ANF Investment Analysis Report & Stock Research, Abercrombie & Fitch Co.

Abercrombie & Fitch Co. (ANF)

ANF Stock Report

2-Year Price History

View Larger ANF Chart
NYSE:ANF
$32.37
(2/9 2:54PM)
-0.2%
Open$32.67 Mkt Cap$2.9 Billion
High$32.93 52Wk High$42.31
Low$32.21 52Wk Low$16.95
Volume2.6 Million Avg Vol 10D4.4 Million

Ockham's Rating/Recommendation Summary

Rating specific information requires Premium Access.
Buy Now or Learn More about Ockham's Features and Services.

ANF Revenue

Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, ANF the high and low end of the Price to Sales per share ratios are 2.02x and 1.02x respectively.

Notice that ANF's current Price to Sales per share ratio is 0.97x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $33.18, ANF is 37% below where we would expect to see it. This will beneficially factor into our final analysis of ANF as it is not often that this stock sinks to these levels.

ANF Cash Earnings

Looking at ANF specifically in their Cash Earnings capabilities, Ockham views ANF as above its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for ANF to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 15.23 and a 7.33 low over the same period.

Given this range of ratios per share, ANF at its current price of $33.18 and a Price to Cash Earnings ratio of 11.36 is 0% above its average historical Price to Cash Earnings ratio. Obviously this makes us more hesitant about ANF because cash earnings would need to rise to improve the valuation. Likewise, a decline in Price to Cash Earnings to below the average of 11.28 would significantly improve our outlook for ANF given the current profit levels.

ANF Dividends

A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.

When reviewing dividend yields for ANF, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management's confidence in the company. ANF’s estimated annual dividend is $0.70 resulting in a current dividend yield of 2.11%. The highest dividend yield from ANF over recent history was 5.10% while the lowest dividend yield was 0.00%. While it is quite common for a growth stock to pay no dividend at all, but for a mature company such as ANF that has a history of paying dividends it is disappointing to see their dividend yield drop so significantly. At this time, the current dividend yield is 17.25% below the median yield.

Peer Comparison

:

Abercrombie & Fitch Co. Industry Grouping

(2/8/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including ANF) 7.53 3.69 » 24.92 0.83 0.28 » 1.49 9.84% 11.69%
*10 year range does not include current year values
American Eagle Outfitters, Inc. AEO $3.3 Billion $15.74 11.32 4.61 » 21.11 1.12 0.47 » 2.76 14.48% 23.48%
Gamestop Corp. Class A GME $3.2 Billion $19.69 5.96 4.59 » 24.04 0.37 0.27 » 1.45 41.02% 12.90%
Supervalu Inc. SVU $3.1 Billion $14.42 2.91 2.42 » 9.48 0.07 0.06 » 0.25 17.13% 8.14%
Abercrombie & Fitch Co. ANF $2.9 Billion $32.44 11.36 2.42 » 22.42 0.97 0.31 » 3.44 15.70% 28.02%
IAC/InterActiveCorp IACI $2.5 Billion $21.16 7.56 2.54 » 23.69 2.06 0.36 » 2.32 -25.57% 2.39%
Big Lots, Inc. BIG $2.4 Billion $29.20 9.93 4.27 » 46.28 0.53 0.22 » 0.68 2.16% 11.52%
Ockham Coverflow

Sharpen Your Investing

  • Access to over 5,000 stock reports
  • Portfolio Analytics and Tracking
  • Business Television Tracking
  • CNBC and Fox Business Show Recaps
Get Started
The Latest Financial News
The most recent Stocks on Financial TV & Blogs from impactful financial news sources
Squawk On The Street

ANF Having an Active Day in News, Now on Squawk On The Street

We are observing a lot of attention being paid to ANF in the news, so if you hold the stock you may want to take a look at what is going on.

Abercrombie & Fitch Co. receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; ANF has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.

“… Today's street poll. By the way the best performing stock yesterday for the market was ABERCROMBIE and fitch up …”

Zero Hedge

Zero Hedge: ANF is Among Most Active Stocks in the News Today

We are observing a lot of attention being paid to ANF in the news, so if you hold the stock you may want to take a look at what is going on.

The Ockham valuation currently has a Fairly Valued stance on ANF because it trades within the price range that we would expect given current market conditions and fundamentals. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Abercrombie & Fitch Co. underperforming. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Abercrombie & Fitch Co. has actually sunk a bit in comparison to the others.

“… ABERCROMBIE & Fitch January same-store sales were up 8% vs. cons est. of -8%. World stocks tumble after Wall Street decline amid concern about global weakness. …”

Fast Money

Fast Money: ANF is Among Most Active Stocks in the News Today

We are observing a lot of attention being paid to ANF in the news, so if you hold the stock you may want to take a look at what is going on.

While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. Abercrombie & Fitch Co. receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; ANF has received less coverage from the financial media in business television and blogs.

