American Eagle OutfittersFRA:AFG +0.28%79 Return-on-Tangible-Equity is 6.71% as of Apr. 2026, which is 60% below its 10-year median of 16.67. GuruFocus rates FRA:AFG with a GF Score™ of 79/100 and a GF Value™ of €18.59 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,058 Retail - Cyclical companies, American Eagle Outfitters ranks better than 73.16% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. American Eagle Outfitters's annualized net income for the quarter that ended in Apr. 2026 was €80 Mil. American Eagle Outfitters's average shareholder tangible equity for the quarter that ended in Apr. 2026 was €1,200 Mil. Therefore, American Eagle Outfitters's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was 6.71%.
The historical rank and industry rank for American Eagle Outfitters's Return-on-Tangible-Equity or its related term are showing as below:
FRA:AFG'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -18.93 Med: 16.67 Max: 40.62
Current: 21.05
During the past 13 years, American Eagle Outfitters's highest Return-on-Tangible-Equity was 40.62%. The lowest was -18.93%. And the median was 16.67%.
FRA:AFG's Return-on-Tangible-Equity is ranked better than 73.16% of 1058
companies
in the Retail - Cyclical industry
Industry Median: 8.325
vs FRA:AFG: 21.05
American Eagle Outfitters (FRA:AFG) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
American Eagle Outfitters Return-on-Tangible-Equity Related Terms
American Eagle Outfitters Return-on-Tangible-Equity Historical Data
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The historical data trend for American Eagle Outfitters's Return-on-Tangible-Equity 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-Equity Chart
FRA:AFG vs BKE, ANF, CRI: Return-on-Tangible-Equity Comparison
For the Apparel Retail subindustry, American Eagle Outfitters's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, American Eagle Outfitters's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where American Eagle Outfitters's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 6.71% mean?
American Eagle Outfitters (FRA:AFG) has a Return-on-Tangible-Equity of 6.71% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on American Eagle Outfitters and its competitors. This is 60% below median its historical median of 16.67. According to the industry distribution chart, American Eagle Outfitters ranks #284 out of 1058 companies in the Retail - Cyclical industry, placing it in the top 26.8%.
Is American Eagle Outfitters' Return-on-Tangible-Equity too high?
American Eagle Outfitters' current Return-on-Tangible-Equity of 6.71% is 60% below median its 10-year median of 16.67. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.33. American Eagle Outfitters' value of 6.71% is 19.4% below this industry median. Based on the distribution chart, American Eagle Outfitters ranks #284 out of 1058 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, American Eagle Outfitters has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does American Eagle Outfitters' Return-on-Tangible-Equity compare to BKE and ANF?
According to the Retail - Cyclical industry distribution chart, American Eagle Outfitters ranks #284 out of 1058 companies for Return-on-Tangible-Equity. This puts American Eagle Outfitters in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.33. American Eagle Outfitters' value of 6.71% is 19.4% below this benchmark. While the company's 10-year median is 16.67 vs. the industry median of 8.33, 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 Return-on-Tangible-Equity for a Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.33, based on 1,058 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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-Equity of 6.71% is 19.4% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on American Eagle Outfitters and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.33 — 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-Equity is 6.71%, which is 60% below median its own 10-year median of 16.67. 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 €18.59, compared to a current price of €14.31 — trading 23.1% below its estimated fair value. The current Return-on-Tangible-Equity is 6.71%, which is 60% below median its 10-year median of 16.67 and 19.4% below the Retail - Cyclical industry median of 8.33. American Eagle Outfitters' overall GF Score™ is 79/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For American Eagle Outfitters (FRA:AFG), the current Return-on-Tangible-Equity is 6.71% 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 €14.31 is trading 23.1% below its estimated GF Value™ of €18.59.
GuruFocus considers American Eagle Outfitters to be Modestly Undervalued.
Key valuation signals for FRA:AFG:
Return-on-Tangible-Equity: 6.71% (60% below median its 10-year median of 16.67)
GF Value™: €18.59 vs. price of €14.31 (23.1% below fair value)
Industry Position: 19.4% below the Retail - Cyclical median (#284 of 1058)
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.
79GF Score
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