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

4.5%

NYSE:AEO

3.0%

US Specialty Retail

-1.6%

US Market


1 Year Return

-43.4%

NYSE:AEO

-8.0%

US Specialty Retail

-3.0%

US Market

AEO underperformed the Specialty Retail industry which returned -8% over the past year.

AEO underperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

AEOIndustryMarket
7 Day4.5%3.0%-1.6%
30 Day-8.2%-4.6%-5.8%
90 Day-14.0%2.0%0.2%
1 Year-41.8%-43.4%-6.4%-8.0%-0.8%-3.0%
3 Year-5.6%-13.8%22.8%16.4%38.0%29.1%
5 Year33.5%14.3%44.9%32.0%50.8%34.1%

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 based on future cash flows and its price relative to the stock market?

45%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

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

American Eagle Outfitters is poor value based on expected growth next year.


Price Based on Value of Assets

American Eagle Outfitters is overvalued based on assets compared to the US Specialty Retail industry average.


Next Steps

Future Growth

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

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

American Eagle Outfitters's revenue is expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).

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 growth is positive but not above the United States of America market average.

American Eagle Outfitters's earnings growth is positive but not above the United States of America market average.

American Eagle Outfitters's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

American Eagle Outfitters is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

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

22.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 8.3%).


Return on Equity

American Eagle Outfitters has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

American Eagle Outfitters used its assets more efficiently than the US Specialty Retail industry average last year based on Return on Assets.


Return on Capital Employed

American Eagle Outfitters's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is American Eagle Outfitters's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

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.


Balance Sheet

High level of physical assets or inventory.

American Eagle Outfitters has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

3.78%

Expected Dividend Yield


Dividend Yield and Payments Analysis

American Eagle Outfitters's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

American Eagle Outfitters's dividend is below the markets top 25% of dividend payers in United States of America (3.93%).

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

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).


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?

3.0yrs

Average management tenure


CEO

Jay Schottenstein (65yo)

5.6yrs

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

Jay's remuneration is higher than average for companies of similar size in United States of America.

Jay's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.0yrs

Average Tenure

52yo

Average Age

The tenure for the American Eagle Outfitters management team is about average.


Board Age and Tenure

7.3yrs

Average Tenure

65yo

Average Age

The tenure for the American Eagle Outfitters board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$273,60819 Dec 18
Andrew McLean
EntityIndividual
Shares14,984
Max PriceUS$18.26
SellUS$422,58210 Sep 18
Cary McMillan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares16,993
Max PriceUS$24.87

Ownership Breakdown


Management Team

  • Jay Schottenstein (65yo)

    Executive Chairman of the Board & CEO

    • Tenure: 5.6yrs
    • Compensation: US$10.21m
  • Michael Rempell (45yo)

    Executive VP & COO

    • Tenure: 7.2yrs
    • Compensation: US$5.31m
  • Jennifer Foyle (52yo)

    Executive VP & Global Brand President of Aerie

    • Tenure: 0.2yrs
    • Compensation: US$6.88m
  • Kyle Andrew (52yo)

    Chief Marketing Officer & Executive VP

    • Tenure: 3.2yrs
  • Chad Kessler (46yo)

    Executive Vice President & Global Brand President of American Eagle Outfitters

    • Tenure: 0.2yrs
    • Compensation: US$7.06m
  • Judy Meehan

    Vice President of Investor Relation

    • Tenure: 19.6yrs
  • Stacy Siegal (52yo)

    Executive VP & General Counsel

    • Tenure: 2.8yrs
  • Bob Madore (54yo)

    Executive VP & CFO

    • Tenure: 2.8yrs
    • Compensation: US$4.99m
  • Jen Stoecklein

    Senior Director of Governance & Compliance and Corporate Secretary

    • Tenure: 5.9yrs
  • James Keefer (40yo)

    VP, Chief Accounting Officer & Controller

    • Tenure: 1.8yrs

Board Members

  • Cary McMillan (61yo)

    Independent Director

    • Tenure: 12.2yrs
    • Compensation: US$325.00k
  • Jay Schottenstein (65yo)

    Executive Chairman of the Board & CEO

    • Tenure: 5.6yrs
    • Compensation: US$10.21m
  • Janice Page (71yo)

    Independent Director

    • Tenure: 15.2yrs
    • Compensation: US$320.00k
  • Tom Ketteler (76yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$302.50k
  • Deb Henretta (58yo)

    Independent Director

    • Tenure: 0.5yrs
  • David Sable (65yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$247.50k
  • Noel Spiegel (71yo)

    Lead Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$395.00k
  • Suja Chandrasekaran (52yo)

    Independent Director

    • Tenure: 1.4yrs
    • 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$2.771b
  • Shares outstanding: 172.22m
  • 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 Analysis2019/08/25 00:07
End of Day Share Price2019/08/23 00:00
Earnings2019/05/04
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.