American Eagle OutfittersFRA:AFG -1.58%80 Interest Coverage is 3.59 as of Apr. 2026, which is 95% below its 10-year median of 79.72. GuruFocus rates FRA:AFG with a GF Score™ of 80/100 and a GF Value™ of €18.77 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 828 Retail - Cyclical companies, American Eagle Outfitters ranks better than 79.59% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. American Eagle Outfitters's
Operating Income
for the
three
months ended in Apr. 2026 was €24 Mil. American Eagle Outfitters's Interest Expense for the
three
months ended in Apr. 2026 was €-7 Mil.
American Eagle Outfitters's interest coverage for the quarter that ended in Apr. 2026 was 3.59.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for American Eagle Outfitters's Interest Coverage or its related term are showing as below:
FRA:AFG'
s Interest Coverage Range Over the Past 10 Years
Min: 0.34 Med: 79.72 Max: No Debt
Current: 34.81
FRA:AFG's Interest Coverage is ranked better than 79.59% of 828
companies
in the Retail - Cyclical industry
Industry Median: 7.915
vs FRA:AFG: 34.81
American Eagle Outfitters (FRA:AFG) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
American Eagle Outfitters Interest Coverage Related Terms
American Eagle Outfitters Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:AFG vs BKE, ANF, CRI: Interest Coverage Comparison
For the Apparel Retail subindustry, American Eagle Outfitters's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, American Eagle Outfitters's Interest Coverage distribution charts can be found below:
* The bar in red indicates where American Eagle Outfitters's Interest Coverage falls into.
American Eagle Outfitters Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 Interest Coverage of 3.59 as of Apr. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on American Eagle Outfitters and its competitors. This is 95% below median its historical median of 79.72. Over the past decade, American Eagle Outfitters' Interest Coverage has ranged from 0.34 to 10,000.00. According to the industry distribution chart, American Eagle Outfitters ranks #169 out of 828 companies in the Retail - Cyclical industry, placing it in the top 20.4%.
Is American Eagle Outfitters' Interest Coverage too high?
American Eagle Outfitters' current Interest Coverage of 3.59 is 95% below median its 10-year median of 79.72. Over the past 10 years, this metric has ranged from a low of 0.34 to a high of 10,000.00. The Retail - Cyclical industry median Interest Coverage is 7.92. American Eagle Outfitters' value of 3.59 is 54.6% below this industry median. Based on the distribution chart, American Eagle Outfitters ranks #169 out of 828 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. 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' Interest Coverage compare to BKE and ANF?
According to the Retail - Cyclical industry distribution chart, American Eagle Outfitters ranks #169 out of 828 companies for Interest Coverage. This places American Eagle Outfitters in the top 20% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 7.92. American Eagle Outfitters' value of 3.59 is 54.6% below this benchmark. Historically, American Eagle Outfitters' own Interest Coverage has ranged from 0.34 to 10,000.00 over the past decade. While the company's 10-year median is 79.72 vs. the industry median of 7.92, 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 Interest Coverage for a Retail - Cyclical company?
The median Interest Coverage among Retail - Cyclical companies is 7.92, based on 828 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Eagle Outfitters's current Interest Coverage of 3.59 is 54.6% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on American Eagle Outfitters and its competitors. For the Retail - Cyclical industry, the median Interest Coverage is 7.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Eagle Outfitters's current Interest Coverage is 3.59, which is 95% below median its own 10-year median of 79.72. 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 €18.77, compared to a current price of €15.87 — trading 15.5% below its estimated fair value. The current Interest Coverage is 3.59, which is 95% below median its 10-year median of 79.72 and 54.6% below the Retail - Cyclical industry median of 7.92. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For American Eagle Outfitters (FRA:AFG), the current Interest Coverage is 3.59 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 €15.87 is trading 15.5% below its estimated GF Value™ of €18.77.
GuruFocus considers American Eagle Outfitters to be Modestly Undervalued.
Key valuation signals for FRA:AFG:
Interest Coverage: 3.59 (95% below median its 10-year median of 79.72)
GF Value™: €18.77 vs. price of €15.87 (15.5% below fair value)
Industry Position: 54.6% below the Retail - Cyclical median (#169 of 828)
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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