American Eagle (AEO) AI Stock Analysis

• Market Cap: $2.17B
• Dividend Yield: 3.96%
• Average Volume (3M): 13.87M
• Price to Earnings (P/E): 12.8
• Beta (1Y): 1.16
• Revenue Growth: -0.95%
• EPS Growth: -10.51%
• Country: US
• Employees: 9,000
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Apparel - Retail
• EPS (TTM): -0.29
• Shares Outstanding: 173,268,230
• 10 Day Avg. Volume: 20,779,885
• 30 Day Avg. Volume: 13,872,011
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.69
• Enterprise Value/Revenue: 0.70
• Enterprise Value/Gross Profit: 1.89
• Enterprise Value/Ebitda: 7.09
• 1Y Price Target: $11.55
• Price Target Upside: -8.62% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 72 Outperform
• Price Target: $13.50 ▲(6.80% Upside)

American Eagle's overall score reflects solid financial performance and attractive valuation, tempered by near-term challenges highlighted in the earnings call. Positive technical indicators support a cautiously optimistic outlook, but the company must navigate profitability pressures and leverage concerns.

Positive Factors

Inventory Management

Management expects inventory to be more aligned with sales trends following the write-down, potentially improving future sales.

Negative Factors

Guidance

The guidance for 2025 remains withdrawn due to inventory mis-steps and macroeconomic uncertainty.

Market Position

Investor sentiment remains very negative with shares trading below consensus estimates, indicating concerns over AEO's current market position.

Profitability

Profitability was well below initial consensus expectations due to product mis-execution, leading to a significant inventory write-down.

American Eagle Business Overview & Revenue Model

Company Description

American Eagle Outfitters, Inc. (AEO) is a leading global specialty retailer headquartered in Pittsburgh, Pennsylvania. The company operates primarily in the apparel sector, focusing on casual and trendy clothing, accessories, and personal care products for young adults and teenagers. AEO's core brands include American Eagle, which offers a range of jeans, tops, and swimwear, and Aerie, a popular lingerie and activewear line. With a strong presence both in physical retail stores and online, AEO caters to a youthful demographic through its stylish offerings and inclusive marketing strategies.

How the Company Makes Money

American Eagle generates revenue primarily through the sale of apparel and accessories in its retail stores and e-commerce platforms. The company operates on a direct-to-consumer model, allowing it to maintain control over its branding and customer experience. Key revenue streams include sales from its flagship American Eagle brand, the Aerie brand, and collaborations with external partners for exclusive merchandise. Additionally, AEO benefits from seasonal promotions and loyalty programs that encourage repeat purchases. The company also leverages its online presence to reach a broader audience, enhancing its overall sales potential.

American Eagle Financial Statement Overview

Summary

American Eagle's financials reflect solid operational margins and effective cash flow management, despite facing profitability pressures and rising leverage. The balance sheet remains stable, but attention to debt levels is necessary.

Income Statement

American Eagle's TTM (Trailing-Twelve-Months) gross profit margin stands at 36.9%, indicating a solid ability to manage production costs. However, the net profit margin of 3.7% reflects pressure on bottom-line profitability. Revenue growth over the past year has been modest, with a slight decline from the previous year's figures. Despite these challenges, the EBIT and EBITDA margins show a healthy operational efficiency.

Balance Sheet

The company's balance sheet reveals a debt-to-equity ratio of 1.2, suggesting moderate leverage. With a return on equity (ROE) of 13.3% in the TTM, American Eagle is generating respectable returns for shareholders. The equity ratio of 39.1% indicates a stable capital structure, although the increasing debt levels could pose future risks.

Cash Flow

American Eagle demonstrates strong cash flow management with a TTM operating cash flow to net income ratio of 2.34, highlighting superior cash generation relative to net income. The free cash flow to net income ratio stands at 1.08, indicating effective capital expenditure control. However, free cash flow growth has shown volatility, which may affect financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.27B	5.33B	5.26B	4.99B	5.01B	3.76B
Gross Profit	1.95B	2.09B	2.02B	1.75B	1.99B	1.15B
EBITDA	517.90M	665.39M	477.02M	404.98M	756.43M	-104.73M
Net Income	196.73M	329.38M	170.04M	125.14M	419.63M	-209.27M
Balance Sheet
Total Assets	3.77B	3.83B	3.56B	3.42B	3.79B	3.43B
Cash, Cash Equivalents and Short-Term Investments	87.85M	358.96M	454.09M	170.21M	434.77M	850.48M
Total Debt	1.77B	1.45B	1.19B	1.37B	1.81B	1.80B
Total Liabilities	2.29B	2.06B	1.82B	1.82B	2.36B	2.35B
Stockholders Equity	1.47B	1.77B	1.74B	1.60B	1.42B	1.09B
Cash Flow
Free Cash Flow	212.30M	254.26M	406.27M	145.92M	69.82M	74.52M
Operating Cash Flow	460.24M	476.80M	580.71M	406.30M	303.67M	202.50M
Investing Cash Flow	-288.56M	-217.51M	-287.43M	-261.38M	-594.60M	-73.94M
Financing Cash Flow	-381.83M	-301.91M	-109.47M	-407.89M	-125.20M	359.91M

American Eagle Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AEO, the sentiment is Positive. The current price of 12.64 is above the 20-day moving average (MA) of 11.73, above the 50-day MA of 10.61, and below the 200-day MA of 13.28, indicating a neutral trend. The MACD of 0.68 indicates Negative momentum. The RSI at 58.10 is Neutral, neither overbought nor oversold. The STOCH value of 77.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AEO.

American Eagle Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ANF	80 Outperform	$4.84B	9.97	46.98%	―	12.54%	25.47%
BKE	79 Outperform	$2.87B	14.44	44.55%	6.96%	-1.08%	-8.20%
URBN	79 Outperform	$7.01B	16.66	19.55%	―	8.38%	52.18%
AEO	72 Outperform	$2.17B	12.83	12.19%	3.96%	-0.95%	-10.51%
VSCO	69 Neutral	$1.77B	11.36	31.35%	―	1.45%	59.09%
Sector *	67 Neutral	¥277.37B	14.70	6.81%	2.50%	5.06%	-23.65%
FL	50 Neutral	$2.45B	194.63	-12.85%	―	-2.62%	0.93%

American Eagle Corporate Events

American Eagle Stockholders Approve Key Proposals in Meeting

On June 25, 2025, American Eagle Outfitters, Inc. conducted its 2025 Annual Meeting of Stockholders via remote communication. During the meeting, stockholders voted on three key proposals: the election of two Class III directors, the ratification of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending January 31, 2026, and the approval of the fiscal 2024 compensation of named executive officers. All proposals were approved, with Deborah A. Henretta and Cary D. McMillan elected as Class III directors until 2028, Ernst & Young LLP’s appointment ratified, and the executive compensation approved on an advisory basis.

The most recent analyst rating on (AEO) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on American Eagle stock, see the AEO Stock Forecast page.