -19.1% 14.4%
US Specialty Retail -6% -9.2% -7.6% -7.1% 11.9% 28.8%
US Market -3.1% -5.3% -1.2% -1.7% 28.2% 35%
1 Year Return vs Industry and Market
  • AEO underperformed the Specialty Retail industry which returned -7.1% over the past year.
  • AEO underperformed the Market in United States of America which returned -1.7% over the past year.
Price Volatility
AEO
Industry
5yr Volatility vs Market

AEO Value

 Is American Eagle Outfitters undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of American Eagle Outfitters to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for American Eagle Outfitters.

NYSE:AEO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 13 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:AEO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Specialty Retail Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.847 (1 + (1- 21%) (60.16%))
1.167
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.17
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.167 * 5.96%)
9.68%

Discounted Cash Flow Calculation for NYSE:AEO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for American Eagle Outfitters is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:AEO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.68%)
2020 244.91 Analyst x3 223.29
2021 277.65 Analyst x2 230.79
2022 320.86 Analyst x1 243.15
2023 312.58 Analyst x1 215.97
2024 374.69 Analyst x1 236.02
2025 400.85 Est @ 6.98% 230.21
2026 423.72 Est @ 5.71% 221.86
2027 444.12 Est @ 4.81% 212.01
2028 462.72 Est @ 4.19% 201.39
2029 480.08 Est @ 3.75% 190.49
Present value of next 10 years cash flows $2,205.19
NYSE:AEO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $480.08 × (1 + 2.73%) ÷ (9.68% – 2.73%)
$7,092.18
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $7,092.18 ÷ (1 + 9.68%)10
$2,814.17
NYSE:AEO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,205.19 + $2,814.17
$5,019.36
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $5,019.36 / 172.22
$29.14
NYSE:AEO Discount to Share Price
Calculation Result
Value per share (USD) From above. $29.14
Current discount Discount to share price of $15.40
= -1 x ($15.40 - $29.14) / $29.14
47.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price American Eagle Outfitters is available for.
Intrinsic value
47%
Share price is $15.4 vs Future cash flow value of $29.14
Current Discount Checks
For American Eagle Outfitters to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • American Eagle Outfitters's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • American Eagle Outfitters's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for American Eagle Outfitters's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are American Eagle Outfitters's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:AEO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-05-04) in USD $1.50
NYSE:AEO Share Price ** NYSE (2019-08-16) in USD $15.4
United States of America Specialty Retail Industry PE Ratio Median Figure of 59 Publicly-Listed Specialty Retail Companies 13.02x
United States of America Market PE Ratio Median Figure of 3,093 Publicly-Listed Companies 17.02x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of American Eagle Outfitters.

NYSE:AEO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:AEO Share Price ÷ EPS (both in USD)

= 15.4 ÷ 1.50

10.28x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • American Eagle Outfitters is good value based on earnings compared to the US Specialty Retail industry average.
  • American Eagle Outfitters is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does American Eagle Outfitters's expected growth come at a high price?
Raw Data
NYSE:AEO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.28x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
7.2%per year
United States of America Specialty Retail Industry PEG Ratio Median Figure of 53 Publicly-Listed Specialty Retail Companies 1.72x
United States of America Market PEG Ratio Median Figure of 2,115 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

NYSE:AEO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.28x ÷ 7.2%

1.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • American Eagle Outfitters is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on American Eagle Outfitters's assets?
Raw Data
NYSE:AEO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-05-04) in USD $7.22
NYSE:AEO Share Price * NYSE (2019-08-16) in USD $15.4
United States of America Specialty Retail Industry PB Ratio Median Figure of 97 Publicly-Listed Specialty Retail Companies 1.26x
United States of America Market PB Ratio Median Figure of 5,261 Publicly-Listed Companies 1.67x
NYSE:AEO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:AEO Share Price ÷ Book Value per Share (both in USD)

= 15.4 ÷ 7.22

2.13x

* Primary Listing of American Eagle Outfitters.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • American Eagle Outfitters is overvalued based on assets compared to the US Specialty Retail industry average.
X
Value checks
We assess American Eagle Outfitters's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Specialty Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Specialty Retail industry average (and greater than 0)? (1 check)
  5. American Eagle Outfitters has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

