ANF  Abercrombie & Fitch Company

Exchange

NYSE

Sector

Consumer Services

Industry

Clothing/Shoe/Accessory Stores

Market Cap.

932.79M

Vuru Grade

50.50/100

Current Price

$13.70
+0.30 (+2.24%)

Growth Price

$21.32
Undervalued by 55.65%

Stability Price

$48.92
Undervalued by 257.10%

Company Metrics

  • P/E 227.93
  • P/S 0.28
  • P/B 0.79
  • EPS -0.3
  • Cash ROIC 9.38%
  • Cash Ratio 1.13
  • Dividend 0.8 / 6.13%
  • Avg. Vol. 2.96M
  • Shares 68.09M
  • Market Cap. 932.79M

Company Description

Abercrombie & Fitch Co., through its subsidiaries, operates as a specialty retailer of casual apparel for men, women, and kids. The company sells casual sportswear apparel, including knit and woven shirts, graphic t-shirts, fleece, jeans and woven pants, shorts, sweaters, and outerwear; personal care products; and accessories under the Abercrombie & Fitch, abercrombie kids, and Hollister brands. I... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Abercrombie & Fitch Puts Its Clothes Back On
Bloomberg - Oct 19, 2017
After years of declining sales, Abercrombie & Fitch Co. is reinventing its namesake brand and shunning the exclusionary preppy stereotypes that made it a powerhouse of teen clothing.
Charting A Bullish Abercrombie & Fitch Co. - Seeking Alpha
A Glimpse Into Insider Trading And Ownership At Abercrombie & Fitch Co. (ANF) - Economic News
BRIEF-Abercrombie & Fitch Co enters second amendment to credit agreement
Reuters - 23 hours ago
Abercrombie & Fitch Co - ‍as of Oct. 19, unit of co entered second amendment to credit agreement. * Abercrombie & Fitch Co - ABL ‍second amendment amends credit agreement, dated as of Aug. 7, 2014​. * Abercrombie & Fitch - ‍second amendment amends ...
Abercrombie & Fitch Company (ANF) Plunges 5.75% on October 09
Equities.com - Oct 9, 2017
Abercrombie & Fitch Company (ANF) had a rough trading day for Monday October 09 as shares tumbled 5.75%, or a loss of $-0.83 per share, to close at $13.60.
Abercrombie & Fitch Co. (NYSE:ANF) Overpriced or Underpriced? - NY Stock News
Is It Overvalued? Look at the P/S Ratio: Abercrombie & Fitch Co. (ANF ... - AllStockNews
Today Analysts Focus on Abercrombie & Fitch Co. (ANF), Chevron Corporation (CVX)
StockNewsJournal - Oct 13, 2017
ROI deals with the invested cash in the company and the return the investor realize on that money based on the net profit of the business.
Stock's Stunning Activities: Abercrombie & Fitch Co. (ANF) - FactsReporter
What's in Abercrombie & Fitch Company (NYSE:ANF) After Rise in Shorted Shares? - WeeklyHub
Earnings Clues on Omega Protein Corporation (OME), Abercrombie & Fitch Co ...
StockNewsJournal - Oct 11, 2017
Abercrombie & Fitch Co. (NYSE:ANF), maintained return on investment for the last twelve months at -, higher than what Reuters data shows regarding industry's average.
The Zacks Analyst Blog Highlights: L Brands, Abercrombie & Fitch, Zumiez, Gap ...
Nasdaq - Oct 11, 2017
Abercrombie & Fitch Co. (NYSE: ANF - Free Report ), a specialty retailer of premium, high-quality casual apparel for men, women, and kids is a solid bet.
Why to Keeping Eye on Abercrombie & Fitch Co. (ANF), OneMain Holdings, Inc. (OMF)?
StockNewsJournal - Oct 10, 2017
ROI deals with the invested cash in the company and the return the investor realize on that money based on the net profit of the business.
Abercrombie & Fitch Co. (ANF): How Do the Books Stack Up? - StockNewsGazette
Abercrombie & Fitch Company (ANF) Receives $12.30 Average Price Target from ... - StockNewsTimes
Analysts focus on Hold position: Abercrombie & Fitch Co. (ANF)
Street Observer (press release) - 5 hours ago
Abercrombie & Fitch Co. (ANF) stock price traded with surging change along with the volume 1.29 million shares in Thursday trading session.
Dissecting the Investment Cases for Abercrombie & Fitch Co. (ANF) and J.Jill ...
Economic News - Sep 22, 2017
Abercrombie & Fitch Co. (NYSE:ANF) and J.Jill, Inc. (NYSE:JILL) are both Services companies that recently hit new low. This price action has ruffled more than a few feathers in the investment community, but is one a better investment than the other?
Technical Reports on Apparel Stores Equities -- Urban Outfitters, Abercrombie ...
PR Newswire (press release) - Oct 3, 2017
Four Apparel Stores stocks have been lined up by DailyStockTracker.com for review this morning: Urban Outfitters Inc. (NASDAQ: URBN), Abercrombie & Fitch Co. (NYSE: ANF), Chico's FAS Inc. (NYSE: CHS), and DSW Inc. (NYSE: DSW). Industries in the ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for ANF to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate ANF's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$13.70 Current Price

