AMERICAN EAGLE OUTFITTERS (AEO)
US02553E1064 - Common Stock
AEO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. While AEO has a great health rating, its profitability is only average at the moment. AEO may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make AEO a good candidate for value investing.
1. Profitability
1.1 Basic Checks
AEO had positive earnings in the past year.
AEO had a positive operating cash flow in the past year.
Of the past 5 years AEO 4 years were profitable.
In the past 5 years AEO always reported a positive cash flow from operatings.
1.2 Ratios
AEO's Return On Assets of 7.01% is fine compared to the rest of the industry. AEO outperforms 77.69% of its industry peers.
AEO has a Return On Equity of 14.64%. This is in the better half of the industry: AEO outperforms 73.55% of its industry peers.
With a decent Return On Invested Capital value of 11.14%, AEO is doing good in the industry, outperforming 76.86% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AEO is in line with the industry average of 12.03%.
The 3 year average ROIC (10.41%) for AEO is below the current ROIC(11.14%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.01% | ||
| ROE | 14.64% | ||
| ROIC | 11.14% |
ROA(3y)6.51%
ROA(5y)3.83%
ROE(3y)15.7%
ROE(5y)8.63%
ROIC(3y)10.41%
ROIC(5y)8.01%
1.3 Margins
AEO has a better Profit Margin (4.58%) than 77.69% of its industry peers.
AEO's Profit Margin has declined in the last couple of years.
AEO has a Operating Margin of 8.01%. This is amongst the best in the industry. AEO outperforms 80.99% of its industry peers.
AEO's Operating Margin has declined in the last couple of years.
AEO has a Gross Margin (39.18%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of AEO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.01% | ||
| PM (TTM) | 4.58% | ||
| GM | 39.18% |
OM growth 3Y212.88%
OM growth 5Y-3.77%
PM growth 3YN/A
PM growth 5Y-13.02%
GM growth 3Y8%
GM growth 5Y0.86%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AEO is creating some value.
The number of shares outstanding for AEO has been increased compared to 1 year ago.
Compared to 5 years ago, AEO has more shares outstanding
There is no outstanding debt for AEO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 4.05 indicates that AEO is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.05, AEO belongs to the best of the industry, outperforming 84.30% of the companies in the same industry.
AEO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.05 |
ROIC/WACC1.08
WACC10.29%
2.3 Liquidity
AEO has a Current Ratio of 1.57. This is a normal value and indicates that AEO is financially healthy and should not expect problems in meeting its short term obligations.
AEO has a Current ratio of 1.57. This is in the better half of the industry: AEO outperforms 65.29% of its industry peers.
AEO has a Quick Ratio of 1.57. This is a bad value and indicates that AEO is not financially healthy enough and could expect problems in meeting its short term obligations.
AEO has a Quick ratio of 0.74. This is in the better half of the industry: AEO outperforms 66.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
AEO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.24%, which is quite impressive.
AEO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.53% yearly.
Looking at the last year, AEO shows a small growth in Revenue. The Revenue has grown by 7.90% in the last year.
Measured over the past years, AEO shows a small growth in Revenue. The Revenue has been growing by 5.45% on average per year.
EPS 1Y (TTM)51.24%
EPS 3YN/A
EPS 5Y0.53%
EPS Q2Q%56%
Revenue 1Y (TTM)7.9%
Revenue growth 3Y11.86%
Revenue growth 5Y5.45%
Sales Q2Q%7.51%
3.2 Future
The Earnings Per Share is expected to grow by 10.66% on average over the next years. This is quite good.
Based on estimates for the next years, AEO will show a small growth in Revenue. The Revenue will grow by 3.01% on average per year.
EPS Next Y12.08%
EPS Next 2Y10.01%
EPS Next 3Y10.66%
EPS Next 5YN/A
Revenue Next Year1.51%
Revenue Next 2Y2.42%
Revenue Next 3Y3.01%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.12, which indicates a very decent valuation of AEO.
Based on the Price/Earnings ratio, AEO is valued cheaper than 90.91% of the companies in the same industry.
When comparing the Price/Earnings ratio of AEO to the average of the S&P500 Index (27.73), we can say AEO is valued rather cheaply.
AEO is valuated reasonably with a Price/Forward Earnings ratio of 9.07.
Based on the Price/Forward Earnings ratio, AEO is valued cheaper than 88.43% of the companies in the same industry.
AEO is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.12 | ||
| Fwd PE | 9.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AEO is valued cheaper than 95.04% of the companies in the same industry.
AEO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AEO is cheaper than 85.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.5 | ||
| EV/EBITDA | 4.54 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of AEO may justify a higher PE ratio.
PEG (NY)0.76
PEG (5Y)17.05
EPS Next 2Y10.01%
EPS Next 3Y10.66%
5. Dividend
5.1 Amount
AEO has a Yearly Dividend Yield of 3.06%.
Compared to an average industry Dividend Yield of 3.43, AEO pays a better dividend. On top of this AEO pays more dividend than 90.08% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, AEO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
5.2 History
The dividend of AEO decreases each year by -5.09%.
