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American Eagle OutfittersFRA:AFG +0.22%80 Return-on-Tangible-Asset is 2.49% as of Apr. 2026, which is 71% below its 10-year median of 8.55. GuruFocus rates FRA:AFG with a GF Score™ of 80/100 and a GF Value™ of €18.50 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,130 Retail - Cyclical companies, American Eagle Outfitters ranks better than 73.72% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. American Eagle Outfitters's annualizedNet Income for the quarter that ended in Apr. 2026 was €80 Mil. American Eagle Outfitters's average total tangible assets for the quarter that ended in Apr. 2026 was €3,227 Mil. Therefore, American Eagle Outfitters's annualized Return-on-Tangible-Asset for the quarter that ended in Apr. 2026 was 2.49%.
The historical rank and industry rank for American Eagle Outfitters's Return-on-Tangible-Asset or its related term are showing as below:
FRA:AFG'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -6.3 Med: 8.55 Max: 14.55
Current: 7.46
During the past 13 years, American Eagle Outfitters's highest Return-on-Tangible-Asset was 14.55%. The lowest was -6.30%. And the median was 8.55%.
FRA:AFG's Return-on-Tangible-Asset is ranked better than 73.72% of 1130
companies
in the Retail - Cyclical industry
Industry Median: 2.92
vs FRA:AFG: 7.46
American Eagle Outfitters (FRA:AFG) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
American Eagle Outfitters Return-on-Tangible-Asset Related Terms
American Eagle Outfitters Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for American Eagle Outfitters's Return-on-Tangible-Asset can be seen below:
* 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 Return-on-Tangible-Asset Chart
FRA:AFG vs BKE, ANF, CRI: Return-on-Tangible-Asset Comparison
For the Apparel Retail subindustry, American Eagle Outfitters's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, American Eagle Outfitters's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where American Eagle Outfitters's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Apr. 2026) net income data.
What does a Return-on-Tangible-Asset of 2.49% mean?
American Eagle Outfitters (FRA:AFG) has a Return-on-Tangible-Asset of 2.49% as of Apr. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on American Eagle Outfitters and its competitors. This is 71% below median its historical median of 8.55. According to the industry distribution chart, American Eagle Outfitters ranks #297 out of 1130 companies in the Retail - Cyclical industry, placing it in the top 26.3%.
Is American Eagle Outfitters' Return-on-Tangible-Asset too high?
American Eagle Outfitters' current Return-on-Tangible-Asset of 2.49% is 71% below median its 10-year median of 8.55. The Retail - Cyclical industry median Return-on-Tangible-Asset is 2.92. American Eagle Outfitters' value of 2.49% is 14.7% below this industry median. Based on the distribution chart, American Eagle Outfitters ranks #297 out of 1130 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' Return-on-Tangible-Asset compare to BKE and ANF?
According to the Retail - Cyclical industry distribution chart, American Eagle Outfitters ranks #297 out of 1130 companies for Return-on-Tangible-Asset. This puts American Eagle Outfitters in the upper half of its industry. The industry median Return-on-Tangible-Asset is 2.92. American Eagle Outfitters' value of 2.49% is 14.7% below this benchmark. While the company's 10-year median is 8.55 vs. the industry median of 2.92, 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 Return-on-Tangible-Asset for a Retail - Cyclical company?
The median Return-on-Tangible-Asset among Retail - Cyclical companies is 2.92, based on 1,130 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Eagle Outfitters's current Return-on-Tangible-Asset of 2.49% is 14.7% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on American Eagle Outfitters and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Asset is 2.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Eagle Outfitters's current Return-on-Tangible-Asset is 2.49%, which is 71% below median its own 10-year median of 8.55. 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 €18.50, compared to a current price of €13.96 — trading 24.6% below its estimated fair value. The current Return-on-Tangible-Asset is 2.49%, which is 71% below median its 10-year median of 8.55 and 14.7% below the Retail - Cyclical industry median of 2.92. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For American Eagle Outfitters (FRA:AFG), the current Return-on-Tangible-Asset is 2.49% 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 €13.96 is trading 24.6% below its estimated GF Value™ of €18.50.
GuruFocus considers American Eagle Outfitters to be Modestly Undervalued.
Key valuation signals for FRA:AFG:
Return-on-Tangible-Asset: 2.49% (71% below median its 10-year median of 8.55)
GF Value™: €18.50 vs. price of €13.96 (24.6% below fair value)
Industry Position: 14.7% below the Retail - Cyclical median (#297 of 1130)
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
Get the complete analysis for FRA:AFG
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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