ABERCROMBIE & FITCH CO-CL A (NYSE:ANF) is showing decent growth, but is still valued reasonably.

Our stock screener has singled out ABERCROMBIE & FITCH CO-CL A (NYSE:ANF) as an attractive growth opportunity. NYSE:ANF is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

Analyzing Growth Metrics

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:ANF boasts 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.
• ANF shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 39.75% yearly.
• ANF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.59%.
• ANF is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.17% yearly.
• Based on estimates for the next years, ANF will show a quite strong growth in Revenue. The Revenue will grow by 8.75% 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.

Valuation Assessment of NYSE:ANF

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:ANF has achieved a 9 out of 10:

• Based on the Price/Earnings ratio of 9.57, the valuation of ANF can be described as reasonable.
• 88.98% of the companies in the same industry are more expensive than ANF, based on the Price/Earnings ratio.
• Compared to an average S&P500 Price/Earnings ratio of 29.75, ANF is valued rather cheaply.
• With a Price/Forward Earnings ratio of 8.70, the valuation of ANF can be described as very reasonable.
• 85.59% of the companies in the same industry are more expensive than ANF, based on the Price/Forward Earnings ratio.
• Compared to an average S&P500 Price/Forward Earnings ratio of 22.44, ANF is valued rather cheaply.
• Based on the Enterprise Value to EBITDA ratio, ANF is valued cheaply inside the industry as 84.75% of the companies are valued more expensively.
• ANF's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ANF is cheaper than 83.90% 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 25.17% in the coming years. This may justify a more expensive valuation.

Health Analysis for NYSE:ANF

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:ANF has earned a 8 out of 10:

• An Altman-Z score of 5.35 indicates that ANF is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 5.35, ANF belongs to the best of the industry, outperforming 90.68% of the companies in the same industry.
• 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 Quick ratio of 0.93. This is in the better half of the industry: ANF outperforms 72.03% 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.

Profitability Insights: 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 94.92% of its industry peers.
• The Return On Equity of ANF (41.58%) is better than 92.37% of its industry peers.
• With an excellent Return On Invested Capital value of 26.56%, ANF belongs to the best of the industry, outperforming 94.07% 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.
• The Profit Margin of ANF (10.76%) is better than 94.07% of its industry peers.
• ANF's Profit Margin has improved in the last couple of years.
• ANF's Operating Margin of 14.40% is amongst the best of the industry. ANF outperforms 93.22% of its industry peers.
• In the last couple of years the Operating Margin of ANF has grown nicely.
• ANF has a better Gross Margin (64.60%) than 93.22% of its industry peers.

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

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

Keep in mind

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.