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American Eagle Outfitters
AEO : NYSE : Services
$13.47 -0.16 | -1.17%
Today's Range: 13.46 - 13.86
Avg. Daily Volume: 5,841,000
10/22/14 - 4:00 PM ET

Financial Analysis


AMERN EAGLE OUTFITTERS INC's gross profit margin for the second quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. AMERN EAGLE OUTFITTERS INC has weak liquidity. Currently, the Quick Ratio is 0.70 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 5.80% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY14 Q2 FY13
Net Sales ($mil)710.6727.31
EBITDA ($mil)47.4759.16
EBIT ($mil)12.0529.43
Net Income ($mil)5.8119.59


Balance Sheet Q2 FY14 Q2 FY13
Cash & Equiv. ($mil)262.63404.87
Total Assets ($mil)1680.061780.09
Total Debt ($mil)0.00.0
Equity ($mil)1133.851203.67


Profitability Q2 FY14 Q2 FY13
Gross Profit Margin33.4333.75
EBITDA Margin6.688.13
Operating Margin1.74.05
Sales Turnover1.941.93
Return on Assets2.6812.41
Return on Equity3.9718.67
Debt Q2 FY14 Q2 FY13
Current Ratio1.892.31
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY14 Q2 FY13
Shares outstanding (mil)194.43192.7
Div / share0.130.13
EPS0.030.1
Book value / share5.836.25
Institutional Own % n/a n/a
Avg Daily Volume5557705.04554862.0

Valuation


HOLD. AMERN EAGLE OUTFITTERS INC's P/E ratio indicates a significant premium compared to an average of 21.77 for the Specialty Retail industry and a significant premium compared to the S&P 500 average of 18.06. To use another comparison, its price-to-book ratio of 2.44 indicates valuation on par with the S&P 500 average of 2.49 and a significant discount versus the industry average of 6.42. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AEO 61.91 Peers 21.77   AEO 10.23 Peers 17.41

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

AEO is trading at a significant premium to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

AEO is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AEO 18.86 Peers 18.71   AEO 1.72 Peers 1.95

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

AEO is trading at a significant premium to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

AEO trades at a discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AEO 2.44 Peers 6.42   AEO -79.47 Peers 19.81

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

AEO is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, AEO is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AEO 0.85 Peers 1.30   AEO -5.20 Peers 6.42

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

AEO is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

AEO significantly trails its peers on the basis of sales growth

 

 

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