American Eagle Outfitters, Inc. cash flow to debt ratio of 26.32% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

American Eagle Outfitters, Inc.'s free cash flow has decreased 23.15% from $254.26M last year to $195.39M, signaling decreasing performance

American Eagle Outfitters, Inc.'s debt to equity ratio is 1.14, which means that the company's assets are unhealthy financed, signaling financial risk.

American Eagle Outfitters, Inc.'s debt has increased relative to shareholder equity from 0.82 last year to 1.14 today, signaling weakened financials

American Eagle Outfitters, Inc. has a net debt to EBITDA ratio of 3.21x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

American Eagle Outfitters, Inc.'s interest coverage ratio of 34.81 indicates that earnings with good margin can cover interest payments on company debt

American Eagle Outfitters, Inc.'s profit margin has decreased (19.03%) in the last year from 6.18% to 5.00%, signaling decreasing performance

American Eagle Outfitters, Inc.'s short-term assets of $1.31B exceed its short-term liabilities of $865.64M

American Eagle Outfitters, Inc.'s return on assets of 6.87% is higher than the 5.00% threshold, indicating efficient asset utilization

American Eagle Outfitters, Inc.'s return on equity of 17.24%, is higher than 15.00%, indicating good performance

American Eagle Outfitters, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

American Eagle Outfitters, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

American Eagle Outfitters, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

American Eagle Outfitters, Inc. has a free cash flow yield of 6.36%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

American Eagle Outfitters, Inc.'s yearly earnings has decreased 41.71% since last year from $329.38M to $191.98M, signaling decreasing performance

American Eagle Outfitters, Inc.'s yearly revenue has increased 3.16% since last year from $5.33B to $5.50B, signaling increasing performance

ROIC 8.95% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

American Eagle Outfitters, Inc.'s 3-year revenue CAGR of 3.28% is positive, indicating growing revenue over the past 3 years

American Eagle Outfitters, Inc. had revenue growth in 4 out of 5 years, indicating consistent revenue performance

American Eagle Outfitters, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

American Eagle Outfitters, Inc. is undervalued relative to its fair value price of 39.62 based on Discounted Cash Flow model

American Eagle Outfitters, Inc. has an earnings yield of 9.12%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

American Eagle Outfitters, Inc. is overvalued relative to its fair value price of 13.71 based on EBITDA multiple model

American Eagle Outfitters, Inc. has an EV/EBITDA ratio of 9.81x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

American Eagle Outfitters, Inc. is undervalued relative to its fair value price of 42.68 based on Earnings Fair Value model

American Eagle Outfitters, Inc. had non-positive diluted EPS five years ago; the PEG ratio is not meaningful and the check fails.

American Eagle Outfitters, Inc. has a price-to-book ratio of 1.87x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

American Eagle Outfitters, Inc. has a price-to-sales ratio of 0.55x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue