American Eagle Outfitters Inc. Common Stock (AEO)

FairStock Score: 51/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am wary of retailers, because fashion is perishable and competition is relentless. American Eagle Outfitters has real brands—American Eagle, Aerie, OFFLINE—but the moat is not wide; apparel retail has few switching costs. In the latest filed quarter, fiscal Q2 2026 ended 2026-08-01, revenue was $1.4B and net income $134.1M, versus $1.3B and $77.6M in fiscal Q2 2025. That is a sharp rebound. The longer record is uneven: FY2025 net income was $192.0M on $5.5B revenue, down from $329.4M in FY2024; FY2023 was $170.0M. FairStock calls it a SLOW GROWER — Shrinking, with profit down 17.8% a year over four years and revenue up only 2.6%. The balance sheet has debt: D/E 1.09 is substantial, and Altman Z 2.21 is in the grey zone. Still, free cash flow is $343.5M, an 11.5% FCF yield on the $3.0B market cap. At the 2026-10-13 close of $17.78, FairStock's P/E is 9.16, P/B 1.69, EV/EBITDA 6.31, and Graham Number $21.43—about a 17% margin of safety. ROE is 20%, though ROCE is only 5.31%, and Piotroski is 8/9. A cheap price can compensate for a mediocre business, but only if management stabilizes profits and does not let debt or fashion risk erode the cash flow. I would want proof that the latest quarter is a trend, not a bounce.

In plain English: American Eagle Outfitters sells jeans, clothing, accessories, and intimates through American Eagle, Aerie, and other brands. The business brings in billions in sales and produces solid cash flow, but profits have been uneven and have shrunk over the past several years. At the recent $17.78 close, the stock looks inexpensive compared with its earnings and cash flow, though the company carries debt and faces a tough retail market.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-08-01) · fiscal Q1 2026 10-Q (period ended 2026-05-02) · fiscal Q3 2025 10-Q (period ended 2025-11-01) · fiscal Q2 2025 10-Q (period ended 2025-08-02) · FY2025 10-K (period ended 2026-01-31) · FY2024 10-K (period ended 2025-02-01) · FY2023 10-K (period ended 2024-02-03)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer