NYSE:ANF is showing decent growth, but is still valued reasonably.

Last update: Jan 21, 2025

Take a closer look at ABERCROMBIE & FITCH CO-CL A (NYSE:ANF), an affordable growth stock uncovered by our stock screener. NYSE:ANF boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

How do we evaluate the Growth for NYSE:ANF?

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:ANF scores a 7 out of 10:

The Earnings Per Share has grown by an impressive 144.79% over the past year.
The Earnings Per Share has been growing by 39.75% on average over the past years. This is a very strong growth
ANF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.59%.
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.
The Revenue is expected to grow by 8.56% on average over the next years. This is quite good.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Valuation Examination for NYSE:ANF

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:ANF, the assigned 9 reflects its valuation:

ANF's Price/Earnings ratio is rather cheap when compared to the industry. ANF is cheaper than 80.17% of the companies in the same industry.
ANF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.94.
A Price/Forward Earnings ratio of 11.88 indicates a reasonable valuation of ANF.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ANF indicates a somewhat cheap valuation: ANF is cheaper than 76.72% of the companies listed in the same industry.
ANF is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.11, which is the current average of the S&P500 Index.
ANF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ANF is cheaper than 81.90% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ANF indicates a rather cheap valuation: ANF is cheaper than 83.62% of the companies listed 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.

Exploring NYSE:ANF's Health

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 5.90 indicates that ANF is not in any danger for bankruptcy at the moment.
ANF has a Altman-Z score of 5.90. This is amongst the best in the industry. ANF outperforms 90.52% 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.
Looking at the Quick ratio, with a value of 0.93, ANF is in the better half of the industry, outperforming 74.14% 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's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:ANF, the assigned 8 is a significant indicator of profitability:

ANF has a better Return On Assets (16.45%) than 94.83% of its industry peers.
ANF has a better Return On Equity (41.58%) than 92.24% of its industry peers.
ANF has a Return On Invested Capital of 26.56%. This is amongst the best in the industry. ANF outperforms 93.97% of its industry peers.
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.
ANF has a Profit Margin of 10.76%. This is amongst the best in the industry. ANF outperforms 93.97% of its industry peers.
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 93.10% of the companies in the same industry.
ANF's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 64.60%, ANF belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.

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

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.