AEO Future Performance

 How is American Eagle Outfitters expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is American Eagle Outfitters expected to grow at an attractive rate?
  • American Eagle Outfitters's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • American Eagle Outfitters's earnings growth is positive but not above the United States of America market average.
  • American Eagle Outfitters's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:AEO Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:AEO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 7.2%
NYSE:AEO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 4.7%
United States of America Specialty Retail Industry Earnings Growth Rate Market Cap Weighted Average 11%
United States of America Specialty Retail Industry Revenue Growth Rate Market Cap Weighted Average 5.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:AEO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:AEO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-01-31 5,312 587 371 1
2023-01-31 4,997 522 345 1
2022-01-31 4,579 529 312 6
2021-01-31 4,455 484 295 13
2020-01-31 4,259 455 275 13
NYSE:AEO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-05-04 4,099 436 263
2019-02-02 4,036 457 262
2018-11-03 4,020 450 280
2018-08-04 3,977 494 258
2018-05-05 3,857 412 219
2018-02-03 3,796 394 204
2017-10-28 3,664 351 165
2017-07-29 3,644 317 177
2017-04-29 3,622 346 197
2017-01-28 3,610 366 212
2016-10-29 3,618 382 240
2016-07-30 3,597 389 233

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • American Eagle Outfitters's earnings are expected to grow by 7.2% yearly, however this is not considered high growth (20% yearly).
  • American Eagle Outfitters's revenue is expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:AEO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from American Eagle Outfitters Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:AEO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-01-31 2.13 2.13 2.13 1.00
2023-01-31 1.99 1.99 1.99 1.00
2022-01-31 1.85 1.95 1.75 3.00
2021-01-31 1.72 1.81 1.65 5.00
2020-01-31 1.60 1.63 1.55 4.00
NYSE:AEO Past Financials Data
Date (Data in USD Millions) EPS *
2019-05-04 1.50
2019-02-02 1.48
2018-11-03 1.58
2018-08-04 1.45
2018-05-05 1.23
2018-02-03 1.15
2017-10-28 0.92
2017-07-29 0.98
2017-04-29 1.09
2017-01-28 1.17
2016-10-29 1.30
2016-07-30 1.25

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • American Eagle Outfitters is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess American Eagle Outfitters's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
American Eagle Outfitters has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

AEO Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare American Eagle Outfitters's growth in the last year to its industry (Specialty Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • American Eagle Outfitters has delivered over 20% year on year earnings growth in the past 5 years.
  • American Eagle Outfitters's 1-year earnings growth is less than its 5-year average (20.1% vs 22.2%)
  • American Eagle Outfitters's earnings growth has exceeded the US Specialty Retail industry average in the past year (20.1% vs 10.5%).
Earnings and Revenue History
American Eagle Outfitters's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from American Eagle Outfitters Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:AEO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-05-04 4,099.05 262.73 1,318.12
2019-02-02 4,035.72 261.90 1,297.62
2018-11-03 4,020.25 279.69 1,264.51
2018-08-04 3,976.97 257.95 1,233.22
2018-05-05 3,856.67 218.86 1,202.96
2018-02-03 3,795.55 204.16 1,187.71
2017-10-28 3,664.07 164.83 1,153.27
2017-07-29 3,644.25 176.85 1,156.10
2017-04-29 3,622.29 197.21 1,151.92
2017-01-28 3,609.87 212.45 1,152.93
2016-10-29 3,618.45 239.54 1,139.86
2016-07-30 3,596.91 233.04 1,140.68
2016-04-30 3,571.74 224.71 1,136.94
2016-01-30 3,521.85 213.29 1,126.04
2015-10-31 3,487.87 201.66 828.40
2015-08-01 3,423.09 141.43 812.24
2015-05-02 3,336.26 113.98 806.53
2015-01-31 3,282.87 88.79 1,092.87
2014-11-01 3,252.72 29.22 794.17
2014-08-02 3,255.74 45.09 795.25
2014-05-03 3,272.45 58.87 791.51
2014-02-01 3,305.80 82.98 796.51
2013-11-02 3,381.15 167.25 823.57
2013-08-03 3,434.22 224.79 840.93
2013-05-04 3,446.58 248.04 832.32
2013-02-02 3,475.80 264.10 834.60
2012-10-27 3,387.19 229.69 787.92

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • American Eagle Outfitters has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • American Eagle Outfitters used its assets more efficiently than the US Specialty Retail industry average last year based on Return on Assets.
  • American Eagle Outfitters's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess American Eagle Outfitters's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Specialty Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
American Eagle Outfitters has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

AEO Health

 How is American Eagle Outfitters's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up American Eagle Outfitters's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • American Eagle Outfitters is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • American Eagle Outfitters's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of American Eagle Outfitters's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • American Eagle Outfitters has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from American Eagle Outfitters Company Filings, last reported 3 months ago.

