NYSE:ANF is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

ABERCROMBIE & FITCH CO-CL A (NYSE:ANF) has caught the attention of our stock screener as a great value stock. NYSE:ANF excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

What does the Valuation looks like for NYSE:ANF

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:ANF has received a 7 out of 10:

• 71.90% of the companies in the same industry are more expensive than ANF, based on the Price/Earnings ratio.
• ANF's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.96.
• Based on the Price/Forward Earnings ratio, ANF is valued a bit cheaper than the industry average as 71.90% of the companies are valued more expensively.
• When comparing the Price/Forward Earnings ratio of ANF to the average of the S&P500 Index (23.82), we can say ANF is valued slightly cheaper.
• Based on the Enterprise Value to EBITDA ratio, ANF is valued a bit cheaper than the industry average as 71.07% of the companies are valued more expensively.
• 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.
• 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.
• A more expensive valuation may be justified as ANF's earnings are expected to grow with 22.85% in the coming years.

Profitability Assessment of NYSE:ANF

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

• ANF has a Return On Assets of 16.45%. This is amongst the best in the industry. ANF outperforms 95.04% of its industry peers.
• 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.
• 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 has a Profit Margin of 10.76%. This is amongst the best in the industry. ANF outperforms 95.04% of its industry peers.
• ANF's Profit Margin has improved in the last couple of years.
• ANF has a Operating Margin of 14.40%. This is amongst the best in the industry. ANF outperforms 93.39% of its industry peers.
• In the last couple of years the Operating Margin of ANF has grown nicely.
• Looking at the Gross Margin, with a value of 64.60%, ANF belongs to the top of the industry, outperforming 94.21% of the companies in the same industry.

Health Analysis for NYSE:ANF

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:ANF, the assigned 8 for health provides valuable insights:

• An Altman-Z score of 6.11 indicates that ANF is not in any danger for bankruptcy at the moment.
• The Altman-Z score of ANF (6.11) is better than 91.74% of its industry peers.
• ANF has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
• The Quick ratio of ANF (0.93) is better than 74.38% of its industry peers.
• The current and quick ratio evaluation for ANF is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Assessing Growth for NYSE:ANF

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:ANF has achieved 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.
• The Revenue has grown by 21.11% in the past year. This is a very strong growth!
• 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.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.