Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

American Eagle Outfitters, Inc. (AEO)

Company Dividend Discount ModelIndustry: Apparel - RetailSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$16.95 - $31.04$22.78
Multi-Stage$20.57 - $22.53$21.53
Blended Fair Value$22.15
Current Price$16.71
Upside32.58%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS0.78%-0.08%0.540.470.360.640.130.520.540.490.510.54
YoY Growth--15.07%29.43%-43.16%398.58%-75.37%-4.47%9.68%-2.35%-6.74%0.01%
Dividend Yield--4.84%1.92%2.70%4.20%0.37%6.67%2.24%2.45%3.59%3.79%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)208.42
(-) Cash Dividends Paid (M)87.84
(=) Cash Retained (M)120.59
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)41.6826.0515.63
Cash Retained (M)120.59120.59120.59
(-) Cash Required (M)-41.68-26.05-15.63
(=) Excess Retained (M)78.9094.53104.95
(/) Shares Outstanding (M)179.39179.39179.39
(=) Excess Retained per Share0.440.530.59
LTM Dividend per Share0.490.490.49
(+) Excess Retained per Share0.440.530.59
(=) Adjusted Dividend0.931.021.07
WACC / Discount Rate7.96%7.96%7.96%
Growth Rate2.34%3.34%4.34%
Fair Value$16.95$22.78$31.04
Upside / Downside1.43%36.31%85.77%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)208.42215.39222.59230.03237.73245.67253.04
Payout Ratio42.14%51.72%61.29%70.86%80.43%90.00%92.50%
Projected Dividends (M)87.84111.39136.42163.00191.20221.11234.06

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.96%7.96%7.96%
Growth Rate2.34%3.34%4.34%
Year 1 PV (M)102.18103.18104.18
Year 2 PV (M)114.80117.05119.33
Year 3 PV (M)125.83129.55133.35
Year 4 PV (M)135.40140.77146.30
Year 5 PV (M)143.64150.79158.23
PV of Terminal Value (M)3,068.363,221.233,380.12
Equity Value (M)3,690.213,862.584,041.51
Shares Outstanding (M)179.39179.39179.39
Fair Value$20.57$21.53$22.53
Upside / Downside23.10%28.85%34.82%

High-Yield Dividend Screener

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