American Eagle OutfittersFRA:AFG -1.58%80 Net Margin % is 1.97% as of Apr. 2026, which is 60% below its 10-year median of 4.91. 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 1,128 Retail - Cyclical companies, American Eagle Outfitters ranks better than 68.71% on this metric.
The historical rank and industry rank for American Eagle Outfitters's Net Margin % or its related term are showing as below:
FRA:AFG'
s Net Margin % Range Over the Past 10 Years
Min: -5.57 Med: 4.91 Max: 8.37
Current: 4.96
FRA:AFG's Net Margin % is ranked better than 68.71% of 1128
companies
in the Retail - Cyclical industry
Industry Median: 2.33
vs FRA:AFG: 4.96
American Eagle Outfitters (FRA:AFG) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
American Eagle Outfitters Net Margin % Related Terms
American Eagle Outfitters Net Margin % 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.
For the Apparel Retail subindustry, American Eagle Outfitters's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, American Eagle Outfitters's Net Margin % distribution charts can be found below:
* The bar in red indicates where American Eagle Outfitters's Net Margin % 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 Net Margin % of 1.97% as of Apr. 2026. Net margin is the ratio of total net income to net sales. View historical data on American Eagle Outfitters and its competitors. This is 60% below median its historical median of 4.91. According to the industry distribution chart, American Eagle Outfitters ranks #353 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 31.3%.
Is American Eagle Outfitters' Net Margin % too high?
American Eagle Outfitters' current Net Margin % of 1.97% is 60% below median its 10-year median of 4.91. The Retail - Cyclical industry median Net Margin % is 2.33. American Eagle Outfitters' value of 1.97% is 15.5% below this industry median. Based on the distribution chart, American Eagle Outfitters ranks #353 out of 1128 companies in the Retail - Cyclical industry, which is above 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' Net Margin % compare to BKE and ANF?
According to the Retail - Cyclical industry distribution chart, American Eagle Outfitters ranks #353 out of 1128 companies for Net Margin %. This puts American Eagle Outfitters in the upper half of its industry. The industry median Net Margin % is 2.33. American Eagle Outfitters' value of 1.97% is 15.5% below this benchmark. While the company's 10-year median is 4.91 vs. the industry median of 2.33, 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 Net Margin % for a Retail - Cyclical company?
The median Net Margin % among Retail - Cyclical companies is 2.33, based on 1,128 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Eagle Outfitters's current Net Margin % of 1.97% is 15.5% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on American Eagle Outfitters and its competitors. For the Retail - Cyclical industry, the median Net Margin % is 2.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Eagle Outfitters's current Net Margin % is 1.97%, which is 60% below median its own 10-year median of 4.91. 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 Net Margin % is 1.97%, which is 60% below median its 10-year median of 4.91 and 15.5% below the Retail - Cyclical industry median of 2.33. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For American Eagle Outfitters (FRA:AFG), the current Net Margin % is 1.97% 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:
Net Margin %: 1.97% (60% below median its 10-year median of 4.91)
GF Value™: €18.77 vs. price of €15.87 (15.5% below fair value)
Industry Position: 15.5% below the Retail - Cyclical median (#353 of 1128)
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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