ANF  Abercrombie & Fitch Company

Exchange

NYSE

Sector

Consumer Services

Industry

Clothing/Shoe/Accessory Stores

Market Cap.

825.62M

Vuru Grade

58.36/100

Current Price

$12.20
+0.13 (+1.08%)

Growth Price

$29.17
Undervalued by 139.10%

Stability Price

$93.41
Undervalued by 665.63%

Company Metrics

  • P/E 64.89
  • P/S 0.24
  • P/B 0.67
  • EPS 0.19
  • Cash ROIC 9.25%
  • Cash Ratio 1.10
  • Dividend 0.80 / 6.63 %
  • Avg. Vol. 3.56M
  • Shares 67.67M
  • Market Cap. 825.62M

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 CO. REPORTS DECLARATION OF QUARTERLY CASH DIVIDEND OF $0 ...
Yahoo Finance - Feb 16, 2017
New Albany, Ohio, February 16, 2017: Abercrombie & Fitch Co. (ANF) today reported that on February 15, 2017, the Board of Directors declared a quarterly cash dividend of $0.20 per share on the Class A Common Stock of Abercrombie & Fitch Co., payable ...
The Abercrombie & Fitch Company (ANF) Lowered to Hold at the Jefferies Group - DailyQuint
ABERCROMBIE & FITCH CO. (NYSE:ANF) Files An 8-K Other Events - Market Exclusive
Why Abercrombie & Fitch Co. Stock Was Cut in Half in 2016
Motley Fool - Jan 26, 2017
Abercrombie & Fitch Co. (NYSE:ANF) stock was crushed in 2016. Shares of the fashion retail brand dropped more than 54% throughout the year, according to data provided by S&P Global Market Intelligence, after the company posted multiple quarters of ...
WILL A. SMITH TO JOIN ABERCROMBIE & FITCH CO. AS CHIEF MARKETING OFFICER - Yahoo Finance
Struggling Abercrombie cuts 150 jobs at New Albany HQ - Columbus Business First
Abercrombie Plunges After Tourism Pullback Weighs on Results
Bloomberg - Aug 30, 2016
Abercrombie & Fitch Co. tumbled the most in three years after slow sales at flagship locations weighed on its latest results and outlook, sparking concerns that its turnaround is sputtering.
Why Abercrombie & Fitch Co. Stock Got Shredded Today - Motley Fool
So Much for Abercrombie & Fitch's Comeback - Fortune
Why Abercrombie & Fitch Co. Stock Dropped Today
Motley Fool - Nov 18, 2016
Abercrombie & Fitch Co. (NYSE:ANF) stock was getting ripped apart today after the teen apparel retailer turned in another disappointing earnings report.
More store closures may be ahead for Abercrombie & Fitch - CNBC
Abercrombie & Fitch Co. (ANF) Stock Is Beyond All Hope - Investorplace.com
Why Abercrombie & Fitch Co. Dropped 10% Last Month
Motley Fool - Oct 7, 2016
Shares of Abercrombie & Fitch Co. (NYSE:ANF) slipped again last month, falling 10% according to data from S&P Global Market Intelligence.
How Abercrombie & Fitch Co. Has Changed in the Last 5 Years
Motley Fool - Oct 3, 2016
You might not even recognize an Abercrombie & Fitch store these days if you haven't been in one in years. Gone are the bare-chested models, dark corners, shuttered storefronts, and heavily performed aisles.
Why Abercrombie & Fitch Co. Stock Lost 14% Last Month
Motley Fool - Sep 6, 2016
Shares of Abercrombie & Fitch Co. (NYSE:ANF) took a hit last month, finishing down 14% according to data from S&P Global Market Intelligence.
Abercrombie & Fitch's attempts to rebrand have totally backfired - Business Insider
Abercrombie & Fitch downgraded on stalled turnaround, but Nike is tops for 2017
MarketWatch - Jan 3, 2017
For Abercrombie & Fitch Co., DSW Inc. and Steve Madden Ltd., 2017 is off to a rough start. All three companies were downgraded to hold from buy and saw their price targets cut at Jefferies.
Analyst Downgrades: Opko Health Inc., Abercrombie & Fitch Co., and Amazon.com ... - Schaeffers Research (blog)
Smells Like Teen Retail Deterioration: Abercrombie & Fitch Downgraded By ... - Benzinga
BRIEF-Reg-Abercrombie & fitch co. Reports third quarter results
Reuters - Nov 18, 2016
To access the newsletter, click on the link: http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_02102017.pdf If you would like to receive this newsletter via email, please register at: https://forms.
Abercrombie & Fitch's 1st new-look store debuting this month in Columbus
Columbus Business First - Feb 6, 2017
“It is important that our stores reflect what the Abercrombie & Fitch brand is today so we've created a new space for our customers that is warm, inviting, inclusive and open,” Brand President Stacia Anderson said in a press release.
Why New Abercrombie & Fitch Store Concept Is Likely Not Aggressive Enough - 24/7 Wall St.
Stock Returns: Guess' Inc (NYSE:GES) is Beating Abercrombie & Fitch Co. (NYSE:ANF) - CML News
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.

