American Eagle Outfitters operates as a retailer of apparel and accessories in the United States and internationally, aimed at the 15-25 year old demographic. The company was founded in 1977 and is based in Pittsburgh, Pennsylvania.
AEO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for AEO, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that American Eagle Outfitters Inc ranked in the 8th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for AEO, they are:
The company's compound free cash flow growth rate over the past 5.53 years comes in at -0.08%; that's greater than only 15.71% of US stocks we're applying DCF forecasting to.
American Eagle Outfitters Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -35.48. This coverage rate is greater than that of just 3.65% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, American Eagle Outfitters Inc experienced a tax rate of about 22% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than 76% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as AEO, try BYD, KMX, MLCO, TSLA, and UAA.
American Eagle Outfitters said Thursday it expects fourth-quarter revenue to drop in the low single-digit percentages due to weak in-store traffic and store closures caused by the pandemic. Shares of American Eagle Outfitters rose 3.65% to $23.55 on Thursday. The Pittsburgh, Penn.-based company said it expects its Aerie brand of intimate women's apparel to report strong online sales and revenue growth of more than 20% in the fourth quarter.
American Eagle Outfitters Inc. said early Thursday that it expects fourth-quarter revenue to drop in the low-single digits, with the Aerie brand up in the high-20% range but the namesake brand down in the low-double digits. The apparel and accessories retailer attributed the declines to a pandemic-related drop in store hours and traffic. The FactSet consensus is for revenue of $1.31 billion, suggesting a 0.1% decline year-over-year. American Eagle stock fell 3% in premarket trading. That business update and the unveiling of American Eagle's long-term growth strategy were announced ahead of the company's investor meeting, taking place on Thursday. The plan, called "Real Power. Real Growth," aims to double Aerie brand revenue to $2 billion by 2023, jumpstart the namesake brand's profit an...
American Eagle Outfitters, Inc. (NYSE: AEO) will today host a virtual investor meeting to present its "Real Power. Real Growth." value creation plan and unveil its long-term financial outlook. To achieve these goals, AEO has the following strategic priorities: