American Eagle Outfitters Inc

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AEO : NYSE : Services
$18.54 -0.03 | -0.16%
Today's Range: 18.43 - 18.75
Avg. Daily Volume: 4,856,300
08/31/16 - 4:02 PM ET

Financial Analysis


AMERN EAGLE OUTFITTERS INC's gross profit margin for the second 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 0.63 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 5.60% 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 FY16 Q2 FY15
Net Sales ($mil)822.59797.43
EBITDA ($mil)107.5689.25
EBIT ($mil)68.6653.14
Net Income ($mil)41.5933.26


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)247.93327.29
Total Assets ($mil)1693.191760.21
Total Debt ($mil)0.00.0
Equity ($mil)1100.41165.68


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin37.3335.74
EBITDA Margin13.0711.19
Operating Margin8.356.66
Sales Turnover2.121.94
Return on Assets14.047.55
Return on Equity21.1712.13
Debt Q2 FY16 Q2 FY15
Current Ratio1.661.88
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)180.91195.43
Div / share0.130.13
EPS0.230.17
Book value / share6.085.96
Institutional Own % n/a n/a
Avg Daily Volume4761056.05561364.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 22.48 for the Specialty Retail industry and a discount compared to the S&P 500 average of 25.18. To use another comparison, its price-to-book ratio of 3.05 indicates valuation on par with the S&P 500 average of 2.82 and a significant discount versus the industry average of 12.94. 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 15.22 Peers 22.48   AEO 8.53 Peers 15.21

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 13.22 Peers 20.14   AEO 0.74 Peers 1.93

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 3.05 Peers 12.94   AEO 67.12 Peers -11.31

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 0.93 Peers 1.53   AEO 5.07 Peers 7.94

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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