(AEO) American Eagle Outfitters - Overview
Sector: Consumer Cyclical | Industry: Apparel Retail | Exchange: NYSE (USA) | Market Cap: 2.769m USD | Total Return: 53.8% in 12m
Avg Turnover: 70.9M
EPS Trend: -10.3%
Qual. Beats: -1
Rev. Trend: 77.7%
Qual. Beats: 3
Warnings
No concerns identified
Tailwinds
No distinct edge detected
American Eagle Outfitters, Inc. (AEO) is a global specialty retailer headquartered in Pittsburgh, Pennsylvania. The company operates a multi-brand portfolio including its namesake American Eagle brand, the Aerie intimates and activewear line, Todd Snyder menswear, and the Unsubscribed luxury label. Its distribution network spans company-owned stores, licensed locations, wholesale partnerships, and diverse e-commerce platforms.
Operating within the apparel retail sector, AEO utilizes a vertical integration model where it manages the design, marketing, and distribution of its proprietary brands. The company has strategically diversified into the high-growth athleisure and intimates categories through its Aerie and OFFLINE brands to reduce reliance on traditional denim and casual wear. This segment often commands higher customer loyalty and recurring purchase cycles compared to standard seasonal fashion.
To evaluate how these brand expansions impact long-term shareholder returns, investors may find further analysis on ValueRay useful. The company’s multi-channel approach allows it to capture market share across various price points and demographics, from value-oriented youth consumers to premium menswear segments.
- Aerie brand expansion and market share gains drive long-term revenue growth
- Inventory management and supply chain optimization improve consolidated gross margins
- Consumer discretionary spending trends impact core American Eagle denim sales
- Digital channel penetration and e-commerce performance influence overall operating leverage
- Rising labor and freight costs pressure North American retail profit margins
| Net Income: 192.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -6.01 > 1.0 |
| NWC/Revenue: 8.16% < 20% (prev 8.85%; Δ -0.69% < -1%) |
| CFO/TA 0.02 > 3% & CFO 95.0m > Net Income 192.0m |
| Net Debt (1.49b) to EBITDA (543.6m): 2.75 < 3 |
| Current Ratio: 1.52 > 1.5 & < 3 |
| Outstanding Shares: last quarter (175.7m) vs 12m ago -9.20% < -2% |
| Gross Margin: 32.99% > 18% (prev 0.35%; Δ 3.26k% > 0.5%) |
| Asset Turnover: 139.6% > 50% (prev 139.1%; Δ 0.53% > 0%) |
| Interest Coverage Ratio: 75.18 > 6 (EBITDA TTM 543.6m / Interest Expense TTM 4.33m) |
| A: 0.11 (Total Current Assets 1.31b - Total Current Liabilities 865.6m) / Total Assets 4.04b |
| B: 0.63 (Retained Earnings 2.55b / Total Assets 4.04b) |
| C: 0.08 (EBIT TTM 325.6m / Avg Total Assets 3.94b) |
| D: 1.08 (Book Value of Equity 2.54b / Total Liabilities 2.35b) |
| Altman-Z'' = 4.48 = AA |
| DSRI: 0.96 (Receivables 258.6m/262.4m, Revenue 5.50b/5.33b) |
| GMI: 1.07 (GM 32.99% / 35.22%) |
| AQI: 1.01 (AQ_t 0.11 / AQ_t-1 0.11) |
| SGI: 1.03 (Revenue 5.50b / 5.33b) |
| TATA: 0.02 (NI 192.0m - CFO 95.0m) / TA 4.04b) |
| Beneish M = -2.95 (Cap -4..+1) = A |
As of May 26, 2026, the stock is trading at USD 16.53 with a total of 3,579,300 shares traded.
Over the past week, the price has changed by +8.11%,
over one month by -7.60%,
over three months by -30.77% and
over the past year by +53.76%.
American Eagle Outfitters has received a consensus analysts rating of 3.09. Therefore, it is recommended to hold AEO.