AEO has paid a dividend for at least 10 years, which is a reliable track record.
AEO has decreased its dividend recently.
Dividend Growth(5Y)-5.09%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
AEO pays out 37.51% of its income as dividend. This is a sustainable payout ratio.
DP37.51%
EPS Next 2Y10.01%
EPS Next 3Y10.66%
AMERICAN EAGLE OUTFITTERS
NYSE:AEO (12/20/2024, 8:04:00 PM)
After market: 16.8 +0.11 (+0.66%)16.69
+0.33 (+2.02%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners105.11%
Inst Owner Change-3.26%
Ins Owners6%
Ins Owner Change-1.04%
Market Cap3.21B
Analysts68
Price Target23.97 (43.62%)
Short Float %6.62%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
Dividend Growth(5Y)-5.09%
DP37.51%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.32%
Min EPS beat(2)0.71%
Max EPS beat(2)19.93%
EPS beat(4)4
Avg EPS beat(4)10.75%
Min EPS beat(4)0.71%
Max EPS beat(4)21.64%
EPS beat(8)8
Avg EPS beat(8)26.2%
EPS beat(12)9
Avg EPS beat(12)10.4%
EPS beat(16)13
Avg EPS beat(16)9.07%
Revenue beat(2)0
Avg Revenue beat(2)-1.99%
Min Revenue beat(2)-2.41%
Max Revenue beat(2)-1.56%
Revenue beat(4)1
Avg Revenue beat(4)-0.83%
Min Revenue beat(4)-2.41%
Max Revenue beat(4)0.86%
Revenue beat(8)4
Avg Revenue beat(8)-0.27%
Revenue beat(12)5
Avg Revenue beat(12)-0.85%
Revenue beat(16)6
Avg Revenue beat(16)-0.92%
PT rev (1m)0%
PT rev (3m)-6.42%
EPS NQ rev (1m)-0.94%
EPS NQ rev (3m)-5.77%
EPS NY rev (1m)-6%
EPS NY rev (3m)-6%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)-1.1%
Revenue NY rev (3m)-1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.12 | ||
| Fwd PE | 9.07 | ||
| P/S | 0.59 | ||
| P/FCF | 11.5 | ||
| P/OCF | 6.78 | ||
| P/B | 1.89 | ||
| P/tB | 2.25 | ||
| EV/EBITDA | 4.54 |
EPS(TTM)1.83
EY10.96%
EPS(NY)1.84
Fwd EY11.02%
FCF(TTM)1.45
FCFY8.69%
OCF(TTM)2.46
OCFY14.75%
SpS28.19
BVpS8.82
TBVpS7.42
PEG (NY)0.76
PEG (5Y)17.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.01% | ||
| ROE | 14.64% | ||
| ROCE | 15.8% | ||
| ROIC | 11.14% | ||
| ROICexc | 11.98% | ||
| ROICexgc | 13.39% | ||
| OM | 8.01% | ||
| PM (TTM) | 4.58% | ||
| GM | 39.18% | ||
| FCFM | 5.15% |
ROA(3y)6.51%
ROA(5y)3.83%
ROE(3y)15.7%
ROE(5y)8.63%
ROIC(3y)10.41%
ROIC(5y)8.01%
ROICexc(3y)13.8%
ROICexc(5y)10.4%
ROICexgc(3y)16.47%
ROICexgc(5y)12.05%
ROCE(3y)14.77%
ROCE(5y)11.36%
ROICexcg growth 3Y243.61%
ROICexcg growth 5Y-11.61%
ROICexc growth 3Y232.06%
ROICexc growth 5Y-13.01%
OM growth 3Y212.88%
OM growth 5Y-3.77%
PM growth 3YN/A
PM growth 5Y-13.02%
GM growth 3Y8%
GM growth 5Y0.86%
F-Score8
Asset Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 84.58% | ||
| Cap/Sales | 3.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.27% | ||
| Profit Quality | 112.36% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 4.05 |
F-Score8
WACC10.29%
ROIC/WACC1.08
Cap/Depr(3y)113.61%
Cap/Depr(5y)107.11%
Cap/Sales(3y)4.51%
Cap/Sales(5y)4.37%
Profit Quality(3y)121.04%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)51.24%
EPS 3YN/A
EPS 5Y0.53%
EPS Q2Q%56%
EPS Next Y12.08%
EPS Next 2Y10.01%
EPS Next 3Y10.66%
EPS Next 5YN/A
Revenue 1Y (TTM)7.9%
Revenue growth 3Y11.86%
Revenue growth 5Y5.45%
Sales Q2Q%7.51%
Revenue Next Year1.51%
Revenue Next 2Y2.42%
Revenue Next 3Y3.01%
Revenue Next 5YN/A
EBIT growth 1Y34.48%
EBIT growth 3Y249.99%
EBIT growth 5Y1.47%
EBIT Next Year88.35%
EBIT Next 3Y26.22%
EBIT Next 5YN/A
FCF growth 1Y240.75%
FCF growth 3Y74.83%
FCF growth 5Y8.06%
OCF growth 1Y518.24%
OCF growth 3Y42.07%
OCF growth 5Y4.93%