Abercrombie & Fitch Co. Fundamental Analysis (NYSE: ANF)
Abercrombie & Fitch Co. (NYSE: ANF) shows strong financial fundamentals with a PE ratio of 11.30, profit margin of 10.04%, and ROE of 39.59%. The company generates $5.4B in annual revenue with moderate year-over-year growth of 6.42%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ANF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentANF demonstrates superior asset utilization.
Valuation Score
ExcellentANF trades at attractive valuation levels.
Growth Score
ModerateANF shows steady but slowing expansion.
Financial Health Score
ExcellentANF maintains a strong and stable balance sheet.
Profitability Score
ModerateANF maintains healthy but balanced margins.
Key Financial Metrics
Is ANF Expensive or Cheap?
P/E Ratio
ANF trades at 11.30 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ANF's PEG of 1.28 indicates fair valuation.
Price to Book
The market values Abercrombie & Fitch Co. at 4.34 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.02 times EBITDA. This is generally considered low.
How Well Does ANF Make Money?
Net Profit Margin
For every $100 in sales, Abercrombie & Fitch Co. keeps $10.04 as profit after all expenses.
Operating Margin
Core operations generate 13.66 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $39.59 in profit for every $100 of shareholder equity.
ROA
Abercrombie & Fitch Co. generates $14.91 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Abercrombie & Fitch Co. produces operating cash flow of $832.10M, showing steady but balanced cash generation.
Free Cash Flow
Abercrombie & Fitch Co. generates strong free cash flow of $575.07M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $12.94 in free cash annually.
FCF Yield
ANF converts 9.42% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.30
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.34
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.12
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.95
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.41
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.40
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.29
vs 25 benchmark
How ANF Stacks Against Its Sector Peers
| Metric | ANF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.30 | 23.74 | Better (Cheaper) |
| ROE | 39.59% | 967.00% | Weak |
| Net Margin | 10.04% | -3005.00% (disorted) | Strong |
| Debt/Equity | 0.95 | 0.59 | Weak (High Leverage) |
| Current Ratio | 1.41 | 2.33 | Neutral |
| ROA | 14.91% | 324.00% | Weak |
ANF outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Abercrombie & Fitch Co.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
122.74%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
687.70%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
102.13%
Industry Style: Cyclical, Growth, Discretionary
High Growth