AEONEUTRAL

Return on Equity (ROE)

11.4%

Higher than 58% of Consumer Cyclical sector peers

Updated 1054h ago

Sector Performance

58th percentile

AEO

11.4%

Sector Median

8.7%

Sector Avg

-37.7%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity — a higher ROE indicates more efficient use of investor capital.

American Eagle Outfitters’ current ROE of 11.4% sits above the Consumer Cyclical sector median of 8.7%, placing it in the 60th percentile among its peers. Neither a year-over-year nor a quarter-over-quarter change is available, so no trend direction can be assessed from the reported data. The combination of an above-median ROE with no visible trend suggests the company currently delivers solid efficiency relative to peers, but the lack of trajectory prevents any clear judgment on improving or deteriorating performance. This static picture supports the overall NEUTRAL verdict, as the level is favorable yet unaccompanied by momentum or a standout edge.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about AEO?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does AEO's Return on Equity (ROE) compare to its sector?

AEO's Return on Equity (ROE) of 11.4% compares to a Consumer Cyclical sector median of 8.7%, placing it in the 58th percentile.

Who are AEO's closest peers by Return on Equity (ROE)?

The closest Consumer Cyclical peers by Return on Equity (ROE) include: LI (-2.5%), XPEV (-3.6%), HMC (-3.8%), CROX (-6.1%), CZR (-10.7%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.