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American Eagle Outfitters
AEO : NYSE : Services
$16.47 up0.14 | 0.86%
Today's Range: 16.20 - 16.60
Avg. Daily Volume: 5,256,100
11/25/15 - 4:00 PM ET

Financial Analysis

AMERN EAGLE OUTFITTERS INC's gross profit margin for the second quarter of its fiscal year 2015 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. AMERN EAGLE OUTFITTERS INC has weak liquidity. Currently, the Quick Ratio is 0.77 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.80% 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 FY15 Q2 FY14
Net Sales ($mil)797.43710.6
EBITDA ($mil)89.2547.47
EBIT ($mil)53.1412.05
Net Income ($mil)33.265.81

Balance Sheet Q2 FY15 Q2 FY14
Cash & Equiv. ($mil)327.29262.63
Total Assets ($mil)1760.211680.06
Total Debt ($mil)0.00.0
Equity ($mil)1165.681133.85

Profitability Q2 FY15 Q2 FY14
Gross Profit Margin35.7433.43
EBITDA Margin11.196.68
Operating Margin6.661.7
Sales Turnover1.941.94
Return on Assets7.552.68
Return on Equity12.133.97
Debt Q2 FY15 Q2 FY14
Current Ratio1.881.89
Interest Expense0.00.0
Interest Coverage0.00.0

Share Data Q2 FY15 Q2 FY14
Shares outstanding (mil)195.43194.43
Div / share0.130.13
Book value / share5.965.83
Institutional Own % n/a n/a
Avg Daily Volume5541578.04730702.0


BUY. AMERN EAGLE OUTFITTERS INC's P/E ratio indicates a discount compared to an average of 26.12 for the Specialty Retail industry and a value on par with the S&P 500 average of 21.93. To use another comparison, its price-to-book ratio of 2.57 indicates valuation on par with the S&P 500 average of 2.77 and a significant discount versus the industry average of 10.85. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, AMERN EAGLE OUTFITTERS INC proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AEO 21.03 Peers 26.12   AEO 8.36 Peers 16.47

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

AEO is trading at a discount 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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
AEO 13.23 Peers 21.04   AEO 0.16 Peers 1.97

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

AEO is trading at a significant discount 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 significant discount to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AEO 2.57 Peers 10.85   AEO 217.39 Peers 72.16

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.


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

AEO is expected to have an earnings growth rate that significantly exceeds its peers.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AEO 0.88 Peers 1.57   AEO 5.14 Peers 6.49

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 trails its peers on the basis of sales growth



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