American Eagle Stock Analysis, Valuation (NYSE:AEO)

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$20.68 $0.61 (2.87%) AEO stock closing price Apr 20, 2018 (Closing)
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American Eagle
Updated on : Apr 20, 2018
previous close
AEO 20.7 (0%)
S&P 500 2670.1 (0%)
Closing Price On: Apr 20, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Retail-Apparel-Shoe
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2018-Q4
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
8%
Sector Average:
5.5%
5 Quarter Net Profit
Net Margins
2018-Q4
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$206.3M
Net Income:
$94M
Dividend Yield
AEO dividend yield:
2.51%
PROS      CONS
Recent Growth
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
AEO PS :
1
Industry PS :
0.7
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
23.7%
Return on Equity:
17.4%
Free Cash Flow Margin:
14%
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American Eagle Stock Analysis

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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 3.7/5

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 2018 Q4 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 12% in 2018 Q4.
  • The TTM operating margin was good at 8% for American Eagle.
  • Net margins stood at a healthy 5.4% (average) for American Eagle in the Trailing Twelve Months.
  • The company has an operating cash flow which is 2.2 times the net income.
  • AEO stock is trading at an earnings multiple of 17.8 which is better than the industry average of 19.9.
  • American Eagle has an attractive ROIC (Return on Invested Capital) of 23.7%
  • The LTM ROE of 17.4% for American Eagle is attractive.
  • The company has a healthy free cash flow margin of 14%.

Should you sell AEO stock?

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.