- StrongBuy: 1
- Buy: 0
- Hold: 9
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 23.1 | 39.8% |
P/E Trailing = 15.1651
P/E Forward = 11.6686
P/S = 0.4992
P/B = 1.6355
P/EG = 3.3395
Revenue TTM = 5.50b USD
EBIT TTM = 325.6m USD
EBITDA TTM = 543.6m USD
Long Term Debt = 28.9m USD (from longTermDebtTotal, last fiscal year)
Short Term Debt = 318.1m USD (from shortTermDebt, last quarter)
Debt = 1.73b USD (from shortLongTermDebtTotal, last quarter) (leases 1.70b already included)
Net Debt = 1.49b USD (calculated: Debt 1.73b - CCE 238.9m)
Enterprise Value = 4.26b USD (2.77b + Debt 1.73b - CCE 238.9m)
Interest Coverage Ratio = 75.18 (Ebit TTM 325.6m / Interest Expense TTM 4.33m)
EV/FCF = 168.5x (Enterprise Value 4.26b / FCF TTM 25.3m)
FCF Yield = 0.59% (FCF TTM 25.3m / Enterprise Value 4.26b)
FCF Margin = 0.46% (FCF TTM 25.3m / Revenue TTM 5.50b)
Net Margin = 3.49% (Net Income TTM 192.0m / Revenue TTM 5.50b)
Gross Margin = 32.99% ((Revenue TTM 5.50b - Cost of Revenue TTM 3.68b) / Revenue TTM)
Gross Margin QoQ = 33.99% (prev 36.61%)
Tobins Q-Ratio = 1.05 (Enterprise Value 4.26b / Total Assets 4.04b)
Interest Expense / Debt = 0.25% (Interest Expense 4.33m / Debt 1.73b)
Taxrate = 24.16% (26.6m / 110.3m)
NOPAT = 246.9m (EBIT 325.6m * (1 - 24.16%))
Current Ratio = 1.52 (Total Current Assets 1.31b / Total Current Liabilities 865.6m)
Debt / Equity = 1.02 (Debt 1.73b / totalStockholderEquity, last quarter 1.69b)
Debt / EBITDA = 2.75 (Net Debt 1.49b / EBITDA 543.6m)
Debt / FCF = 59.06 (Net Debt 1.49b / FCF TTM 25.3m)
Total Stockholder Equity = 1.58b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.88% (Net Income 192.0m / Total Assets 4.04b)
RoE = 12.12% (Net Income TTM 192.0m / Total Stockholder Equity 1.58b)
RoCE = 20.19% (EBIT 325.6m / Capital Employed (Equity 1.58b + L.T.Debt 28.9m))
RoIC = 7.58% (NOPAT 246.9m / Invested Capital 3.26b)
WACC = 6.84% (E(2.77b)/V(4.50b) * Re(11.01%) + D(1.73b)/V(4.50b) * Rd(0.25%) * (1-Tc(0.24)))
Discount Rate = 11.01% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -70.47 | Cagr: -5.10%
[DCF] Terminal Value 73.10% ; FCFF base≈116.9m ; Y1≈102.5m ; Y5≈82.8m
[DCF] Fair Price = N/A (negative equity: EV 1.33b - Net Debt 1.49b = -164.9m; debt exceeds intrinsic value)
EPS Correlation: -10.35 | EPS CAGR: -2.60% | SUE: -1.99 | # QB: -1
Revenue Correlation: 77.71 | Revenue CAGR: 2.60% | SUE: 0.93 | # QB: 3
EPS current Quarter (2026-07-31): EPS=0.28 | Chg30d=-5.66% | Revisions=-20% | Analysts=3
EPS current Year (2027-01-31): EPS=1.73 | Chg30d=-0.19% | Revisions=+0% | GrowthEPS=+58.4% | GrowthRev=+5.3%
EPS next Year (2028-01-31): EPS=1.90 | Chg30d=-0.17% | Revisions=+20% | GrowthEPS=+10.0% | GrowthRev=+3.5%
[Analyst] Revisions Ratio: -20%