ABERCROMBIE & FITCH CO-CL A (AFT.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AFT - US0028962076 - Common Stock
80.68 EUR
-3.87 (-4.58%)
We assign a fundamental rating of 7 out of 10 to AFT. AFT was compared to 61 industry peers in the Specialty Retail industry. AFT gets an excellent profitability rating and is at the same time showing great financial health properties. AFT has a bad growth rate and is valued cheaply. These ratings could make AFT a good candidate for value investing.
1. Profitability
1.1 Basic Checks
- AFT had positive earnings in the past year.
- In the past year AFT had a positive cash flow from operations.
- AFT had positive earnings in 4 of the past 5 years.
- Of the past 5 years AFT 4 years had a positive operating cash flow.
1.2 Ratios
- AFT has a better Return On Assets (16.38%) than 96.72% of its industry peers.
- AFT has a better Return On Equity (41.86%) than 91.80% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 25.18%, AFT belongs to the top of the industry, outperforming 96.72% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for AFT is significantly above the industry average of 10.05%.
- The last Return On Invested Capital (25.18%) for AFT is above the 3 year average (15.61%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.38% | ||
| ROE | 41.86% | ||
| ROIC | 25.18% |
ROA(3y)9.43%
ROA(5y)6.76%
ROE(3y)24.83%
ROE(5y)18.83%
ROIC(3y)15.61%
ROIC(5y)12.26%
1.3 Margins
- AFT's Profit Margin of 10.61% is amongst the best of the industry. AFT outperforms 93.44% of its industry peers.
- AFT's Profit Margin has improved in the last couple of years.
- The Operating Margin of AFT (15.53%) is better than 96.72% of its industry peers.
- AFT's Operating Margin has improved in the last couple of years.
- AFT's Gross Margin of 62.71% is amongst the best of the industry. AFT outperforms 91.80% of its industry peers.
- AFT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.53% | ||
| PM (TTM) | 10.61% | ||
| GM | 62.71% |
OM growth 3Y16.83%
OM growth 5Y32.13%
PM growth 3Y17.33%
PM growth 5Y60.11%
GM growth 3Y1%
GM growth 5Y1.56%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AFT is creating value.
- AFT has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, AFT has less shares outstanding
- There is no outstanding debt for AFT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- AFT has an Altman-Z score of 5.34. This indicates that AFT is financially healthy and has little risk of bankruptcy at the moment.
- AFT's Altman-Z score of 5.34 is amongst the best of the industry. AFT outperforms 93.44% of its industry peers.
- There is no outstanding debt for AFT. 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 | 5.34 |
ROIC/WACC2.58
WACC9.76%
2.3 Liquidity
- AFT has a Current Ratio of 1.43. This is a normal value and indicates that AFT is financially healthy and should not expect problems in meeting its short term obligations.
- AFT has a better Current ratio (1.43) than 67.21% of its industry peers.
- AFT has a Quick Ratio of 1.43. This is a bad value and indicates that AFT is not financially healthy enough and could expect problems in meeting its short term obligations.
- AFT has a Quick ratio of 0.86. This is in the better half of the industry: AFT outperforms 73.77% of its industry peers.
- The current and quick ratio evaluation for AFT is rather negative, while it does have 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 | 1.43 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
- The earnings per share for AFT have decreased by -2.67% in the last year.
- AFT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 69.30% yearly.
- Looking at the last year, AFT shows a small growth in Revenue. The Revenue has grown by 7.57% in the last year.
- Measured over the past years, AFT shows a small growth in Revenue. The Revenue has been growing by 6.43% on average per year.
EPS 1Y (TTM)-2.67%
EPS 3Y34.82%
EPS 5Y69.3%
EPS Q2Q%-5.6%
Revenue 1Y (TTM)7.57%
Revenue growth 3Y10.05%
Revenue growth 5Y6.43%
Sales Q2Q%6.75%
3.2 Future
- AFT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.33% yearly.
- AFT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.88% yearly.
EPS Next Y-6.04%
EPS Next 2Y-1.28%
EPS Next 3Y1.33%
EPS Next 5YN/A
Revenue Next Year6.9%
Revenue Next 2Y5.52%
Revenue Next 3Y4.88%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- AFT is valuated reasonably with a Price/Earnings ratio of 9.59.
- 88.52% of the companies in the same industry are more expensive than AFT, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, AFT is valued rather cheaply.
- The Price/Forward Earnings ratio is 9.05, which indicates a very decent valuation of AFT.
- AFT's Price/Forward Earnings ratio is rather cheap when compared to the industry. AFT is cheaper than 81.97% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of AFT to the average of the S&P500 Index (24.26), we can say AFT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.59 | ||
| Fwd PE | 9.05 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AFT is valued cheaply inside the industry as 83.61% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, AFT is valued a bit cheaper than 62.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.89 | ||
| EV/EBITDA | 4.26 |
4.3 Compensation for Growth
- AFT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.14
EPS Next 2Y-1.28%
EPS Next 3Y1.33%
5. Dividend
5.1 Amount
- No dividends for AFT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ABERCROMBIE & FITCH CO-CL A / AFT.DE FAQ
What is the ChartMill fundamental rating of ABERCROMBIE & FITCH CO-CL A (AFT.DE) stock?
ChartMill assigns a fundamental rating of 7 / 10 to AFT.DE.
What is the valuation status of ABERCROMBIE & FITCH CO-CL A (AFT.DE) stock?
ChartMill assigns a valuation rating of 7 / 10 to ABERCROMBIE & FITCH CO-CL A (AFT.DE). This can be considered as Undervalued.
What is the profitability of AFT stock?
ABERCROMBIE & FITCH CO-CL A (AFT.DE) has a profitability rating of 9 / 10.
How financially healthy is ABERCROMBIE & FITCH CO-CL A?
The financial health rating of ABERCROMBIE & FITCH CO-CL A (AFT.DE) is 9 / 10.
How sustainable is the dividend of ABERCROMBIE & FITCH CO-CL A (AFT.DE) stock?
The dividend rating of ABERCROMBIE & FITCH CO-CL A (AFT.DE) is 0 / 10 and the dividend payout ratio is 0%.