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American Eagle Outfitters
AEO : NYSE : Services
$13.65 | %
Today's Range: 13.23 - 13.72
Avg. Daily Volume: 6,198,800
02/12/16 - 4:00 PM ET

Financial Analysis


AMERN EAGLE OUTFITTERS INC's gross profit margin for the third 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 0.74 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.

During the same period, stockholders' equity ("net worth") has increased by 7.94% 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 Q3 FY15 Q3 FY14
Net Sales ($mil)919.07854.29
EBITDA ($mil)146.7377.36
EBIT ($mil)109.1140.84
Net Income ($mil)74.119.03


Balance Sheet Q3 FY15 Q3 FY14
Cash & Equiv. ($mil)363.12280.45
Total Assets ($mil)1887.841772.07
Total Debt ($mil)0.00.0
Equity ($mil)1209.271120.25


Profitability Q3 FY15 Q3 FY14
Gross Profit Margin39.9936.93
EBITDA Margin15.969.05
Operating Margin11.874.78
Sales Turnover1.851.84
Return on Assets10.491.64
Return on Equity16.672.6
Debt Q3 FY15 Q3 FY14
Current Ratio1.821.7
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY15 Q3 FY14
Shares outstanding (mil)194.44194.49
Div / share0.130.13
EPS0.350.05
Book value / share6.225.76
Institutional Own % n/a n/a
Avg Daily Volume6103769.05867534.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 23.57 for the Specialty Retail industry and a discount compared to the S&P 500 average of 21.13. To use another comparison, its price-to-book ratio of 2.25 indicates valuation on par with the S&P 500 average of 2.51 and a significant discount versus the industry average of 10.56. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AEO 13.59 Peers 23.57   AEO 7.55 Peers 15.04

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

AEO is trading at a significant 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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AEO 12.07 Peers 20.11   AEO 0.10 Peers 2.07

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AEO 2.25 Peers 10.56   AEO 586.66 Peers 23.39

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AEO 0.78 Peers 1.52   AEO 7.22 Peers 5.81

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

AEO has a sales growth rate that exceeds its peers.

 

 

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