American Eagle Outfitters Inc

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AEO : NYSE : Services
$17.78 up 0.36 | 2.07%
Today's Range: 17.40 - 17.82
Avg. Daily Volume: 5,200,400
07/26/16 - 4:01 PM ET

Financial Analysis


AMERN EAGLE OUTFITTERS INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged 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 0.75 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 5.94% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)749.42699.52
EBITDA ($mil)97.4677.12
EBIT ($mil)58.6841.99
Net Income ($mil)40.4829.06


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)238.98326.91
Total Assets ($mil)1596.31672.76
Total Debt ($mil)0.00.0
Equity ($mil)1077.311145.41


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin39.1637.48
EBITDA Margin13.011.02
Operating Margin7.836.0
Sales Turnover2.241.99
Return on Assets14.386.3
Return on Equity20.859.95
Debt Q1 FY16 Q1 FY15
Current Ratio1.742.0
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)180.8195.06
Div / share0.130.13
EPS0.220.15
Book value / share5.965.87
Institutional Own % n/a n/a
Avg Daily Volume5208389.04957558.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 24.35 for the Specialty Retail industry and a significant discount compared to the S&P 500 average of 25.05. To use another comparison, its price-to-book ratio of 2.88 indicates valuation on par with the S&P 500 average of 2.81 and a significant discount versus the industry average of 13.96. 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 14.80 Peers 24.35   AEO 8.21 Peers 15.74

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 12.72 Peers 20.26   AEO 0.95 Peers 2.04

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 2.88 Peers 13.96   AEO 96.61 Peers -3.13

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 0.87 Peers 1.56   AEO 7.05 Peers 8.06

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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