NYSE:AEO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-05-04 1,241.75 0.00 349.67
2019-02-02 1,287.56 0.00 425.47
2018-11-03 1,295.41 0.00 359.73
2018-08-04 1,260.58 0.00 363.32
2018-05-05 1,207.38 0.00 309.70
2018-02-03 1,246.79 0.00 413.61
2017-10-28 1,163.20 0.00 257.53
2017-07-29 1,124.30 0.00 192.56
2017-04-29 1,117.87 0.00 225.20
2017-01-28 1,204.57 0.00 378.61
2016-10-29 1,171.96 0.00 291.67
2016-07-30 1,100.40 0.00 247.93
2016-04-30 1,077.31 0.00 238.98
2016-01-30 1,051.38 0.00 260.07
2015-10-31 1,209.27 0.00 363.12
2015-08-01 1,165.68 0.00 327.29
2015-05-02 1,145.41 0.00 326.91
2015-01-31 1,139.75 0.00 410.70
2014-11-01 1,120.25 0.00 280.45
2014-08-02 1,133.85 0.00 262.63
2014-05-03 1,149.16 0.00 327.70
2014-02-01 1,166.18 0.00 428.94
2013-11-02 1,192.71 0.00 357.21
2013-08-03 1,203.67 0.00 404.87
2013-05-04 1,207.13 0.00 496.22
2013-02-02 1,221.19 0.00 630.99
2012-10-27 1,283.57 0.00 544.68
  • American Eagle Outfitters has no debt.
  • American Eagle Outfitters has not taken on any debt in the past 5 years.
  • American Eagle Outfitters has no debt, it does not need to be covered by operating cash flow.
  • American Eagle Outfitters has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess American Eagle Outfitters's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. American Eagle Outfitters has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

AEO Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.57%
Current annual income from American Eagle Outfitters dividends. Estimated to be 3.95% next year.
If you bought $2,000 of American Eagle Outfitters shares you are expected to receive $71 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • American Eagle Outfitters's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.5%).
  • American Eagle Outfitters's dividend is below the markets top 25% of dividend payers in United States of America (3.9%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:AEO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
United States of America Specialty Retail Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 2.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:AEO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-01-31 0.75 1.00
2023-01-31 0.70 1.00
2022-01-31 0.63 5.00
2021-01-31 0.61 9.00
2020-01-31 0.57 9.00
NYSE:AEO Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-06-06 0.550 3.234
2019-03-13 0.550 2.615
2019-03-06 0.550 2.614
2018-09-06 0.550 2.621
2018-06-06 0.550 2.190
2018-06-01 0.550 2.335
2018-05-31 0.550 2.458
2018-03-16 0.550 2.621
2018-03-08 0.550 2.832
2017-12-05 0.500 2.740
2017-09-07 0.500 3.628
2017-05-23 0.500 4.290
2017-03-08 0.500 3.688
2016-12-06 0.500 3.240
2016-08-30 0.500 2.831
2016-06-02 0.500 2.962
2016-03-09 0.500 3.230
2015-12-08 0.500 3.378
2015-09-11 0.500 3.180
2015-06-04 0.500 2.888
2015-03-04 0.500 2.988
2014-12-09 0.500 3.537
2014-09-02 0.500 3.648
2014-05-29 0.500 4.433
2014-03-06 0.500 4.228
2013-12-10 0.500 3.533
2013-09-03 0.500 3.373
2013-03-06 0.500 2.689
2012-09-12 0.440 2.111
2012-06-06 0.440 2.142
2012-02-28 0.440 2.497
2011-11-30 0.440 3.108
2011-09-01 0.440 3.551
2011-06-22 0.440 3.557
2011-03-02 0.440 3.013
2010-12-02 0.440 2.946
2010-09-16 0.440 2.766
2010-06-09 0.440 3.463
2010-03-03 0.400 2.428
2009-12-02 0.400 2.427
2009-10-02 0.400 2.369
2009-06-16 0.400 2.736
2009-03-05 0.400 3.042
2008-11-25 0.400 4.207
2008-09-04 0.400 3.503

