Abercrombie & Fitch Stock Analysis, Valuation (NYSE:ANF)

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$26.16 $0.71 (2.64%) ANF stock closing price Jul 20, 2018 (Closing)

Watch the robo advisor video of Abercrombie & Fitch stock analysis on Amigobulls. Our ANF analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Abercrombie & Fitch Co. Stock Rating 2.8/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for ANF stock analysis. We also use relative valuation metrics like PE ratio and price to sales ratio for Abercrombie & Fitch valuation analysis. Based on a company's historical fundamentals we arrive at Abercrombie & Fitch stock rating which is indicative of the company's financial performance.

Should you buy ANF stock?

  • Abercrombie & Fitch's revenue growth came in at 10.6% in 2018-04.
  • With a debt/equity ratio of 0.25, Abercrombie & Fitch is comparatively less leveraged than its peers in the Retail-Wholesale sector.
  • The lower PS ratio 0.5 for ANF stock versus Retail-Wholesale sector average of 0.8 is a positive for the company.

Should you sell ANF stock?

  • The company saw an average annual sales decline of -4.3 in sales over the last 5 years.
  • Abercrombie & Fitch had an unimpressive average operating margin of 2.8 during the Last Twelve Months (LTM).
  • Abercrombie & Fitch's Net margins were poor at 0.7% in the last twelve months.
  • Trading at a PE ratio of 27.2, ANF stock is overvalued in comparison to sector average multiple of 21.5.
  • Abercrombie & Fitch provides a low return on invested capital of 2.3.
  • Abercrombie & Fitch has a low return on equity of 2.2 over the last twelve months.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -5.5.

Comments on this video and Abercrombie & Fitch stock

Investors can use Amigobulls Abercrombie & Fitch stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Abercrombie & Fitch revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Investors could make use of ANF technical analysis to check whether the fundamental story is reflected in the market sentiment.