When you look at NYSE:ANF, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Last update: Sep 3, 2024

Discover ABERCROMBIE & FITCH CO-CL A (NYSE:ANF), an undervalued stock highlighted by our stock screener. NYSE:ANF showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

ChartMill's Evaluation of Valuation

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 7 out of 10:

Based on the Price/Earnings ratio, ANF is valued a bit cheaper than the industry average as 69.67% of the companies are valued more expensively.
ANF's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 30.73.
68.03% of the companies in the same industry are more expensive than ANF, based on the Price/Forward Earnings ratio.
ANF is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.86, which is the current average of the S&P500 Index.
60.66% of the companies in the same industry are more expensive than ANF, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ANF is valued a bit cheaper than 78.69% of the companies in the same industry.
The 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.

Profitability Insights: 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:

With an excellent Return On Assets value of 14.32%, ANF belongs to the best of the industry, outperforming 90.98% of the companies in the same industry.
ANF has a better Return On Equity (39.43%) than 87.70% of its industry peers.
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 last Return On Invested Capital (22.51%) for ANF is above the 3 year average (12.86%), which is a sign of increasing profitability.
The Profit Margin of ANF (9.53%) is better than 90.98% of its industry peers.
ANF's Profit Margin has improved in the last couple of years.
ANF has a Operating Margin of 13.09%. This is amongst the best in the industry. ANF outperforms 90.98% of its industry peers.
In the last couple of years the Operating Margin of ANF has grown nicely.
ANF's Gross Margin of 64.07% is amongst the best of the industry. ANF outperforms 94.26% of its industry peers.

A Closer Look at Health for NYSE:ANF

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:ANF has earned a 8 out of 10:

ANF has an Altman-Z score of 6.08. This indicates that ANF is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ANF (6.08) is better than 94.26% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 0.36, ANF belongs to the top of the industry, outperforming 83.61% 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's Debt to Equity ratio of 0.20 is fine compared to the rest of the industry. ANF outperforms 60.66% of its industry peers.
ANF has a Current ratio of 1.64. This is in the better half of the industry: ANF outperforms 66.39% of its industry peers.
ANF has a Quick ratio of 1.15. This is in the better half of the industry: ANF outperforms 79.51% of its industry peers.

Assessing Growth for NYSE:ANF

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:ANF has received a 7 out of 10:

ANF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 308.66%, which is quite impressive.
The Earnings Per Share has been growing by 39.75% on average over the past years. This is a very strong growth
The Revenue has grown by 21.11% 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.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of ANF for a complete fundamental analysis.

Keep in mind

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.