American Eagle (AEO) AI Stock Analysis

• Market Cap: $1.77B
• Dividend Yield: 5.2%
• Average Volume (3M): 8.21M
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.98
• Revenue Growth: -0.95%
• EPS Growth: -10.51%
• Country: US
• Employees: 9,000
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Apparel - Retail
• EPS (TTM): -0.29
• Shares Outstanding: 173,268,230
• 10 Day Avg. Volume: 7,579,455
• 30 Day Avg. Volume: 8,211,416
• PEG Ratio: -0.22
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.98
• Enterprise Value/Market Cap: 1.91
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 1.73
• Enterprise Value/Ebitda: 1.48
• 1Y Price Target: $11.30
• Price Target Upside: 10.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 62 Neutral
• Price Target: $10.50 ▲(3.04%Upside)

American Eagle faces bearish technical signals and near-term earnings challenges that weigh on its stock score. However, strong valuation metrics and operational efficiency provide a buffer, making it an intriguing, albeit risky, opportunity in the apparel retail space.

Positive Factors

Growth and Profitability Expectations

Management cited expectations for sequentially improved growth, profitability, and cash flows as the year progresses with fresh inventory hitting shelves.

Inventory Management

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

Negative Factors

Cost Impact

Tariffs are expected to negatively impact the cost of goods sold by $40 million in the fiscal year, affecting profitability.

Guidance

AEO withdrew its fiscal year guidance, indicating uncertainty about future performance.

Investor Sentiment

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 that offers high-quality, on-trend clothing, accessories, and personal care products at affordable prices. Established in 1977 and headquartered in Pittsburgh, Pennsylvania, the company operates under two primary brands: American Eagle and Aerie. American Eagle focuses on casual and versatile apparel for young men and women, while Aerie specializes in intimate wear, activewear, and swimwear catering to a female demographic. AEO is known for its commitment to inclusivity, diversity, and sustainability in its products and marketing efforts.

How the Company Makes Money

American Eagle makes money primarily through the sale of its apparel, accessories, and personal care products under the American Eagle and Aerie brands. Its revenue model is predominantly based on retail sales from its network of physical stores and a growing e-commerce platform. The company also generates income through its loyalty programs and credit card partnerships, which encourage repeat purchases and enhance customer engagement. Additionally, AEO benefits from strategic partnerships and collaborations that expand its product offerings and market reach. Key factors contributing to its earnings include brand strength, product innovation, a strong digital presence, and effective supply chain management.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Neutral
• Last Price: 10.19
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 10.19 is above the 20-day moving average (MA) of 9.93, below the 50-day MA of 10.70, and below the 200-day MA of 14.83, indicating a neutral trend. The MACD of -0.28 indicates Negative momentum. The RSI at 50.35 is Neutral, neither overbought nor oversold. The STOCH value of 59.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AEO.

American Eagle Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RVLV	75 Outperform	$1.52B	30.29	11.97%	―	9.09%	106.50%
FDP	72 Outperform	$1.54B	10.47	7.51%	3.70%	-0.64%	―
WWW	68 Neutral	$1.55B	21.52	25.29%	2.21%	-13.05%	―
AEO	62 Neutral	$1.77B	10.43	12.19%	5.20%	-0.95%	-10.51%
Sector *	62 Neutral	$16.65B	11.16	-7.38%	3.11%	1.59%	-23.30%
VSCO	61 Neutral	$1.54B	9.30	31.35%	―	1.45%	59.09%
FL	55 Neutral	$2.38B	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.