American Eagle Outfitters, Inc. (AEO) — Fundamental Analysis & Key Financial Ratios

Kaplio overview: American Eagle Outfitters, Inc.

Market cap $3B · 52 weeks $15 – $28 (30 % below the high) · P/E 9.9× · 2027 expected P/E 10.1× · Dividend 2.6 % · Next earnings December 1, 2026 · expected EPS $0.49 · Closing price, Oct 28 · accounts published Sep 9.

• Valuation: P/E 9.9× (cheap).
• Business: 5-year ROIC 9.3 % (weak).
• Balance sheet: Net debt/EBITDA 3.2× (watch).
• Earnings: 5 of 8 (uneven).

What would it be worth at its usual multiples?

At the decade median (13.0×) $25 (+31 %); at its sector median (17.9×) $35 (+80 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.

What matters in consumer cyclicals: 3 of 8 pass

• 5y avg ROIC 9.3 %, fails.
• P/E read in reverse (cyclicals) 9.9×, fails.
• EV/Sales vs history 1.0×, fails.
• 5y avg operating margin 7.8 %, borderline.
• Net debt / EBITDA 3.2×, borderline.
• Inventory turnover 5.2×, passes.
• Current Ratio 1.59, passes, near the threshold.
• Altman Z-Score 3.7, passes.

Against its peers (reference peers) — American Eagle Outfitters, Inc.: P/E 9.9×; EV/EBITDA 7.2×; ROIC 10.7 %; $3.3B. The Buckle, Inc. (P/E 10.5×; EV/EBITDA 8.3×; ROIC 22.2 %; $2.3B), Abercrombie & Fitch Co. (P/E 13.8×; EV/EBITDA 8.3×; ROIC 19.0 %; $6.8B), Victoria's Secret & Co. (P/E 40.9×; EV/EBITDA 13.5×; ROIC 11.6 %; $7.3B).

Expensive or cheap against its last ten years?

P/E at each close: today 9.9× · median 13.0× · minimum 4.5× · maximum 28.9× · cheap below 10.2× · expensive above 19.5×. It has been cheaper than today only 26% of the time over its last ten years.

Dividend

tight (only raised recently) · Yield 2.6 % ($0.50 per share in 2025) · 5-year growth +29 % a year · Free cash flow coverage 3.2× · With $1,000 invested today you'd collect $25.70 a year ($2.14 a month).