Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
As of Apr. 2026, American Eagle Outfitters has a Sloan Ratio of 2.19%, indicating the company is in the safe zone and there is no funny business with accruals.
American Eagle Outfitters (FRA:AFG) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Apr. 2026, American Eagle Outfitters has a Sloan Ratio of 2.19%, indicating the company is in the safe zone and there is no funny business with accruals.
American Eagle Outfitters Sloan Ratio % Related Terms
American Eagle Outfitters Sloan Ratio % 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: Sloan Ratio % Comparison
For the Apparel Retail subindustry, American Eagle Outfitters's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, American Eagle Outfitters's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where American Eagle Outfitters's Sloan Ratio % falls into.
American Eagle Outfitters Sloan Ratio % Calculation
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
American Eagle Outfitters's Sloan Ratio for the fiscal year that ended in Jan. 2026 is calculated as
American Eagle Outfitters's Net Income for the trailing twelve months (TTM) ended in Apr. 2026 was 66.531 (Jul. 2025 ) + 78.464 (Oct. 2025 ) + 74.807 (Jan. 2026 ) + 20.114 (Apr. 2026 ) = €240 Mil.
American Eagle Outfitters's Cash Flow from Operations for the trailing twelve months (TTM) ended in Apr. 2026 was 23.836 (Jul. 2025 ) + 57.68 (Oct. 2025 ) + 353.925 (Jan. 2026 ) + -55.765 (Apr. 2026 ) = €380 Mil.
American Eagle Outfitters's Cash Flow from Investing for the trailing twelve months (TTM) ended in Apr. 2026 was -53.374 (Jul. 2025 ) + -59.993 (Oct. 2025 ) + -49.951 (Jan. 2026 ) + -52.905 (Apr. 2026 ) = €-216 Mil.
* 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 Sloan Ratio % of 2.19% as of Apr. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on American Eagle Outfitters and its competitors.
Is American Eagle Outfitters' Sloan Ratio % too high?
American Eagle Outfitters' current Sloan Ratio % is 2.19%. 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' Sloan Ratio % compare to BKE and ANF?
American Eagle Outfitters' Sloan Ratio % of 2.19% can be compared against companies in the Retail - Cyclical industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Retail - Cyclical company?
A good Sloan Ratio % depends on the Retail - Cyclical industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on American Eagle Outfitters and its competitors. American Eagle Outfitters's current Sloan Ratio % is 2.19%. 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 €18.48, compared to a current price of €15.12 — trading 18.2% below its estimated fair value. The current Sloan Ratio % is 2.19%. 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 Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For American Eagle Outfitters (FRA:AFG), the current Sloan Ratio % is 2.19% 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 €15.12 is trading 18.2% below its estimated GF Value™ of €18.48.
GuruFocus considers American Eagle Outfitters to be Modestly Undervalued.
Key valuation signals for FRA:AFG:
Sloan Ratio %: 2.19%
GF Value™: €18.48 vs. price of €15.12 (18.2% below fair value)
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
Get the complete analysis for FRA:AFG
Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:AFG has been successfully added to your 
