American Eagle OutfittersFRA:AFG -1.67%80 Pretax Margin % is 2.31% as of Apr. 2026, which is 65% below its 10-year median of 6.63. 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 1,128 Retail - Cyclical companies, American Eagle Outfitters ranks better than 66.84% on this metric.
The historical rank and industry rank for American Eagle Outfitters's Pretax Margin % or its related term are showing as below:
FRA:AFG'
s Pretax Margin % Range Over the Past 10 Years
Min: -7.78 Med: 6.63 Max: 11.15
Current: 6.4
FRA:AFG's Pretax Margin % is ranked better than 66.84% of 1128
companies
in the Retail - Cyclical industry
Industry Median: 3.135
vs FRA:AFG: 6.40
American Eagle Outfitters (FRA:AFG) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
American Eagle Outfitters Pretax Margin % Related Terms
American Eagle Outfitters Pretax 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.
FRA:AFG vs BKE, ANF, CRI: Pretax Margin % Comparison
For the Apparel Retail subindustry, American Eagle Outfitters's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, American Eagle Outfitters's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where American Eagle Outfitters's Pretax 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 Pretax Margin % of 2.31% as of Apr. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on American Eagle Outfitters and its competitors. This is 65% below median its historical median of 6.63. According to the industry distribution chart, American Eagle Outfitters ranks #374 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 33.2%.
Is American Eagle Outfitters' Pretax Margin % too high?
American Eagle Outfitters' current Pretax Margin % of 2.31% is 65% below median its 10-year median of 6.63. The Retail - Cyclical industry median Pretax Margin % is 3.14. American Eagle Outfitters' value of 2.31% is 26.3% below this industry median. Based on the distribution chart, American Eagle Outfitters ranks #374 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' Pretax Margin % compare to BKE and ANF?
According to the Retail - Cyclical industry distribution chart, American Eagle Outfitters ranks #374 out of 1128 companies for Pretax Margin %. This puts American Eagle Outfitters in the upper half of its industry. The industry median Pretax Margin % is 3.14. American Eagle Outfitters' value of 2.31% is 26.3% below this benchmark. While the company's 10-year median is 6.63 vs. the industry median of 3.14, 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 Pretax Margin % for a Retail - Cyclical company?
The median Pretax Margin % among Retail - Cyclical companies is 3.14, based on 1,128 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Eagle Outfitters's current Pretax Margin % of 2.31% is 26.3% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on American Eagle Outfitters and its competitors. For the Retail - Cyclical industry, the median Pretax Margin % is 3.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Eagle Outfitters's current Pretax Margin % is 2.31%, which is 65% below median its own 10-year median of 6.63. 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 Pretax Margin % is 2.31%, which is 65% below median its 10-year median of 6.63 and 26.3% below the Retail - Cyclical industry median of 3.14. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For American Eagle Outfitters (FRA:AFG), the current Pretax Margin % is 2.31% 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:
Pretax Margin %: 2.31% (65% below median its 10-year median of 6.63)
GF Value™: €18.64 vs. price of €15.60 (16.3% below fair value)
Industry Position: 26.3% below the Retail - Cyclical median (#374 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.
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