# American Eagle Outfitters Inc. (AEO) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Consumer Cyclical / Textiles, Apparel & Luxury Goods. Price $17.39, market value $2.9 billion.

## Valuation
- **P/E (trailing): 10.9×** (5-yr avg 16.9×, 3-yr avg 17.5×). American Eagle Outfitters Inc. trades at 10.9× trailing earnings, well below its own five-year average of 16.9×: cheap by its own standards. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 8.9×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 0.5×**. Each dollar of revenue is priced at 0.5×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.8×**. The shares trade at 1.8× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 4.8×**. Enterprise value is 4.8× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 6.3%** (5-yr avg 6.1%). Free cash flow equals 6.3% of the market value, in line with its five-year average of 6.1%. Above 5% is generally attractive.
- **Earnings yield: 9.1%**. The inverse of the P/E: 9.1% of the price is earned each year.

## Profitability
- **Gross margin: 38.2%**. American Eagle Outfitters Inc. keeps 38.2% of revenue after the direct cost of what it sells.
- **Operating margin: 6.0%**. 6.0% of revenue is left after running the business.
- **Net margin: 3.5%**. 3.5% of each dollar of sales reaches the bottom line.
- **Return on equity: 11.3%**. 11.3% on shareholders' equity is solid.
- **Return on invested capital: 18.5%**. Return on all capital, debt included, is 18.5%: comfortably above what that capital costs.
- **Return on assets: 7.0%**. Each dollar of assets produces 7.0% of profit.

## Growth
- **Revenue growth (1 yr): 4.1%** (3-yr 3.6%/yr, 5-yr 8.1%/yr). Revenue grew 4.1% over the last year, against 8.1% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -35.1%** (3-yr 19.4%/yr). Earnings per share fell 35.1%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 10.2%/yr**. Free cash flow has compounded at 10.2% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.00**. Debt is 0.00 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. American Eagle Outfitters Inc. holds more cash than debt.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.88%** ($0.50 per share, trailing). American Eagle Outfitters Inc. yields 2.88%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 44%** (46% of free cash flow). 44% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 2**. 2 straight years of increases.
- **Dividend growth (5 yr): 3.9%/yr** (1-yr 0.0%). The dividend has grown 3.9% a year over five years.

## Analyst view
- **Analyst consensus: hold** (10 analysts). 10 analysts cover American Eagle Outfitters Inc.; the consensus is hold, with an average price target of $19.70 (+13% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -4.9%** (YTD -32.8%, 3-mo 6.6%). The shares are down 4.9% over twelve months including dividends.
- **From 52-week high: -38.9%** (23.7% above the low). Trading 39% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 55**. An RSI of 55 is neutral.
- **Beta (1 yr): 1.50** (volatility 52%). Beta of 1.50 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=AEO · Page: https://foliofundamentals.com/stocks/aeo

Not investment advice.