For those who appreciate value investing, NYSE:ANF is a compelling option with its solid fundamentals.

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.

Evaluating Valuation: NYSE:ANF

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:ANF has earned a 8 for valuation:

• Compared to the rest of the industry, the Price/Earnings ratio of ANF indicates a somewhat cheap valuation: ANF is cheaper than 79.34% of the companies listed in the same industry.
• ANF is valuated cheaply when we compare the Price/Earnings ratio to 29.00, which is the current average of the S&P500 Index.
• 75.21% of the companies in the same industry are more expensive than ANF, based on the Price/Forward Earnings ratio.
• ANF's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.60.
• Based on the Enterprise Value to EBITDA ratio, ANF is valued a bit cheaper than the industry average as 74.38% of the companies are valued more expensively.
• Based on the Price/Free Cash Flow ratio, ANF is valued cheaper than 80.17% 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.
• The excellent profitability rating of ANF may justify a higher PE ratio.
• A more expensive valuation may be justified as ANF's earnings are expected to grow with 25.74% in the coming years.

Profitability Analysis for 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.
• The Return On Equity of ANF (41.58%) is better than 90.91% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 26.56%, ANF belongs to the top of the industry, outperforming 94.21% of the companies in the same industry.
• The last Return On Invested Capital (26.56%) for ANF is above the 3 year average (12.86%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 10.76%, ANF belongs to the top of the industry, outperforming 94.21% of the companies in the same industry.
• 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's Gross Margin of 64.60% is amongst the best of the industry. ANF outperforms 93.39% of its industry peers.

Health Assessment of NYSE:ANF

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:ANF, the assigned 8 reflects its health status:

• An Altman-Z score of 6.13 indicates that ANF is not in any danger for bankruptcy at the moment.
• ANF has a better Altman-Z score (6.13) than 90.91% 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.
• ANF's Quick ratio of 0.93 is fine compared to the rest of the industry. ANF outperforms 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.

A Closer Look at Growth for 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:

• ANF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 144.79%, 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
• Looking at the last year, ANF shows a quite strong growth in Revenue. The Revenue has grown by 19.59% in the last year.
• The Earnings Per Share is expected to grow by 25.74% on average over the next years. This is a very strong growth
• Based on estimates for the next years, ANF will show a quite strong growth in Revenue. The Revenue will grow by 8.64% on average per year.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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

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.