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Despite its impressive fundamentals, NYSE:ANF remains undervalued.

By Mill Chart

Last update: Jan 2, 2024

Our stock screening tool has pinpointed ABERCROMBIE & FITCH CO-CL A (NYSE:ANF) as an undervalued stock option. NYSE:ANF retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

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 7 reflects its valuation:

  • Based on the Price/Earnings ratio, ANF is valued a bit cheaper than 62.79% of the companies in the same industry.
  • Based on the Price/Forward Earnings ratio, ANF is valued a bit cheaper than the industry average as 65.12% of the companies are valued more expensively.
  • ANF's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.99.
  • Based on the Enterprise Value to EBITDA ratio, ANF is valued a bit cheaper than 64.34% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, ANF is valued cheaper than 81.40% 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.
  • ANF has a very decent profitability rating, which may justify a higher PE ratio.
  • ANF's earnings are expected to grow with 190.73% in the coming years. This may justify a more expensive valuation.

Looking at the Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:ANF was assigned a score of 6 for profitability:

  • ANF's Return On Assets of 7.18% is fine compared to the rest of the industry. ANF outperforms 72.87% of its industry peers.
  • ANF has a Return On Equity of 24.02%. This is in the better half of the industry: ANF outperforms 76.74% of its industry peers.
  • ANF has a Return On Invested Capital of 15.12%. This is amongst the best in the industry. ANF outperforms 82.95% of its industry peers.
  • The 3 year average ROIC (6.85%) for ANF is below the current ROIC(15.12%), indicating increased profibility in the last year.
  • ANF has a better Profit Margin (5.16%) than 74.42% of its industry peers.
  • Looking at the Operating Margin, with a value of 8.89%, ANF is in the better half of the industry, outperforming 79.84% of the companies in the same industry.
  • With an excellent Gross Margin value of 60.79%, ANF belongs to the best of the industry, outperforming 94.57% of the companies in the same industry.

Unpacking NYSE:ANF's Health Rating

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:ANF was assigned a score of 7 for health:

  • An Altman-Z score of 4.48 indicates that ANF is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 4.48, ANF belongs to the top of the industry, outperforming 86.05% of the companies in the same industry.
  • ANF has a debt to FCF ratio of 0.52. This is a very positive value and a sign of high solvency as it would only need 0.52 years to pay back of all of its debts.
  • The Debt to FCF ratio of ANF (0.52) is better than 82.17% of its industry peers.
  • ANF has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
  • ANF has a better Debt to Equity ratio (0.29) than 62.02% of its industry peers.
  • ANF's Quick ratio of 0.82 is fine compared to the rest of the industry. ANF outperforms 66.67% of its industry peers.

Understanding NYSE:ANF's Growth Score

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 6 out of 10:

  • The Earnings Per Share has grown by an impressive 612.07% over the past year.
  • ANF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.06%.
  • ANF is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 190.73% yearly.
  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

More Decent Value stocks can be found in our Decent Value screener.

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

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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ABERCROMBIE & FITCH CO-CL A

NYSE:ANF (5/20/2024, 7:19:06 PM)

After market: 144.85 +0.01 (+0.01%)

144.84

+5.23 (+3.75%)

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