Investors should take note of NYSE:ANF, a growth stock that remains attractively priced.

Last update: Dec 9, 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 Insights: NYSE:ANF

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:ANF has earned a 7 for growth:

The Earnings Per Share has grown by an impressive 144.79% 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 19.59% in the past year. This is quite good.
Based on estimates for the next years, ANF will show a very strong growth in Earnings Per Share. The EPS will grow by 24.14% on average per year.
Based on estimates for the next years, ANF will show a quite strong growth in Revenue. The Revenue will grow by 8.35% on average per year.
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.

Deciphering NYSE:ANF's Valuation Rating

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:

76.86% 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 29.48.
Based on the Price/Forward Earnings ratio, ANF is valued a bit cheaper than the industry average as 71.07% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ANF to the average of the S&P500 Index (23.95), we can say ANF is valued slightly cheaper.
70.25% of the companies in the same industry are more expensive than ANF, based on the Enterprise Value to EBITDA ratio.
80.17% of the companies in the same industry are more expensive than ANF, based on the Price/Free Cash Flow ratio.
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 24.14% in the coming years. This may justify a more expensive valuation.

Understanding NYSE:ANF's Health Score

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:ANF was assigned a score of 8 for health:

An Altman-Z score of 6.28 indicates that ANF is not in any danger for bankruptcy at the moment.
ANF has a Altman-Z score of 6.28. This is amongst the best in the industry. ANF outperforms 91.74% of its industry peers.
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.

Profitability Analysis for NYSE:ANF

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:ANF, the assigned 8 is noteworthy for profitability:

The Return On Assets of ANF (16.45%) is better than 95.04% of its industry peers.
ANF has a better Return On Equity (41.58%) than 90.91% of its industry peers.
ANF's Return On Invested Capital of 26.56% is amongst the best of the industry. ANF outperforms 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.
ANF has a better Profit Margin (10.76%) than 94.21% of its industry peers.
ANF's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 14.40%, ANF belongs to the top of the industry, outperforming 93.39% of the companies in the same industry.
In the last couple of years the Operating Margin of ANF has grown nicely.
The Gross Margin of ANF (64.60%) is better than 93.39% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

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.