American Eagle Stock Analysis, Valuation (NYSE:AEO)

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$22.77 $0.33 (1.43%) AEO stock closing price May 21, 2018 (Closing)
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American Eagle
Updated on : May 18, 2018
previous close
AEO 23.1 (0%)
S&P 500 2713 (0%)
Closing Price On: May 18, 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
Long Term Growth
5 Year CAGR:
1.7%
Operating Profit
Operating Margin:
8%
Sector Average:
5.4%
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:
2.25%
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
Cash Flow
ROIC
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
AEO PS :
1.1
Industry PS :
0.8
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 company saw a significant growth in revenue with a 5 year CAGR of 1.7%.
  • American Eagle had a healthy average operating margin of 8% over the last 4 quarters.
  • 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.
  • American Eagle's return on invested capital of 23.7% is good.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for American Eagle at 17.4%.
  • The company has a good Free Cash Flow (FCF) 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.