American Eagle Stock Analysis, Valuation (NYSE:AEO)

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$27.9 $0.88 (3.26%) AEO stock closing price Aug 17, 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?

  • The Year Over Year (YoY) revenue growth for American Eagle was 8% in 2018-04.
  • The TTM operating margin was good at 8.21 for American Eagle.
  • Net margins stood at a healthy 5.7% (average) for American Eagle in the Trailing Twelve Months.
  • American Eagle's return on invested capital of 24.9 is good.
  • The LTM ROE of 18.7 for American Eagle is attractive.

Should you sell AEO stock?

  • Revenue growth of 2.3 has been weak over the last 5 years.
  • The company has an operating cash flow which is 0.7012 times the net income. This is not a healthy sign.
  • The company has a negative free cash flow 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.