American Eagle Outfitters Inc (AEO) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
American Eagle Outfitters Inc stock (AEO) is currently trading at $16.32. American Eagle Outfitters Inc PE ratio is 15.80. American Eagle Outfitters Inc PS ratio (Price-to-Sales) is 0.53. Analyst consensus price target for AEO is $23.89. WallStSmart rates AEO as Underperform.
- AEO PE ratio analysis and historical PE chart
- AEO PS ratio (Price-to-Sales) history and trend
- AEO intrinsic value — DCF, Graham Number, EPV models
- AEO stock price prediction 2025 2026 2027 2028 2029 2030
- AEO fair value vs current price
- AEO insider transactions and insider buying
- Is AEO undervalued or overvalued?
- American Eagle Outfitters Inc financial analysis — revenue, earnings, cash flow
- AEO Piotroski F-Score and Altman Z-Score
- AEO analyst price target and Smart Rating
American Eagle Outfitters Inc
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AEO Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · American Eagle Outfitters Inc (AEO)
AEO trades 222% above its Graham fair value of $7.41, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
American Eagle Outfitters Inc (AEO) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in price/sales, price/book, institutional own.. Concerns around peg ratio and eps growth. Fundamentals are solid but monitor weak areas for improvement.
American Eagle Outfitters Inc (AEO) Key Strengths (4)
Paying less than $1 for every $1 of annual revenue
97.23% of shares held by major funds and institutions
Trading at 1.72x book value, attractively priced
Mid-cap company balancing growth potential with stability
Supporting Valuation Data
American Eagle Outfitters Inc (AEO) Areas to Watch (6)
Earnings declining -7.00%, profits shrinking
Very expensive relative to growth, significant premium
Very thin margins, barely profitable
Thin operating margins with cost pressures present
Modest revenue growth at 9.70%
Moderate profitability with room for improvement
American Eagle Outfitters Inc (AEO) Detailed Analysis Report
Overall Assessment
This company scores 52/100 in our Smart Analysis, earning a C- grade. Out of 10 metrics analyzed, 4 register as strengths (avg 8.8/10) while 6 fall into concern territory (avg 2.8/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Price/Sales, Institutional Own., Price/Book. Valuation metrics including Price/Sales (0.53), Price/Book (1.72) suggest the stock is attractively priced.
The Bear Case
The primary concerns are EPS Growth, PEG Ratio, Profit Margin. Some valuation metrics including PEG Ratio (3.34) suggest expensive pricing. Growth concerns include Revenue Growth at 9.70%, EPS Growth at -7.00%, which may limit upside. Profitability pressure is visible in Return on Equity at 10.70%, Operating Margin at 10.20%, Profit Margin at 3.49%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 10.70% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 9.70% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Price/Sales, Institutional Own.) and negatives (EPS Growth, PEG Ratio). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
AEO Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
AEO's Price-to-Sales ratio of 0.53x trades 47% below its historical average of 1x (1th percentile). The current valuation is 85% below its historical high of 3.47x set in Nov 2006, and 6% above its historical low of 0.5x in Jan 2009. Over the past 12 months, the PS ratio has compressed from ~0.8x as trailing revenue scaled faster than the stock price.
WallStSmart Analysis Synopsis
Data-driven financial summary for American Eagle Outfitters Inc (AEO) · CONSUMER CYCLICAL › APPAREL RETAIL
The Big Picture
American Eagle Outfitters Inc is a mature, profitable business with steady cash generation. Revenue reached 5.5B with 10% growth year-over-year. Profit margins are strong at 349.0%, reflecting pricing power and operational efficiency.
Key Findings
ROE of 1070.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Generating 55M in free cash flow and 55M in operating cash flow. Earnings are translating into actual cash generation.
What to Watch Next
Dividend sustainability with a current yield of 286.0%. Watch payout ratio and free cash flow coverage.
Sector dynamics: monitor APPAREL RETAIL industry trends, competitive moves, and regulatory changes that could impact American Eagle Outfitters Inc.
Bottom Line
American Eagle Outfitters Inc is a well-established business delivering consistent profitability with 349.0% margins. The growth phase may be slowing, but strong cash generation and operational efficiency make it suitable for investors seeking reliability over excitement.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About American Eagle Outfitters Inc(AEO)
NYSE
CONSUMER CYCLICAL
APPAREL RETAIL
USA
American Eagle Outfitters, Inc. is a specialty retailer offering clothing, accessories, and personal care products under the American Eagle and Aerie brand names. The company is headquartered in Pittsburgh, Pennsylvania.