$12.20 Current Price

$29.17 Growth Price (DCF)

Undervalued by 139.10%


Growth Rate Assumed by Market: -500.00%


Future Free Cash Flow Growth Rate: -12.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$93.41 Stability Price (EPV)

Undervalued by 665.63%


Discount Rate: 15.0%

$0.55 NCA Price

Overvalued by 95.52%

$40.05 Book Price

Undervalued by 228.27%


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 $9.25 of cash for every $100 invested.
Figures in USD. Fiscal year ends in January
20122013201420152016
Free Cash Flow 46.62M 344.31M 11.57M 137.86M 166.74M
divided by
Invested Capital 1.67B 1.65B 1.68B 1.50B 1.31B
Cash ROIC 2.78% 20.83% 0.69% 9.20% 12.73%

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 $5.95 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in January
20122013201420152016
Net Income 127.66M 237.01M 54.63M 51.82M 38.56M
divided by
Stockholders' Equity 1.86B 1.82B 1.73B 1.39B 1.29B
Return on Equity 6.85% 13.03% 3.16% 3.73% 2.99%

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
2007200820092010201120122013201420152016
Free Cash Flow 178.70M 414.48M 123.23M 226.73M 230.85M 46.62M 344.31M 11.57M 137.86M 166.74M

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
2007200820092010201120122013201420152016
Cash 529.75M 648.53M 522.12M 712.47M 826.35M 668.15M 643.51M 600.12M 520.71M 588.58M
Current Assets 1.09B 1.14B 1.08B 1.24B 1.43B 1.49B 1.31B 1.32B 1.16B 1.18B
Total Assets 2.25B 2.57B 2.85B 2.82B 2.95B 3.05B 2.99B 2.85B 2.51B 2.43B
Current Liabilities 510.63M 543.11M 449.80M 449.37M 558.85M 705.35M 690.80M 568.22M 485.96M 534.70M
Total Liabilities 842.77M 949.29M 1.00B 993.95M 1.06B 1.19B 1.17B 1.12B 1.12B 1.14B
Stockholder' Equity 1.41B 1.62B 1.85B 1.83B 1.89B 1.86B 1.82B 1.73B 1.39B 1.29B
Current Ratio 2.14 2.10 2.41 2.75 2.56 2.11 1.89 2.32 2.40 2.20
TL-to-TA 0.37 0.37 0.35 0.35 0.36 0.39 0.39 0.39 0.45 0.47

Consistent Reinvestment of Profits over the past 10 years

ANF has consistently retained profits. This may put ANF in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, ANF can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Retained Earnings 1.65B 2.05B 2.24B 2.18B 2.27B 2.32B 2.57B 2.56B 2.55B 2.53B
Retained Earnings Growth - 24.61% 9.43% -2.73% 4.06% 2.12% 10.63% -0.43% -0.22% -0.80%

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 $4.96 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Net Income 422.19M 475.70M 272.26M 254,000.00 150.28M 127.66M 237.01M 54.63M 51.82M 38.56M
divided by
Revenue 3.32B 3.75B 3.54B 2.93B 3.47B 4.16B 4.51B 4.12B 3.74B 3.52B
Net Profit Margin 12.72% 12.69% 7.69% 0.01% 4.33% 3.07% 5.25% 1.33% 1.38% 1.10%

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.

$67.65 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
2007200820092010201120122013201420152016
Gross Profit 2.21B 2.51B 2.36B 1.88B 2.21B 4.16B 2.82B 2.58B 2.31B 2.16B
divided by
Revenue 3.32B 3.75B 3.54B 2.93B 3.47B 4.16B 4.51B 4.12B 3.74B 3.52B
Gross Margin 66.57% 66.97% 66.71% 64.32% 63.77% 100.00% 62.44% 62.56% 61.79% 61.32%

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.

7,090.73% 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
2007200820092010201120122013201420152016
Capital Expenditure 403.48M 403.35M 367.60M 175.47M 160.94M 318.60M 339.86M 163.92M 174.62M 143.20M
divided by
Net Income 422.19M 475.70M 272.26M 254,000.00 150.28M 127.66M 237.01M 54.63M 51.82M 38.56M
Capital Expenditure Ratio 95.57% 84.79% 135.02% 69,083.46% 107.09% 249.57% 143.40% 300.07% 336.98% 371.38%

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
2007200820092010201120122013201420152016
Dividend Paid 61.62M 61.33M 60.77M 61.50M 61.66M 60.96M 57.63M 61.92M 57.36M 55.15M
divided by
Shares Outstanding 92.01M 91.52M 89.29M 88.61M 89.85M 89.54M 83.18M 78.67M 72.94M 69.42M
Dividend Paid Per Share 0.67 0.67 0.68 0.69 0.69 0.68 0.69 0.79 0.79 0.79
Price at Year End 74.10 20.95 34.16 57.19 48.66 45.76 33.19 28.76 27.46 12.00
Dividend Yield 0.90% 3.20% 1.99% 1.21% 1.41% 1.49% 2.09% 2.74% 2.86% 6.62%

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
2007200820092010201120122013201420152016
Shares Outstanding 92.01M 91.52M 89.29M 88.61M 89.85M 89.54M 83.18M 78.67M 72.94M 69.42M
Stock Bought Back - 0.53% 2.50% 0.77% -1.38% 0.35% 7.65% 5.73% 7.85% 5.07%
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