Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
American Eagle Outfitters's 10-Year RORE % for the quarter that ended in Apr. 2026 was 8.54%.
The industry rank for American Eagle Outfitters's 10-Year RORE % or its related term are showing as below:
FRA:AFG's 10-Year RORE % is ranked better than 55.9% of 703
companies
in the Retail - Cyclical industry
Industry Median: 6.51
vs FRA:AFG: 8.54
American Eagle Outfitters (FRA:AFG) 10-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 10-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
American Eagle Outfitters 10-Year RORE % Related Terms
American Eagle Outfitters 10-Year RORE % 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: 10-Year RORE % Comparison
For the Apparel Retail subindustry, American Eagle Outfitters's 10-Year RORE %, along with its competitors' market caps and 10-Year RORE % 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 10-Year RORE % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, American Eagle Outfitters's 10-Year RORE % distribution charts can be found below:
* The bar in red indicates where American Eagle Outfitters's 10-Year RORE % 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 10-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Apr. 2026 and 10-year before.
American Eagle Outfitters (FRA:AFG) has a 10-Year RORE % of 8.54 as of Apr. 2026. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on American Eagle Outfitters and its competitors. According to the industry distribution chart, American Eagle Outfitters ranks #310 out of 703 companies in the Retail - Cyclical industry, placing it in the top 44.1%.
Is American Eagle Outfitters' 10-Year RORE % too high?
American Eagle Outfitters' current 10-Year RORE % is 8.54. The Retail - Cyclical industry median 10-Year RORE % is 6.51. American Eagle Outfitters' value of 8.54 is 31.2% above this industry median. Based on the distribution chart, American Eagle Outfitters ranks #310 out of 703 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' 10-Year RORE % compare to BKE and ANF?
According to the Retail - Cyclical industry distribution chart, American Eagle Outfitters ranks #310 out of 703 companies for 10-Year RORE %. This puts American Eagle Outfitters in the upper half of its industry. The industry median 10-Year RORE % is 6.51. American Eagle Outfitters' value of 8.54 is 31.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 10-Year RORE % for a Retail - Cyclical company?
The median 10-Year RORE % among Retail - Cyclical companies is 6.51, based on 703 companies in the industry. Companies in the top quartile (top 25%) have a 10-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 10-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Eagle Outfitters's current 10-Year RORE % of 8.54 is 31.2% above 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 10-Year RORE % mean?
A high 10-Year RORE % can signal that a stock is expensive relative to its fundamentals. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on American Eagle Outfitters and its competitors. For the Retail - Cyclical industry, the median 10-Year RORE % is 6.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Eagle Outfitters's current 10-Year RORE % is 8.54. 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 €14.60 — trading 21.5% below its estimated fair value. The current 10-Year RORE % is 8.54 and 31.2% above the Retail - Cyclical industry median of 6.51. 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 10-Year RORE % calculated?
10-Year RORE % is calculated from a company's financial statements. For American Eagle Outfitters (FRA:AFG), the current 10-Year RORE % is 8.54 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 €14.60 is trading 21.5% below its estimated GF Value™ of €18.59.
GuruFocus considers American Eagle Outfitters to be Modestly Undervalued.
Key valuation signals for FRA:AFG:
10-Year RORE %: 8.54
GF Value™: €18.59 vs. price of €14.60 (21.5% below fair value)
Industry Position: 31.2% above the Retail - Cyclical median (#310 of 703)
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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