In a market where value is scarce, NYSE:ANF offers a refreshing opportunity with its solid fundamentals.

Last update: Jan 6, 2025

Take a closer look at ABERCROMBIE & FITCH CO-CL A (NYSE:ANF), a remarkable value stock uncovered by our stock screener. NYSE:ANF excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

Valuation Analysis for NYSE:ANF

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:

Based on the Price/Earnings ratio, ANF is valued a bit cheaper than the industry average as 74.36% of the companies are valued more expensively.
ANF's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.48.
Based on the Price/Forward Earnings ratio, ANF is valued a bit cheaper than 72.65% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.73. ANF is valued slightly cheaper when compared to this.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ANF indicates a somewhat cheap valuation: ANF is cheaper than 64.96% of the companies listed in the same industry.
ANF's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ANF is cheaper than 78.63% 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.
ANF's earnings are expected to grow with 25.74% in the coming years. This may justify a more expensive valuation.

Assessing Profitability 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 has a better Return On Assets (16.45%) than 94.87% of its industry peers.
ANF has a Return On Equity of 41.58%. This is amongst the best in the industry. ANF outperforms 92.31% of its industry peers.
ANF's Return On Invested Capital of 26.56% is amongst the best of the industry. ANF outperforms 94.02% 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.
Looking at the Profit Margin, with a value of 10.76%, ANF belongs to the top of the industry, outperforming 94.02% of the companies in the same industry.
In the last couple of years the Profit Margin of ANF has grown nicely.
Looking at the Operating Margin, with a value of 14.40%, ANF belongs to the top of the industry, outperforming 93.16% of the companies in the same industry.
In the last couple of years the Operating Margin of ANF has grown nicely.
ANF has a better Gross Margin (64.60%) than 93.16% of its industry peers.

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 6.37 indicates that ANF is not in any danger for bankruptcy at the moment.
The Altman-Z score of ANF (6.37) is better than 93.16% 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.
ANF has a better Quick ratio (0.93) than 74.36% 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.

A Closer Look at 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:

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.
Based on estimates for the next years, ANF will show a very strong growth in Earnings Per Share. The EPS will grow by 25.74% on average per year.
ANF is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.64% yearly.
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.