ABERCROMBIE & FITCH CO-CL A (ANF) Stock Fundamental Analysis
NYSE:ANF - New York Stock Exchange, Inc. - US0028962076 - Common Stock - Currency: USD
ANF gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 120 industry peers in the Specialty Retail industry. ANF scores excellent points on both the profitability and health parts. This is a solid base for a good stock. An interesting combination arises when we look at growth and value: ANF is growing strongly while it also seems undervalued. These ratings would make ANF suitable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
ANF had positive earnings in the past year.
ANF had a positive operating cash flow in the past year.
Of the past 5 years ANF 4 years were profitable.
Of the past 5 years ANF 4 years had a positive operating cash flow.
1.2 Ratios
ANF's Return On Assets of 16.45% is amongst the best of the industry. ANF outperforms 94.87% of its industry peers.
Looking at the Return On Equity, with a value of 41.58%, ANF belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
ANF's Return On Invested Capital of 26.56% is amongst the best of the industry. ANF outperforms 94.02% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ANF is in line with the industry average of 12.30%.
The 3 year average ROIC (12.86%) for ANF is below the current ROIC(26.56%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.45% | ||
| ROE | 41.58% | ||
| ROIC | 26.56% |
ROA(3y)6.69%
ROA(5y)3.55%
ROE(3y)21.31%
ROE(5y)11.1%
ROIC(3y)12.86%
ROIC(5y)8.78%
1.3 Margins
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.
ANF's Profit Margin has improved in the last couple of years.
The Operating Margin of ANF (14.40%) is better than 93.16% of its industry peers.
ANF's Operating Margin has improved in the last couple of years.
The Gross Margin of ANF (64.60%) is better than 93.16% of its industry peers.
ANF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.4% | ||
| PM (TTM) | 10.76% | ||
| GM | 64.6% |
OM growth 3Y106.62%
OM growth 5Y25.52%
PM growth 3YN/A
PM growth 5Y29.87%
GM growth 3Y1.31%
GM growth 5Y0.9%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ANF is creating value.
ANF has more shares outstanding than it did 1 year ago.
ANF has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ANF has been reduced compared to a year ago.
2.2 Solvency
ANF has an Altman-Z score of 5.45. This indicates that ANF is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.45, ANF belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.45 |
ROIC/WACC2.56
WACC10.36%
2.3 Liquidity
A Current Ratio of 1.44 indicates that ANF should not have too much problems paying its short term obligations.
With a Current ratio value of 1.44, ANF perfoms like the industry average, outperforming 54.70% of the companies in the same industry.
ANF has a Quick Ratio of 1.44. This is a bad value and indicates that ANF is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.93, ANF is in the better half of the industry, outperforming 72.65% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 144.79% over the past year.
ANF shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 39.75% yearly.
The Revenue has grown by 19.59% in the past year. This is quite good.
Measured over the past years, ANF shows a small growth in Revenue. The Revenue has been growing by 3.58% on average per year.
EPS 1Y (TTM)144.79%
EPS 3YN/A
EPS 5Y39.75%
EPS Q2Q%36.61%
Revenue 1Y (TTM)19.59%
Revenue growth 3Y11.05%
Revenue growth 5Y3.58%
Sales Q2Q%14.44%
3.2 Future
Based on estimates for the next years, ANF will show a very strong growth in Earnings Per Share. The EPS will grow by 25.17% on average per year.
ANF is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.75% yearly.
EPS Next Y65.03%
EPS Next 2Y32.94%
EPS Next 3Y25.17%
EPS Next 5YN/A
Revenue Next Year15.89%
Revenue Next 2Y11.54%
Revenue Next 3Y8.75%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.90, which indicates a very decent valuation of ANF.
Compared to the rest of the industry, the Price/Earnings ratio of ANF indicates a rather cheap valuation: ANF is cheaper than 90.60% of the companies listed in the same industry.
ANF is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.01, the valuation of ANF can be described as very reasonable.
ANF's Price/Forward Earnings ratio is rather cheap when compared to the industry. ANF is cheaper than 87.18% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. ANF is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 9.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ANF is valued cheaply inside the industry as 85.47% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ANF is valued cheaper than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.21 | ||
| EV/EBITDA | 5.45 |
4.3 Compensation for Growth
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.
