American Eagle OutfittersFRA:AFG -1.67%80 Current Ratio is 1.55 as of Apr. 2026, which is 7% below its 10-year median of 1.66. GuruFocus rates FRA:AFG with a GF Score™ of 80/100 and a GF Value™ of €18.64 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,132 Retail - Cyclical companies, American Eagle Outfitters ranks worse than 50.62% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. American Eagle Outfitters's current ratio for the quarter that ended in Apr. 2026 was 1.55.
American Eagle Outfitters has a current ratio of 1.55. It generally indicates good short-term financial strength.
The historical rank and industry rank for American Eagle Outfitters's Current Ratio or its related term are showing as below:
FRA:AFG'
s Current Ratio Range Over the Past 10 Years
Min: 1.33 Med: 1.66 Max: 2.35
Current: 1.55
During the past 13 years, American Eagle Outfitters's highest Current Ratio was 2.35. The lowest was 1.33. And the median was 1.66.
FRA:AFG's Current Ratio is ranked worse than 50.62% of 1132
companies
in the Retail - Cyclical industry
Industry Median: 1.58
vs FRA:AFG: 1.55
American Eagle Outfitters (FRA:AFG) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
American Eagle Outfitters Current Ratio Related Terms
American Eagle Outfitters Current Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:AFG vs BKE, ANF, CRI: Current Ratio Comparison
For the Apparel Retail subindustry, American Eagle Outfitters's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
American Eagle Outfitters Current Ratio vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, American Eagle Outfitters's Current Ratio distribution charts can be found below:
* The bar in red indicates where American Eagle Outfitters's Current Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
American Eagle Outfitters (FRA:AFG) has a Current Ratio of 1.55 as of Apr. 2026. This is near median its historical median of 1.66. Over the past decade, American Eagle Outfitters' Current Ratio has ranged from 1.33 to 2.35. According to the industry distribution chart, American Eagle Outfitters ranks #573 out of 1132 companies in the Retail - Cyclical industry, placing it in the top 50.6%.
Is American Eagle Outfitters' Current Ratio too high?
American Eagle Outfitters' current Current Ratio of 1.55 is near median its 10-year median of 1.66. Over the past 10 years, this metric has ranged from a low of 1.33 to a high of 2.35. The Retail - Cyclical industry median Current Ratio is 1.58. American Eagle Outfitters' value of 1.55 is 1.9% below this industry median. Based on the distribution chart, American Eagle Outfitters ranks #573 out of 1132 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, American Eagle Outfitters has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does American Eagle Outfitters' Current Ratio compare to BKE and ANF?
According to the Retail - Cyclical industry distribution chart, American Eagle Outfitters ranks #573 out of 1132 companies for Current Ratio. This places American Eagle Outfitters in the lower half of its industry. The industry median Current Ratio is 1.58. American Eagle Outfitters' value of 1.55 is 1.9% below this benchmark. Historically, American Eagle Outfitters' own Current Ratio has ranged from 1.33 to 2.35 over the past decade. While the company's 10-year median is 1.66 vs. the industry median of 1.58, American Eagle Outfitters has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Retail - Cyclical company?
The median Current Ratio among Retail - Cyclical companies is 1.58, based on 1,132 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Eagle Outfitters's current Current Ratio of 1.55 is 1.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Retail - Cyclical industry, the median Current Ratio is 1.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Eagle Outfitters's current Current Ratio is 1.55, which is near median its own 10-year median of 1.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Eagle Outfitters stock overvalued right now?
Based on GuruFocus' analysis, American Eagle Outfitters (FRA:AFG) is currently considered Modestly Undervalued. The stock's GF Value™ is €18.64, compared to a current price of €15.60 — trading 16.3% below its estimated fair value. The current Current Ratio is 1.55, which is near median its 10-year median of 1.66 and 1.9% below the Retail - Cyclical industry median of 1.58. American Eagle Outfitters' overall GF Score™ is 80/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For American Eagle Outfitters (FRA:AFG), the current Current Ratio is 1.55 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is American Eagle Outfitters (FRA:AFG) Overvalued in 2026?
Based on GuruFocus' analysis, American Eagle Outfitters stock appears to be undervalued.
The current stock price of €15.60 is trading 16.3% below its estimated GF Value™ of €18.64.
GuruFocus considers American Eagle Outfitters to be Modestly Undervalued.
Key valuation signals for FRA:AFG:
Current Ratio: 1.55 (near median its 10-year median of 1.66)
GF Value™: €18.64 vs. price of €15.60 (16.3% below fair value)
Industry Position: 1.9% below the Retail - Cyclical median (#573 of 1132)
No single metric tells the full story. See the FRA:AFG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
American Eagle Outfitters Inc is a specialty retailer. The company is engaged in the retail of apparel and accessories with company stores in the United States, Canada, Mexico, and Hong Kong. The Company leases all store premises, regional distribution facilities, some of its office space, and certain information technology and office equipment. American Eagle also has its online business. It operates in two segments: American Eagle and Aerie. The majority of its revenue comes from its primary brand, American Eagle, which offers an assortment of specialty apparel, accessories, and personal care products for women and men. Geographically, it generates the majority of its revenue from the United States.
80GF Score
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