American Eagle Outfitters Inc.

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AEO : NYSE : Retail Trade
$19.17 | %
Today's Range: 18.9 - 19.23
Avg. Daily Volume: 4345100.0
02/23/18 - 4:02 PM ET

Financial Analysis


AMERN EAGLE OUTFITTERS INC's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. AMERN EAGLE OUTFITTERS INC has weak liquidity. Currently, the Quick Ratio is 0.61 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 remained unchanged 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 FY17 Q3 FY16
Net Sales ($mil)960.43940.61
EBITDA ($mil)157.77157.9
EBIT ($mil)114.62118.27
Net Income ($mil)63.7375.76


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)257.53291.67
Total Assets ($mil)1801.781822.54
Total Debt ($mil)0.00.0
Equity ($mil)1163.21171.96


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin39.0440.17
EBITDA Margin16.4216.78
Operating Margin11.9312.57
Sales Turnover2.031.99
Return on Assets9.1413.14
Return on Equity14.1720.43
Debt Q3 FY17 Q3 FY16
Current Ratio1.681.66
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)177.08181.86
Div / share0.130.13
EPS0.360.41
Book value / share6.576.44
Institutional Own % n/a n/a
Avg Daily Volume4597356.04372122.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 24.16 for the Specialty Retail industry and a discount compared to the S&P 500 average of 25.51. To use another comparison, its price-to-book ratio of 2.77 indicates a discount versus the S&P 500 average of 3.26 and a significant discount versus the industry average of 38.06. 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 19.76 Peers 24.16   AEO 9.29 Peers 15.50

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AEO 13.62 Peers 21.54   AEO NA Peers 1.44

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.

 

Neutral. 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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AEO 2.77 Peers 38.06   AEO -28.13 Peers 12.42

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 0.88 Peers 1.65   AEO 1.26 Peers 5.19

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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