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of American Eagle Outfitters's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.9x coverage).
X
Income/ dividend checks
We assess American Eagle Outfitters's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can American Eagle Outfitters afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. American Eagle Outfitters has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

AEO Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jay Schottenstein
COMPENSATION $10,211,180
AGE 65
TENURE AS CEO 5.6 years
CEO Bio

Mr. Jay L. Schottenstein has been Executive Chairman and Director at DSW Inc. (also known as Value City Department Stores Inc.; Value City Department Stores, Inc.) since March 2005. He has been the Executive Chairman of American Eagle Outfitters, Inc. since March 1992 and has been its Chief Executive Officer since December 2, 2015. Mr. Schottenstein serves as the Chairman of the Board and Chief Executive Officer of Schottenstein Realty Trust, Inc. and American Signature, Inc. He serves as the President of Schottenstein Management Company. He serves as the President at American Eagle Outfitters Canada Inc He serves as the Principal of Value City Furniture, Inc. He serves as the Principal and Chairman of SB Capital Group, LLC and the Chief Executive Officer of American Signature Furniture. He serves as a Special Advisor of Mistral Acquisition Company. He serves as the Manager of Schottenstein RVI, LLC. He served as Interim Chief Executive Officer of American Eagle Outfitters, Inc. since January 22, 2014 until December 2, 2015. He served as the Chairman and Chief Executive Officer of Schottenstein Stores Corporation since March 1992 and its President since 2001. He served as the Chief Executive Officer at DSW Inc. from March 2005 to April 2009 and Chief Executive Officer of DSW Shoe Warehouse, Inc. since March 2005. He served as the Chief Executive Officer of American Eagle Outfitters Inc. from March 1992 to December 2002. He served as the Chief Executive Officer of Retail Ventures Inc. (formerly, Value City Department Stores Inc.) from April 1991 to July 1997 and from July 1999 to December 2000. He served at Schottenstein Stores Corp. (SSC) as the President of the Furniture Division from 1985 to June 1993 and in various other executive capacities since 1976. He serves as the Chairman of the Board of Directors at SEI, Inc. He serves as the Chairman of Filene’s Basement. He serves as the Chairman of Kroehler Furniture Mfg Co Inc., and Valley Fair Corp. He served as the Chairman of American Eagle Outfitters, Inc. from March 1992 to April 2012. Mr. Schottenstein served as the Co-Chairman of BPP Liquidating Trust (formerly, Burnham Pacific Properties Inc.) since September 2000. He served as the Chairman of Retail Ventures, Inc. from March 1992 to May 2011. He served as a Vice President and Director of American Eagle Outfitters Inc.’s predecessors since 1980. He served as a Vice Chairman of SSC from 1986 to March 1992. He has been a Director of American Eagle Outfitters, Inc. since March 1992, Albertsons, LLC since 2006, Albertsons Companies, Inc. since 2006 and Safeway Inc. since January 30, 2015. He served as a Director of Retail Ventures Inc. from June 1991 to May 2011. He served as a Director of BPP Liquidating Trust (formerly, Burnham Pacific Properties Inc.) since September 2000. Mr. Schottenstein has also served as a Member of the Board of Directors for AB Acquisition LLC (Albertsons/Safeway) since 2006. Mr. Schottenstein holds a graduate degree in Business Administration from Indiana University. He serves as Chairman of the Board of DSW Inc.