$21.32 Growth Price (DCF)

Undervalued by 55.65%


Growth Rate Assumed by Market: -500.00%


Future Free Cash Flow Growth Rate: -7.9%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$48.92 Stability Price (EPV)

Undervalued by 257.10%


Discount Rate: 15.0%

$1.28 NCA Price

Overvalued by 90.68%

$33.48 Book Price

Undervalued by 144.40%


Poor Cash Return on Invested Capital over the past 5 years

ANF has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

ANF has only created $9.38 of cash for every $100 invested.
Figures in USD. Fiscal year ends in January
20132014201520162017
Free Cash Flow 344.31M 11.57M 137.86M 166.74M 43.75M
divided by
Invested Capital 1.65B 1.68B 1.50B 1.31B 1.26B
Cash ROIC 20.83% 0.69% 9.20% 12.73% 3.46%

Poor Return on Equity over the past 5 years

ANF has shown an inability to deliver strong results for shareholders. This could be due to poor management, ANF operating in a highly competitive industry, or having a weak business in general.

ANF has only generated $4.71 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in January
20132014201520162017
Net Income 237.01M 54.63M 51.82M 38.56M 7.72M
divided by
Stockholders' Equity 1.82B 1.73B 1.39B 1.29B 1.24B
Return on Equity 13.03% 3.16% 3.73% 2.99% 0.62%

Excellent Business Performance over the past 10 years

ANF has been able to maintain profitability in good times and bad. This could mean ANF has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

ANF has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in January
2008200920102011201220132014201520162017
Free Cash Flow 414.48M 123.23M 226.73M 230.85M 46.62M 344.31M 11.57M 137.86M 166.74M 43.75M

Strong Balance Sheet

ANF is financially strong with Current Assets covering Total Liabilities. It's in a fairly liquid position and dependent on the amount and saleability of any inventory; it may have the financial security to survive an economic downturn.
Figures in USD. Fiscal year ends in January
2008200920102011201220132014201520162017
Cash 648.53M 522.12M 712.47M 826.35M 668.15M 643.51M 600.12M 520.71M 588.58M 547.19M
Current Assets 1.14B 1.08B 1.24B 1.43B 1.49B 1.31B 1.32B 1.16B 1.18B 1.14B
Total Assets 2.57B 2.85B 2.82B 2.95B 3.05B 2.99B 2.85B 2.51B 2.43B 2.30B
Current Liabilities 543.11M 449.80M 449.37M 558.85M 705.35M 690.80M 568.22M 485.96M 534.70M 486.00M
Total Liabilities 949.29M 1.00B 993.95M 1.06B 1.19B 1.17B 1.12B 1.12B 1.14B 1.05B
Stockholder' Equity 1.62B 1.85B 1.83B 1.89B 1.86B 1.82B 1.73B 1.39B 1.29B 1.24B
Current Ratio 2.10 2.41 2.75 2.56 2.11 1.89 2.32 2.40 2.20 2.34
TL-to-TA 0.37 0.35 0.35 0.36 0.39 0.39 0.39 0.45 0.47 0.46

