ABERCROMBIE & FITCH CO-CL A (NYSE:ANF) is an undervalued gem with solid fundamentals.

Discover ABERCROMBIE & FITCH CO-CL A (NYSE:ANF)—an undervalued stock our stock screener has picked out. ANF demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

What does the Valuation looks like for 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. ANF scores a 8 out of 10:

• A Price/Earnings ratio of 6.50 indicates a rather cheap 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 91.74% of the companies listed in the same industry.
• ANF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.29.
• With a Price/Forward Earnings ratio of 6.37, the valuation of ANF can be described as very cheap.
• Based on the Price/Forward Earnings ratio, ANF is valued cheaper than 91.74% of the companies in the same industry.
• ANF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.42.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ANF indicates a rather cheap valuation: ANF is cheaper than 95.04% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, ANF is valued cheaply inside the industry as 88.43% of the companies are valued more expensively.
• ANF has an outstanding profitability rating, which may justify a higher PE ratio.

Profitability Examination for 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 ANF, the assigned 9 is noteworthy for profitability:

• ANF's Return On Assets of 17.16% is amongst the best of the industry. ANF outperforms 95.04% of its industry peers.
• The Return On Equity of ANF (42.39%) is better than 91.74% of its industry peers.
• The Return On Invested Capital of ANF (24.92%) is better than 91.74% of its industry peers.
• ANF had an Average Return On Invested Capital over the past 3 years of 15.61%. This is above the industry average of 13.05%.
• The last Return On Invested Capital (24.92%) for ANF is above the 3 year average (15.61%), which is a sign of increasing profitability.
• ANF has a Profit Margin of 11.44%. This is amongst the best in the industry. ANF outperforms 93.39% of its industry peers.
• In the last couple of years the Profit Margin of ANF has grown nicely.
• Looking at the Operating Margin, with a value of 15.20%, ANF belongs to the top of the industry, outperforming 92.56% of the companies in the same industry.
• In the last couple of years the Operating Margin of ANF has grown nicely.
• The Gross Margin of ANF (64.15%) is better than 92.56% of its industry peers.
• ANF's Gross Margin has improved in the last couple of years.

Health Assessment of ANF

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. ANF has received a 9 out of 10:

• An Altman-Z score of 4.82 indicates that ANF is not in any danger for bankruptcy at the moment.
• ANF has a better Altman-Z score (4.82) than 88.43% 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.
• The Quick ratio of ANF (0.97) is better than 72.73% 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.

Evaluating Growth: 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. ANF has achieved a 4 out of 10:

• ANF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 70.27%, which is quite impressive.
• Measured over the past years, ANF shows a very strong growth in Earnings Per Share. The EPS has been growing by 69.30% on average per year.
• Looking at the last year, ANF shows a quite strong growth in Revenue. The Revenue has grown by 15.60% in the last year.

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.

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.