CEO Compensation
  • Jay's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jay's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the American Eagle Outfitters management team in years:

3
Average Tenure
52
Average Age
  • The tenure for the American Eagle Outfitters management team is about average.
Management Team

Jay Schottenstein

TITLE
Executive Chairman of the Board & CEO
COMPENSATION
$10M
AGE
65
TENURE
5.6 yrs

Bob Madore

TITLE
Executive VP & CFO
COMPENSATION
$5M
AGE
54
TENURE
2.8 yrs

Michael Rempell

TITLE
Executive VP & COO
COMPENSATION
$5M
AGE
45
TENURE
7.2 yrs

Chad Kessler

TITLE
Executive Vice President & Global Brand President of American Eagle Outfitters
COMPENSATION
$7M
AGE
46
TENURE
0.2 yrs

Jennifer Foyle

TITLE
Executive VP & Global Brand President of Aerie
COMPENSATION
$7M
AGE
52
TENURE
0.2 yrs

James Keefer

TITLE
VP, Chief Accounting Officer & Controller
AGE
40
TENURE
1.8 yrs

Judy Meehan

TITLE
Vice President of Investor Relation
TENURE
19.6 yrs

Jen Stoecklein

TITLE
Senior Director of Governance & Compliance and Corporate Secretary
TENURE
5.9 yrs

Stacy Siegal

TITLE
Executive VP & General Counsel
AGE
52
TENURE
2.8 yrs

Kyle Andrew

TITLE
Chief Marketing Officer & Executive VP
AGE
52
TENURE
3.2 yrs
Board of Directors Tenure

Average tenure and age of the American Eagle Outfitters board of directors in years:

7.3
Average Tenure
65
Average Age
  • The tenure for the American Eagle Outfitters board of directors is about average.
Board of Directors

Jay Schottenstein

TITLE
Executive Chairman of the Board & CEO
COMPENSATION
$10M
AGE
65
TENURE
27.4 yrs

Janice Page

TITLE
Independent Director
COMPENSATION
$320K
AGE
71
TENURE
15.2 yrs

Cary McMillan

TITLE
Independent Director
COMPENSATION
$325K
AGE
61
TENURE
12.2 yrs

Noel Spiegel

TITLE
Lead Independent Director
COMPENSATION
$395K
AGE
71
TENURE
2.3 yrs

Tom Ketteler

TITLE
Independent Director
COMPENSATION
$303K
AGE
76
TENURE
8.5 yrs

David Sable

TITLE
Independent Director
COMPENSATION
$248K
AGE
65
TENURE
6.2 yrs

Suja Chandrasekaran

TITLE
Independent Director
COMPENSATION
$212K
AGE
52
TENURE
1.4 yrs

Deb Henretta

TITLE
Independent Director
AGE
58
TENURE
0.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
19. Dec 18 Sell Andrew McLean Individual 14. Dec 18 14. Dec 18 -14,984 $18.26 $-273,608
10. Sep 18 Sell Cary McMillan Individual 06. Sep 18 06. Sep 18 -16,993 $24.87 $-422,582
X
Management checks
We assess American Eagle Outfitters's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. American Eagle Outfitters has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

AEO News

Simply Wall St News

A Close Look At American Eagle Outfitters, Inc.’s (NYSE:AEO) 13% ROCE

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for American Eagle Outfitters: 0.13 = US$338m ÷ (US$3.3b - US$650m) (Based on the trailing twelve months to May 2019.) Therefore, American Eagle Outfitters has an ROCE of 13%. … How American Eagle Outfitters's Current Liabilities Impact Its ROCE Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. … What We Can Learn From American Eagle Outfitters's ROCE Overall, American Eagle Outfitters has a decent ROCE and could be worthy of further research.

Simply Wall St -

If You Had Bought American Eagle Outfitters (NYSE:AEO) Shares Five Years Ago You'd Have Made 57%

Over half a decade, American Eagle Outfitters managed to grow its earnings per share at 37% a year. … As it happens, American Eagle Outfitters's TSR for the last 5 years was 83%, which exceeds the share price return mentioned earlier. … A Different Perspective American Eagle Outfitters shareholders are down 25% for the year (even including dividends), but the market itself is up 7.0%.

Simply Wall St -

Is American Eagle Outfitters, Inc. (NYSE:AEO) A Smart Pick For Income Investors?

