While growth is established for NYSE:ANF, the stock's valuation remains reasonable.

Last update: Aug 23, 2024

Consider ABERCROMBIE & FITCH CO-CL A (NYSE:ANF) as an affordable growth stock, identified by our stock screening tool. NYSE:ANF is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Growth Assessment of NYSE:ANF

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:ANF was assigned a score of 7 for growth:

ANF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 783.52%, which is quite impressive.
Measured over the past years, ANF shows a very strong growth in Earnings Per Share. The EPS has been growing by 39.75% on average per year.
The Revenue has grown by 20.00% in the past year. This is a very strong growth!
ANF is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.55% yearly.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Valuation Analysis for NYSE:ANF

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:ANF scores a 6 out of 10:

Based on the Price/Earnings ratio, ANF is valued a bit cheaper than the industry average as 66.39% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.64, ANF is valued a bit cheaper.
Based on the Price/Forward Earnings ratio, ANF is valued a bit cheaper than the industry average as 60.66% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.00, ANF is valued a bit cheaper.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ANF indicates a somewhat cheap valuation: ANF is cheaper than 75.41% of the companies listed in the same industry.
ANF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ANF has an outstanding profitability rating, which may justify a higher PE ratio.
ANF's earnings are expected to grow with 20.55% in the coming years. This may justify a more expensive valuation.

Unpacking NYSE:ANF's Health Rating

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:ANF scores a 8 out of 10:

An Altman-Z score of 6.36 indicates that ANF is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.36, ANF belongs to the top of the industry, outperforming 93.44% of the companies in the same industry.
ANF has a debt to FCF ratio of 0.36. This is a very positive value and a sign of high solvency as it would only need 0.36 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.36, ANF belongs to the best of the industry, outperforming 84.43% of the companies in the same industry.
ANF has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
ANF has a Debt to Equity ratio of 0.20. This is in the better half of the industry: ANF outperforms 61.48% of its industry peers.
With a decent Current ratio value of 1.64, ANF is doing good in the industry, outperforming 67.21% of the companies in the same industry.
The Quick ratio of ANF (1.15) is better than 79.51% of its industry peers.

Profitability Examination for NYSE:ANF

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:ANF has achieved a 8:

Looking at the Return On Assets, with a value of 14.32%, ANF belongs to the top of the industry, outperforming 90.98% of the companies in the same industry.
Looking at the Return On Equity, with a value of 39.43%, ANF belongs to the top of the industry, outperforming 88.52% of the companies in the same industry.
With an excellent Return On Invested Capital value of 22.51%, ANF belongs to the best of the industry, outperforming 89.34% of the companies in the same industry.
The 3 year average ROIC (12.86%) for ANF is below the current ROIC(22.51%), indicating increased profibility in the last year.
ANF has a better Profit Margin (9.53%) than 90.98% of its industry peers.
In the last couple of years the Profit Margin of ANF has grown nicely.
ANF's Operating Margin of 13.09% is amongst the best of the industry. ANF outperforms 90.98% of its industry peers.
In the last couple of years the Operating Margin of ANF has grown nicely.
With an excellent Gross Margin value of 64.07%, ANF belongs to the best of the industry, outperforming 94.26% of the companies in the same industry.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of ANF

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.