PEG (NY)0.15
PEG (5Y)0.25
EPS Next 2Y32.94%
EPS Next 3Y25.17%
5. Dividend
5.1 Amount
No dividends for ANF!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
100.11
-3.04 (-2.95%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners104.38%
Inst Owner Change1.54%
Ins Owners1.58%
Ins Owner Change-3.46%
Market Cap5.04B
Analysts80
Price Target191.15 (90.94%)
Short Float %9.38%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.77%
Min EPS beat(2)11.44%
Max EPS beat(2)22.1%
EPS beat(4)4
Avg EPS beat(4)22.71%
Min EPS beat(4)3.82%
Max EPS beat(4)53.49%
EPS beat(8)7
Avg EPS beat(8)194.36%
EPS beat(12)8
Avg EPS beat(12)2.12%
EPS beat(16)12
Avg EPS beat(16)1024.02%
Revenue beat(2)2
Avg Revenue beat(2)3.45%
Min Revenue beat(2)1.98%
Max Revenue beat(2)4.92%
Revenue beat(4)4
Avg Revenue beat(4)3.55%
Min Revenue beat(4)0.69%
Max Revenue beat(4)6.63%
Revenue beat(8)8
Avg Revenue beat(8)3.92%
Revenue beat(12)9
Avg Revenue beat(12)1.97%
Revenue beat(16)11
Avg Revenue beat(16)2.66%
PT rev (1m)1.49%
PT rev (3m)1.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.85%
EPS NY rev (1m)0.88%
EPS NY rev (3m)-0.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)1.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 9.01 | ||
| P/S | 1.08 | ||
| P/FCF | 9.21 | ||
| P/OCF | 7.23 | ||
| P/B | 4.18 | ||
| P/tB | 4.18 | ||
| EV/EBITDA | 5.45 |
EPS(TTM)10.11
EY10.1%
EPS(NY)11.12
Fwd EY11.1%
FCF(TTM)10.87
FCFY10.86%
OCF(TTM)13.84
OCFY13.83%
SpS92.6
BVpS23.95
TBVpS23.95
PEG (NY)0.15
PEG (5Y)0.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.45% | ||
| ROE | 41.58% | ||
| ROCE | 33.62% | ||
| ROIC | 26.56% | ||
| ROICexc | 42.13% | ||
| ROICexgc | 42.13% | ||
| OM | 14.4% | ||
| PM (TTM) | 10.76% | ||
| GM | 64.6% | ||
| FCFM | 11.74% |
ROA(3y)6.69%
ROA(5y)3.55%
ROE(3y)21.31%
ROE(5y)11.1%
ROIC(3y)12.86%
ROIC(5y)8.78%
ROICexc(3y)22.37%
ROICexc(5y)14.98%
ROICexgc(3y)22.37%
ROICexgc(5y)14.98%
ROCE(3y)16.28%
ROCE(5y)11.12%
ROICexcg growth 3Y139.02%
ROICexcg growth 5Y29.94%
ROICexc growth 3Y139.02%
ROICexc growth 5Y29.94%
OM growth 3Y106.62%
OM growth 5Y25.52%
PM growth 3YN/A
PM growth 5Y29.87%
GM growth 3Y1.31%
GM growth 5Y0.9%
F-Score9
Asset Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 102.67% | ||
| Cap/Sales | 3.21% | ||
| Interest Coverage | 31.51 | ||
| Cash Conversion | 85.3% | ||
| Profit Quality | 109.16% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 5.45 |
F-Score9
WACC10.36%
ROIC/WACC2.56
Cap/Depr(3y)101.23%
Cap/Depr(5y)96.36%
Cap/Sales(3y)3.58%
Cap/Sales(5y)3.92%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)144.79%
EPS 3YN/A
EPS 5Y39.75%
EPS Q2Q%36.61%
EPS Next Y65.03%
EPS Next 2Y32.94%
EPS Next 3Y25.17%
EPS Next 5YN/A
Revenue 1Y (TTM)19.59%
Revenue growth 3Y11.05%
Revenue growth 5Y3.58%
Sales Q2Q%14.44%
Revenue Next Year15.89%
Revenue Next 2Y11.54%
Revenue Next 3Y8.75%
Revenue Next 5YN/A
EBIT growth 1Y178.6%
EBIT growth 3Y129.47%
EBIT growth 5Y30.01%
EBIT Next Year80.22%
EBIT Next 3Y27.45%
EBIT Next 5YN/A
FCF growth 1Y457.67%
FCF growth 3Y17.82%
FCF growth 5Y19.84%
OCF growth 1Y2292.58%
OCF growth 3Y17.3%
OCF growth 5Y13.11%