Low or No Reinvestment of Profits over the past 10 years

ANF has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to ANF operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in January
2008200920102011201220132014201520162017
Retained Earnings 2.05B 2.24B 2.18B 2.27B 2.32B 2.57B 2.56B 2.55B 2.53B 2.47B
Retained Earnings Growth - 9.43% -2.73% 4.06% 2.12% 10.63% -0.43% -0.22% -0.80% -2.19%

Highly Competitive Industry over the past 10 years

It's likely that ANF is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely ANF invests heavily in R&D and Sales, General & Administrative expenses.

Only $3.71 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in January
2008200920102011201220132014201520162017
Net Income 475.70M 272.26M 254,000.00 150.28M 127.66M 237.01M 54.63M 51.82M 38.56M 7.72M
divided by
Revenue 3.75B 3.54B 2.93B 3.47B 4.16B 4.51B 4.12B 3.74B 3.52B 3.33B
Net Profit Margin 12.69% 7.69% 0.01% 4.33% 3.07% 5.25% 1.33% 1.38% 1.10% 0.23%

Strong Pricing Power over the past 10 years

ANF has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$67.09 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in January
2008200920102011201220132014201520162017
Gross Profit 2.51B 2.36B 1.88B 2.21B 4.16B 2.82B 2.58B 2.31B 2.16B 2.03B
divided by
Revenue 3.75B 3.54B 2.93B 3.47B 4.16B 4.51B 4.12B 3.74B 3.52B 3.33B
Gross Margin 66.97% 66.71% 64.32% 63.77% 100.00% 62.44% 62.56% 61.79% 61.32% 60.98%

High Capital Intensity over the past 10 years

ANF spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

7,263.66% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in January
2008200920102011201220132014201520162017
Capital Expenditure 403.35M 367.60M 175.47M 160.94M 318.60M 339.86M 163.92M 174.62M 143.20M 140.84M
divided by
Net Income 475.70M 272.26M 254,000.00 150.28M 127.66M 237.01M 54.63M 51.82M 38.56M 7.72M
Capital Expenditure Ratio 84.79% 135.02% 69,083.46% 107.09% 249.57% 143.40% 300.07% 336.98% 371.38% 1,824.88%

Very Strong Dividend History over the past 10 years

ANF has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests ANF is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in January
2008200920102011201220132014201520162017
Dividend Paid 61.33M 60.77M 61.50M 61.66M 60.96M 57.63M 61.92M 57.36M 55.15M 54.07M
divided by
Shares Outstanding 91.52M 89.29M 88.61M 89.85M 89.54M 83.18M 78.67M 72.94M 69.42M 68.28M
Dividend Paid Per Share 0.67 0.68 0.69 0.69 0.68 0.69 0.79 0.79 0.79 0.79
Price at Year End 20.95 34.16 57.19 48.66 45.76 33.19 28.76 27.46 12.00 13.83
Dividend Yield 3.20% 1.99% 1.21% 1.41% 1.49% 2.09% 2.74% 2.86% 6.62% 5.73%

Strong History of Stock Buybacks over the past 10 years

ANF has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in January
2008200920102011201220132014201520162017
Shares Outstanding 91.52M 89.29M 88.61M 89.85M 89.54M 83.18M 78.67M 72.94M 69.42M 68.28M
Stock Bought Back - 2.50% 0.77% -1.38% 0.35% 7.65% 5.73% 7.85% 5.07% 1.66%
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