American Eagle Outfitters Inc

Find Ratings Reports
AEO : NYSE : Services
$13.85 0.0 | 0.0%
Today's Range: 13.76 - 13.94
Avg. Daily Volume: 4617800.0
03/24/17 - 4:01 PM ET

Financial Analysis


AMERN EAGLE OUTFITTERS INC's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. AMERN EAGLE OUTFITTERS INC has weak liquidity. Currently, the Quick Ratio is 0.94 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 14.57% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)1097.251105.83
EBITDA ($mil)146.44145.51
EBIT ($mil)107.04106.21
Net Income ($mil)54.6281.71


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)378.61260.07
Total Assets ($mil)1782.661612.25
Total Debt ($mil)0.00.0
Equity ($mil)1204.571051.38


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin35.4135.08
EBITDA Margin13.3413.15
Operating Margin9.769.6
Sales Turnover2.022.18
Return on Assets11.9113.53
Return on Equity17.6320.28
Debt Q4 FY16 Q4 FY15
Current Ratio1.831.56
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)181.86180.14
Div / share0.130.13
EPS0.30.42
Book value / share6.625.84
Institutional Own % n/a n/a
Avg Daily Volume4593736.05470866.0

Valuation


BUY. AMERN EAGLE OUTFITTERS INC's P/E ratio indicates a significant discount compared to an average of 23.27 for the Specialty Retail industry and a significant discount compared to the S&P 500 average of 26.73. To use another comparison, its price-to-book ratio of 2.19 indicates a discount versus the S&P 500 average of 2.98 and a significant discount versus the industry average of 19.00. 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 12.50 Peers 23.27   AEO NA Peers 15.14

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.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AEO 11.15 Peers 19.15   AEO 1.61 Peers 2.00

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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AEO 2.19 Peers 19.00   AEO 6.42 Peers 41.99

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 0.73 Peers 1.54   AEO 2.49 Peers 7.73

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

 

 

Latest Stock Upgrades/Downgrades