American Eagle OutfittersSTU:AFG +4.26%80 ROE % is 5.65% as of Apr. 2026, which is 64% below its 10-year median of 15.88. GuruFocus rates STU:AFG with a GF Score™ of 80/100 and a GF Value™ of €18.78 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,097 Retail - Cyclical companies, American Eagle Outfitters ranks better than 78.12% on this metric.
The historical rank and industry rank for American Eagle Outfitters's ROE % or its related term are showing as below:
STU:AFG'
s ROE % Range Over the Past 10 Years
Min: -17.93 Med: 15.88 Max: 33.43
Current: 17.56
During the past 13 years, American Eagle Outfitters's highest ROE % was 33.43%. The lowest was -17.93%. And the median was 15.88%.
STU:AFG's ROE % is ranked better than 78.12% of 1097
companies
in the Retail - Cyclical industry
Industry Median: 6.46
vs STU:AFG: 17.56
American Eagle Outfitters (STU:AFG) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
* 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, American Eagle Outfitters's ROE % distribution charts can be found below:
* The bar in red indicates where American Eagle Outfitters's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
American Eagle Outfitters (STU:AFG) has a ROE % of 5.65% as of Apr. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on American Eagle Outfitters and its competitors. This is 64% below median its historical median of 15.88. According to the industry distribution chart, American Eagle Outfitters ranks #240 out of 1097 companies in the Retail - Cyclical industry, placing it in the top 21.9%.
Is American Eagle Outfitters' ROE % too high?
American Eagle Outfitters' current ROE % of 5.65% is 64% below median its 10-year median of 15.88. The Retail - Cyclical industry median ROE % is 6.46. American Eagle Outfitters' value of 5.65% is 12.5% below this industry median. Based on the distribution chart, American Eagle Outfitters ranks #240 out of 1097 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' ROE % compare to BKE and ANF?
According to the Retail - Cyclical industry distribution chart, American Eagle Outfitters ranks #240 out of 1097 companies for ROE %. This places American Eagle Outfitters in the top 22% of its industry — outperforming the majority of peers. The industry median ROE % is 6.46. American Eagle Outfitters' value of 5.65% is 12.5% below this benchmark. While the company's 10-year median is 15.88 vs. the industry median of 6.46, 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 ROE % for a Retail - Cyclical company?
The median ROE % among Retail - Cyclical companies is 6.46, based on 1,097 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Eagle Outfitters's current ROE % of 5.65% is 12.5% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on American Eagle Outfitters and its competitors. For the Retail - Cyclical industry, the median ROE % is 6.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Eagle Outfitters's current ROE % is 5.65%, which is 64% below median its own 10-year median of 15.88. 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 (STU:AFG) is currently considered Modestly Undervalued. The stock's GF Value™ is €18.78, compared to a current price of €16.27 — trading 13.4% below its estimated fair value. The current ROE % is 5.65%, which is 64% below median its 10-year median of 15.88 and 12.5% below the Retail - Cyclical industry median of 6.46. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For American Eagle Outfitters (STU:AFG), the current ROE % is 5.65% 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 (STU:AFG) Overvalued in 2026?
Based on GuruFocus' analysis, American Eagle Outfitters stock appears to be undervalued.
The current stock price of €16.27 is trading 13.4% below its estimated GF Value™ of €18.78.
GuruFocus considers American Eagle Outfitters to be Modestly Undervalued.
Key valuation signals for STU:AFG:
ROE %: 5.65% (64% below median its 10-year median of 15.88)
GF Value™: €18.78 vs. price of €16.27 (13.4% below fair value)
Industry Position: 12.5% below the Retail - Cyclical median (#240 of 1097)
No single metric tells the full story. See the STU: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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