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Company Overview American Eagle Outfitters, Inc. (the "Company," "AEO," "we," "us," and "our") is a leading global specialty retailer with a portfolio of beloved apparel brands. We operate and license nearly 1,500 retail stores worldwide and are online at www.ae.com and www.aerie.com in the U.S. and internationally.
$15.80
$2.12 (-11.83%)
Price from 6 days ago
Operating margin is thin at 4.08%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 4.1%, steady but not accelerating. Margins contracted 3.9pp, which offsets some of the top-line progress.
Free cash flow declined 23% versus the prior year, cash generation momentum has weakened. ROIC dropped from 10.19% to 4.86%, capital efficiency is deteriorating.
14.5x earnings, 14.2x FCF. The multiple is below average. Either the market is pricing in deterioration you should investigate, or there's genuine value here.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$5.55B
▲ +4.1% YoY
Net Income (TTM)
$192M
▼ -41.7% YoY
Op. Margin
4.08%
▼ -3.9pp YoY
ROIC
4.86%
▼ -5.3pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$195M
▼ -23.2% YoY
Op. Cash Flow (TTM)
$456M
▼ -4.3% YoY
Net Debt
$1.50B
Cash & Equiv.
$239M
5Y CAGR: +8.1%
5Y CAGR: +21.3%
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