“… ABERCROMBIE, cheap around these levels. They've finally got their act together. And tomorrow, I think I have to wait until the dust settles. > > karen? > > I like cvs. …”

Fast Money

Fast Money: ANF is Among Most Active Stocks in the News Today

Something important is going on with ANF today, as it is getting a lot of attention on business television and influential blogs.

When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Abercrombie & Fitch Co. has actually sunk a bit in comparison to the others. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Abercrombie & Fitch Co. underperforming. The Ockham valuation currently has a Fairly Valued stance on ANF because it trades within the price range that we would expect given current market conditions and fundamentals.

“… ABERCROMBIE is sliding through the cracks, too. Green through most of the day. Great earnings. Many people think the stock can double from here. …”

Fox Business

More News Than Normal on ANF from Fox Business

We are observing a lot of attention being paid to ANF in the news, so if you hold the stock you may want to take a look at what is going on.

Abercrombie & Fitch Co. receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; ANF has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.

“… Cisco systems as of today and ABERCROMBIE and fitch's up 4. 5%. Why? > > ABERCROMBIE is a pure technical trade at 30. It showed a lot of support. …”

Fox Business

There is Significant News on ANF:Among the Twenty Most Active Stocks in the News

We are observing a lot of attention being paid to ANF in the news, so if you hold the stock you may want to take a look at what is going on.

The crowd at The Motley Fool does not like ANF and believes that it will Underperform. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, ANF has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on ANF.

“… Dagen: the ABERCROMBIE stock, we will take that on a day like today. High-speed rail, is it on a fast track and should it be? We investigate. …”

Fox Business

There is Significant News on ANF:Among the Twenty Most Active Stocks in the News

Something important is going on with ANF today, as it is getting a lot of attention on business television and influential blogs.

The crowd at The Motley Fool does not like ANF and believes that it will Underperform. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on ANF. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, ANF has been less covered in the news compared to the rest of our universe of stocks.

“… A notable performance at teen retailer, ABERCROMBIE. Getting picked on by a lot of analysts because it has not fared well, put out during the recession or during the holidays ... …”

Fox Business

See More News on ANF from Fox Business

Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on ANF from Fox Business.

The crowd at The Motley Fool does not like ANF and believes that it will Underperform. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on ANF. Check the news on this stock because there is a catalyst that has allowed this stock to advance 5.01% today. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, ANF has been less covered in the news compared to the rest of our universe of stocks.

“… And some of the teen retailers, ABERCROMBIE & fitch, we've been talking about how ABERCROMBIE & fitch's been struggling over the past several months. …”

Power Lunch

ANF Gets Mentioned in the Financial Media

News has broken via the television and viral blogs regarding ANF, so investors should take an interest in learning what was said.

The crowd at The Motley Fool does not like ANF and believes that it will Underperform. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, ANF has been less covered in the news compared to the rest of our universe of stocks. Check the news on this stock because there is a catalyst that has allowed this stock to advance 5.58% today. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on ANF.

“… A number of very important companies and macy's ABERCROMBIE and kohl's raised their guidance and same-store sales numbers are generally above expectations and only a few of them ... …”

Fox Business

Notice a Discussion Covering ANF Appeared Recently in the Financial News

The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Abercrombie & Fitch Co..

Abercrombie & Fitch Co. receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; ANF has received less coverage from the financial media in business television and blogs. The latest news on ANF has created quite a stir as the stock is trading $1.71 higher in today's session. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.

“… 1/2% gain. And nieman marcus also posting a gain of nearly 5%. Teen retailers, ABERCROMBIE & fitch has been struggling over …”

View All Abercrombie & Fitch Co. Stock News

Key Fundamentals

ANF - Abercrombie & Fitch Co. Fundamentals
Price (2/9 2:54PM) $32.37
Volume (2/9 2:54PM) 2.6 Million
Last Close Price $32.44
10 Day Average Volume 4.4 Million
13 Week Price Range $29.88 - $42.31
52 Week Price Range $16.95 - $42.31
LTM Revenue $3.0 Billion
 
Shares Outstanding (01/2009) 88.0 Million
Market Capitalization $2.9 Billion
Shares Held By Institutions 98.3 Million
Institutional Holders 460
% Shares Held By Institutions %
Earnings Per Share (EPS) $3.05
P/E Ratio 135.20
Book Value Per Share $20.21
 
Gross Margin 72.20%
Annual Dividend 0.70
Dividend Yield 2.20%
Beta 1.47
Fiscal Year Ends January

About Abercrombie & Fitch Co.

Abercrombie & Fitch Co. is considered to operate in the Services sector. They specifically operate in the Apparel Stores business segment contained within the Retail industry.

The Company, through its wholly-owned subsidiaries, operates as a specialty retailer of casual apparel for men, women and kids.