American Eagle Stock Analysis, Valuation (NYSE:AEO)

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$23.84 $0.65 (2.65%) AEO stock closing price Jul 20, 2018 (Closing)

Watch the robo advisor video of American Eagle stock analysis on Amigobulls. Our AEO analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

American Eagle Outfitters Stock Rating 3.5/5

Amigobulls AEO stock analysis takes into account various financial ratios like relative valuation, American Eagle revenue, growth and return on equity based on latest quarter 2019 Q1 financial statements. We also check American Eagle dividend performance. American Eagle valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. American Eagle stock rating is our opinion about the business fundamentals of the company.

Should you buy AEO stock?

  • American Eagle's revenue growth came in at 8% in 2018-04.
  • American Eagle's average operating margin of 8.21 was exceptional.
  • LTM Net margins were good at 5.7% for American Eagle.
  • American Eagle generates a high return on invested capital of 24.9.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for American Eagle at 18.7.

Should you sell AEO stock?

  • Over the last 5 years, the company registered a poor revenue growth of 2.3.
  • Cash flow from operations is 0.7012 times net income which is a negative signal.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -2.3.

Comments on this video and American Eagle stock

Amigobulls American Eagle stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of AEO stock. The fundamentals of a company are vital to identify long-term investment opportunities.

American Eagle revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Investors could make use of AEO technical analysis to check whether the fundamental story is reflected in the market sentiment.