Don't overlook NYSE:ANF—a stock with solid growth prospects and a reasonable valuation.

Here's ABERCROMBIE & FITCH CO-CL A (NYSE:ANF) for you, a growth stock our stock screener believes is undervalued. NYSE:ANF is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Growth Examination for NYSE:ANF

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:ANF boasts 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.
• ANF shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 39.75% yearly.
• 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 22.85% on average over the next years. This is a very strong growth
• 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.

Understanding NYSE:ANF's Valuation Score

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:ANF boasts a 7 out of 10:

• 72.73% of the companies in the same industry are more expensive than ANF, based on the Price/Earnings ratio.
• Compared to an average S&P500 Price/Earnings ratio of 28.81, ANF is valued a bit cheaper.
• 71.07% of the companies in the same industry are more expensive than ANF, based on the Price/Forward Earnings ratio.
• Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, ANF is valued a bit cheaper.
• 69.42% of the companies in the same industry are more expensive than ANF, based on the Enterprise Value to EBITDA ratio.
• ANF's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ANF is cheaper than 78.51% 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.
• A more expensive valuation may be justified as ANF's earnings are expected to grow with 22.85% in the coming years.

Understanding NYSE:ANF's Health Score

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:

• An Altman-Z score of 6.17 indicates that ANF is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 6.17, ANF belongs to the best 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.
• With a decent Quick ratio value of 0.93, ANF is doing good in the industry, outperforming 74.38% of the companies in the same industry.
• 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.

A Closer Look at Profitability 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 16.45%, ANF belongs to the top of the industry, outperforming 95.04% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 41.58%, ANF belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
• The Return On Invested Capital of ANF (26.56%) is better than 94.21% of its industry peers.
• The 3 year average ROIC (12.86%) for ANF is below the current ROIC(26.56%), indicating increased profibility in the last year.
• The Profit Margin of ANF (10.76%) is better than 95.04% of its industry peers.
• ANF's Profit Margin has improved in the last couple of years.
• The Operating Margin of ANF (14.40%) is better than 93.39% of its industry peers.
• ANF's Operating Margin has improved in the last couple of years.
• The Gross Margin of ANF (64.60%) is better than 94.21% of its industry peers.

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

Our latest full fundamental report of ANF contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.