NYSE:ANF is not too expensive for the growth it is showing.

Our stock screener has singled out ABERCROMBIE & FITCH CO-CL A (NYSE:ANF) as an attractive growth opportunity. NYSE:ANF is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

Evaluating Growth: NYSE:ANF

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:ANF scores a 7 out of 10:

• The Earnings Per Share has grown by an impressive 308.66% over the past year.
• 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.
• ANF shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.11%.
• The Earnings Per Share is expected to grow by 22.59% on average over the next years. This is a very strong growth
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Assessing Valuation for NYSE:ANF

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:ANF has achieved a 7 out of 10:

• Compared to the rest of the industry, the Price/Earnings ratio of ANF indicates a somewhat cheap valuation: ANF is cheaper than 68.59% of the companies listed in the same industry.
• The average S&P500 Price/Earnings ratio is at 30.85. ANF is valued rather cheaply when compared to this.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of ANF indicates a somewhat cheap valuation: ANF is cheaper than 68.59% of the companies listed in the same industry.
• ANF is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.51, which is the current average of the S&P500 Index.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ANF indicates a somewhat cheap valuation: ANF is cheaper than 65.29% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, ANF is valued a bit cheaper than the industry average as 76.03% of the companies are valued more expensively.
• 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 22.59% in the coming years. This may justify a more expensive valuation.

Exploring NYSE:ANF's Health

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:ANF has received a 8 out of 10:

• ANF has an Altman-Z score of 6.13. This indicates that ANF is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 6.13, ANF belongs to the top of the industry, outperforming 91.74% of the companies in the same industry.
• There is no outstanding debt for ANF. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• The Quick ratio of ANF (0.93) is better than 74.38% of its industry peers.
• ANF does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Profitability Assessment of NYSE:ANF

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:ANF scores a 8 out of 10:

• ANF's Return On Assets of 16.45% is amongst the best of the industry. ANF outperforms 95.04% of its industry peers.
• ANF has a better Return On Equity (41.58%) than 90.08% of its industry peers.
• With an excellent Return On Invested Capital value of 26.56%, ANF belongs to the best of the industry, outperforming 94.21% of the companies in the same industry.
• The 3 year average ROIC (12.86%) for ANF is below the current ROIC(26.56%), indicating increased profibility in the last year.
• ANF's Profit Margin of 10.76% is amongst the best of the industry. ANF outperforms 95.04% of its industry peers.
• In the last couple of years the Profit Margin of ANF has grown nicely.
• With an excellent Operating Margin value of 14.40%, ANF belongs to the best of the industry, outperforming 93.39% of the companies in the same industry.
• ANF's Operating Margin has improved in the last couple of years.
• ANF has a Gross Margin of 64.60%. This is amongst the best in the industry. ANF outperforms 94.21% of its industry peers.

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

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

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.