With American Eagle Outfitters yielding 3.2% and having paid a dividend for over 10 years, many investors likely find the company quite interesting. … American Eagle Outfitters has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see American Eagle Outfitters has grown its earnings per share at 28% per annum over the past five years. With high earnings per share growth in recent times and a modest payout ratio, we think this is an attractive combination if earnings can be reinvested to generate further growth. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

American Eagle Outfitters, Inc.'s (NYSE:AEO) 3.2% Dividend Yield Looks Pretty Interesting

For the purpose of this article, we only scrutinise the last decade of American Eagle Outfitters's dividend payments. … Dividend Growth Potential While dividend payments have been relatively reliable, it would also be nice if earnings per share (EPS) were growing, as this is essential to maintaining the dividend's purchasing power over the long term. It's good to see American Eagle Outfitters has been growing its earnings per share at 28% a year over the past 5 years. With high earnings per share growth in recent times and a modest payout ratio, we think this is an attractive combination if earnings can be reinvested to generate further growth. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. … We like that it has been delivering solid improvement in its earnings per share, and relatively consistent dividend payments.

Simply Wall St -

Should You Consider American Eagle Outfitters, Inc. (NYSE:AEO)?

NYSE:AEO Income Statement, June 4th 2019 AEO's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. … Also, relative to the rest of its peers with similar levels of earnings, AEO's share price is trading below the group's average. … NYSE:AEO Intrinsic value, June 4th 2019 Next Steps: For American Eagle Outfitters, I've compiled three relevant aspects you should further research: Future Outlook: What are well-informed industry analysts predicting for AEO’s future growth?

Simply Wall St -

Before You Buy American Eagle Outfitters, Inc. (NYSE:AEO), Consider Its Volatility

(NYSE:AEO), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … What this means for you: One potential advantage of owning low beta stocks like American Eagle Outfitters is that your overall portfolio won't be too sensitive to overall market movements.

Simply Wall St -

Should You Be Excited About American Eagle Outfitters, Inc.'s (NYSE:AEO) 20% Return On Equity?

Check out our latest analysis for American Eagle Outfitters How Do I Calculate Return On Equity? … The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for American Eagle Outfitters: 20% = US$262m ÷ US$1.3b (Based on the trailing twelve months to February 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … A company that can achieve a high return on equity without debt could be considered a high quality business.

Simply Wall St -

At US$23.52, Is American Eagle Outfitters, Inc. (NYSE:AEO) Worth Looking At Closely?

American Eagle Outfitters, Inc. … As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Today I will analyse the most recent data on American Eagle Outfitters’s outlook and valuation to see if the opportunity still exists.

Simply Wall St -

A Close Look At American Eagle Outfitters, Inc.’s (NYSE:AEO) 25% ROCE

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

Does American Eagle Outfitters, Inc.'s (NYSE:AEO) CEO Salary Compare Well With Others?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Jay Schottenstein's Compensation Compare With Similar Sized Companies. … is worth US$3.9b, and total annual CEO compensation is US$6.5m.

Simply Wall St -

AEO Company Info

Description

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, and other apparel and accessories for men and women; and intimates, activewear, and swim collections, as well as personal care products for women. In addition, it offers sports apparel under the Tailgate brand; and menswear products under the Todd Snyder New York brand name. As of March 6, 2019, it operated approximately 934 American Eagle stores, 262 Aerie stores, 5 Tailgate stand-alone stores, and 1 Todd Snyder stand-alone store in the United States, Canada, Mexico, China, and Hong Kong. It also ships to 81 countries through its Websites; and offers its merchandise at 231 locations operated by licensees in 24 countries, as well as provides products through its Websites ae.com, aerie.com, and ToddSnyder.com. American Eagle Outfitters, Inc. was founded in 1977 and is headquartered in Pittsburgh, Pennsylvania.

Details
Name: American Eagle Outfitters, Inc.
AEO
Exchange: NYSE
Founded: 1977
$2,652,251,586
172,224,129
Website: http://www.aeo-inc.com
Address: American Eagle Outfitters, Inc.
77 Hot Metal Street,
Pittsburgh,
Pennsylvania, 15203,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE AEO Common Stock New York Stock Exchange US USD 14. Apr 1994
DB AFG Common Stock Deutsche Boerse AG DE EUR 14. Apr 1994
Number of employees
Current staff
Staff numbers
27,000
American Eagle Outfitters employees.
Industry
Apparel Retail
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/16 23:58
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/08/15
Last earnings filing: 2019/06/06
Last earnings reported: 2019/05/04
Last annual earnings reported: 2019/02/02


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.