ABERCROMBIE & FITCH CO-CL A (NYSE:ANF) was identified by our Decent Value stock screener as a candidate with solid fundamentals and an attractive valuation. The company operates in the specialty retail sector, offering apparel and accessories under brands like Abercrombie & Fitch and Hollister.
Valuation
ANF stands out with a Valuation Rating of 8/10, indicating it may be priced below its intrinsic value. Key points:
- P/E ratio of 7.38, significantly lower than the industry average of 49.87 and the S&P 500’s 26.32.
- Forward P/E of 6.93, suggesting continued undervaluation.
- Enterprise Value/EBITDA and Price/Free Cash Flow ratios are also favorable, placing ANF cheaper than over 90% of its peers.
Financial Health
The company earns a Health Rating of 9/10, reflecting strong financial stability:
- No outstanding debt, reducing financial risk.
- Altman-Z score of 4.90, well above the safe threshold.
- Share count has decreased over the past five years, indicating disciplined capital management.
Profitability
ANF scores a Profitability Rating of 9/10, with industry-leading margins:
- Return on Assets (17.16%) and Return on Equity (42.39%) rank in the top 5% of peers.
- Operating Margin of 15.20% and Gross Margin of 64.15% show efficient operations.
- Consistent cash flow generation over the past five years.
Growth
While growth is more moderate, ANF still holds a Growth Rating of 5/10:
- EPS grew 26.37% YoY, with a strong three-year average of 69.30%.
- Revenue increased by 12.54% last year, though future growth estimates are modest (~3.5% annually).
For a deeper look, review the full fundamental analysis report for ANF.
Our Decent Value screener lists more stocks with strong valuations and fundamentals.
Disclaimer
This is not investing advice. Always conduct your own research before making investment decisions.
