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American Eagle Outfitters, Inc. (AEO) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

American Eagle Outfitters, Inc.

AEOMarket cap $3.00BPrice $17.9

Country🇺🇸United States

SectorConsumer

IndustrySpecialty Retail

Sells casual apparel and denim through American Eagle and Aerie, targeting teens and twentysomethings. Aerie turned body-positive lingerie into a billion-dollar bet, proving skinny-model marketing wasn't the only way to sell bras.

In Bastion Portfolios?

52W Return+21%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+4%4

Revenue Forecast

Rev CAGR (1y)+6%4

Rev CAGR (3y)+4%3

Rev CAGR (5y)+3%3

Earnings Forecast

EPS Growth Y+1+106%10

EPS Growth Y+2-16%2

EPS Growth Y+3+9%6

Quality

Margins

EBIT Margin6%3

Net Income Margin6%4

Free Cash Flow Margin6%4

Debt

Net Debt/EBITDA1.65

Efficiency

ROE20%8

ROA8%8

Earnings Stability44

GEAR+AVERAGE35

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)109

P/E Ratio (Forward 3y)99

P/BV1.77

EV Multiples

EV/EBITDA Fwd69

EV/EBIT Fwd99

Yield

Free Cash Flow Yield11.5%9

Dividend Yield2.8%7

Momentum

Short term

1 month return+3%9

3 month return+9%8

YTD return-31%1

Mid term

Price vs 52wHigh64%3

1 year return+19%7

Long term

3 year return+21%4

5 year return-18%3

Risk Shield

Price Risk

Beta1.23

Volatility53%3

Free Cash Flow

Free Cash Flow Margin6%4

Free Cash Flow Yield11.5%9

Quality

ROCE11%6

Earnings Stability44

Net Debt/EBITDA1.65

02Growth

Is it actually growing, and how fast?

AEOAmerican Eagle Outfitters

Revenue FY26$5.5B

GROWTH RATING↗

WEAK25 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+4%4

Revenue, next 1Y+6%4

Revenue, next 3Y, CAGR+4%3

Revenue, next 5Y, CAGR+3%3

EARNINGS FORECAST▾SCORE

EPS growth, FY27E+106%10

EPS growth, FY28E-16%2

EPS growth, FY29E+9%6

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

Revenue grew 4%/yr over the last 3 years and is set to keep growing around 4%/yr.

Earnings are set to grow in step with sales (EPS about 9%/yr vs revenue 4%/yr). One year dips: EPS falls 16% in year 2.

WEAKNESSES

Growth is the weak spot here, trailing 75% of companies worldwide.

Revenue is set to grow 4%/yr over the next 3 years, behind most of the market.3/10

Over five years revenue is set to grow 3%/yr, behind 70% of companies worldwide.3/10

BOTTOM LINE

Stalled Business

Growth is a weak point here. The one thing to watch: forward revenue growth trails the market.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

AVERAGE51 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+3%9

3-month return+9%8

YTD return-31%1

MID & LONG-TERM▾SCORE

% of 52-week high64%3

1-year return+19%7

3-year return+21%4

5-year return-18%3

MOMENTUM ASSESSMENT

STRENGTHS

Strong recent results. The stock is outperforming over the past month (+3%) and over three months (+9%).

WATCH

It's up 19% over the past year, but 36% below its 52-week high. That is right in line with the market.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (+21% over three years and -18% over five), behind 60% of the market.

The stock is underperforming so far this year (-31%).

BOTTOM LINE

Early Turnaround

A poor multi-year track record but a sharp recent rally. Momentum is turning up, yet the trend is young and unproven — it needs follow-through to confirm rather than fade. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on American Eagle Outfitters, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

AEOAmerican Eagle Outfitters

Revenue FY26$5.5B

GROWTH RATING↗

WEAK25 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+4%4

Revenue, next 1Y+6%4

Revenue, next 3Y, CAGR+4%3

Revenue, next 5Y, CAGR+3%3

EARNINGS FORECAST▾SCORE

EPS growth, FY27E+106%10

EPS growth, FY28E-16%2

EPS growth, FY29E+9%6

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

Revenue grew 4%/yr over the last 3 years and is set to keep growing around 4%/yr.

Earnings are set to grow in step with sales (EPS about 9%/yr vs revenue 4%/yr). One year dips: EPS falls 16% in year 2.

WEAKNESSES

Growth is the weak spot here, trailing 75% of companies worldwide.

Revenue is set to grow 4%/yr over the next 3 years, behind most of the market.3/10

Over five years revenue is set to grow 3%/yr, behind 70% of companies worldwide.3/10

BOTTOM LINE

Stalled Business

Growth is a weak point here. The one thing to watch: forward revenue growth trails the market.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

AVERAGE51 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+3%9

3-month return+9%8

YTD return-31%1

MID & LONG-TERM▾SCORE

% of 52-week high64%3

1-year return+19%7

3-year return+21%4

5-year return-18%3

MOMENTUM ASSESSMENT

STRENGTHS

Strong recent results. The stock is outperforming over the past month (+3%) and over three months (+9%).

WATCH

It's up 19% over the past year, but 36% below its 52-week high. That is right in line with the market.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (+21% over three years and -18% over five), behind 60% of the market.

The stock is underperforming so far this year (-31%).

BOTTOM LINE

Early Turnaround

04Value

Are you paying a fair price for it?

Stop guessing on American Eagle Outfitters, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community