NYSE:ANF

Stock Analysis Report

Abercrombie & Fitch

Executive Summary

Abercrombie & Fitch Co., through its subsidiaries, operates as a specialty retailer.

Snowflake

Fundamentals

6 star dividend payer and good value.


Similar Companies

Share Price & News

How has Abercrombie & Fitch's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.9%

ANF

3.2%

US Specialty Retail

1.3%

US Market


1 Year Return

-16.7%

ANF

1.7%

US Specialty Retail

5.9%

US Market

Return vs Industry: ANF underperformed the US Specialty Retail industry which returned 1.7% over the past year.

Return vs Market: ANF underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

ANFIndustryMarket
7 Day5.9%3.2%1.3%
30 Day-14.4%-0.6%-1.9%
90 Day-17.7%0.2%-1.8%
1 Year-12.9%-16.7%3.4%1.7%8.3%5.9%
3 Year12.1%-2.8%39.0%31.9%45.6%36.2%
5 Year-43.5%-54.4%57.8%44.0%66.1%47.9%

Price Volatility Vs. Market

How volatile is Abercrombie & Fitch's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Abercrombie & Fitch undervalued compared to its fair value and its price relative to the market?

14.21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: ANF ($15.16) is trading above our estimate of fair value ($9.34)

Significantly Undervalued: ANF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ANF is good value based on its PE Ratio (14.2x) compared to the Specialty Retail industry average (15x).

PE vs Market: ANF is good value based on its PE Ratio (14.2x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: ANF is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: ANF is good value based on its PB Ratio (1x) compared to the US Specialty Retail industry average (1.3x).


Next Steps

Future Growth

How is Abercrombie & Fitch forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

54.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ANF's forecast earnings growth (54% per year) is above the savings rate (2.7%).

Earnings vs Market: ANF's earnings (54% per year) are forecast to grow faster than the US market (14.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ANF's revenue (1.3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: ANF's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ANF's Return on Equity is forecast to be low in 3 years time (3.7%).


Next Steps

Past Performance

How has Abercrombie & Fitch performed over the past 5 years?

10.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ANF's earnings have grown by 10.3% per year over the past 5 years.

Accelerating Growth: ANF's earnings growth over the past year (86.4%) exceeds its 5-year average (10.3% per year).

Earnings vs Industry: ANF earnings growth over the past year (86.4%) exceeded the Specialty Retail industry 8.3%.


Return on Equity

High ROE: ANF's Return on Equity (7.5%) is considered low.


Return on Assets

ROA vs Industry: ANF's Return on Assets is below or equal to the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: ANF has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Abercrombie & Fitch's financial position?


Financial Position Analysis

Short Term Liabilities: ANF's short term assets ($1.2B) exceeds its short term liabilities ($790.2M)

Long Term Liabilities: ANF's short term assets (1.2B) do not cover its long term liabilities (1.6B)


Debt to Equity History and Analysis

Debt Level: ANF's debt to equity ratio (25%) is considered satisfactory

Reducing Debt: ANF's debt to equity ratio has increased from 16.8% to 25% over the past 5 years.

Debt Coverage: ANF's debt is well covered by operating cash flow (106.1%).

Interest Coverage: ANF's interest payments on its debt are well covered by EBIT (20.9x coverage).


Balance Sheet

Inventory Level: ANF has a high level of physical assets or inventory.

Debt Coverage by Assets: ANF's debt is covered by short term assets (assets are 4.669270x debt).


Next Steps

Dividend

What is Abercrombie & Fitch's current dividend yield, its reliability and sustainability?

5.28%

Current Dividend Yield


Dividend Yield vs Market

company5.3%marketbottom25%1.5%markettop25%3.8%industryaverage2.0%forecastin3Years5.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ANF's dividend (5.28%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: ANF's dividend (5.28%) is in the top 25% of dividend payers in the US market (3.77%)

Stable Dividend: ANF's dividends per share have been stable in the past 10 years.

Growing Dividend: ANF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (75%), ANF's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ANF's dividends in 3 years are forecast to be covered by earnings (60% payout ratio).


Next Steps

Management

What is the CEO of Abercrombie & Fitch's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Fran Horowitz (55yo)

2.7yrs

Tenure

US$8,481,742

Compensation

Ms. Fran Horowitz has been the Chief Executive Officer of Abercrombie & Fitch Co. since February 1, 2017. Ms. Horowitz served as President and Chief Merchandising Officer of Abercrombie & Fitch Co. from De ...


CEO Compensation Analysis

Compensation vs. Market: Fran's total compensation ($USD8.48M) is about average for companies of similar size in the US market ($USD2.76M).

Compensation vs Earnings: Fran's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.8yrs

Average Tenure

54yo

Average Age

Experienced Management: ANF's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

4.2yrs

Average Tenure

68yo

Average Age

Experienced Board: ANF's board of directors are considered experienced (4.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$74,96612 Mar 19
Nigel Travis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,917
Max PriceUS$25.70
BuyUS$39,43904 Dec 18
Kerrii Anderson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$19.72

Ownership Breakdown


Management Team

  • David Leino (55yo)

    Senior Vice President of Global Real Estate

    • Tenure: 19.7yrs
    • Compensation: US$1.83m
  • Greg Henchel (51yo)

    Senior VP

    • Tenure: 1yrs
    • Compensation: US$816.38k
  • David Cupps (82yo)

    Senior Vice President and Senior Counsel

    • Tenure: 12.5yrs
    • Compensation: US$1.25m
  • Pam Quintiliano

    Vice President of Investor Relations

    • Tenure: 0.8yrs
  • Will Smith

    Chief Marketing Officer

    • Tenure: 2.8yrs
  • Fran Horowitz (55yo)

    CEO & Director

    • Tenure: 2.7yrs
    • Compensation: US$8.48m
  • Jim Bierbower (54yo)

    Executive Vice President of Human Resources

    • Tenure: 5.8yrs
  • John Gabrielli

    Chief Human Resources Officer

    • Tenure: 0yrs
  • Kristin Scott (51yo)

    President of Global Brands

    • Tenure: 3.2yrs
    • Compensation: US$3.94m
  • Scott Lipesky (44yo)

    Senior VP & CFO

    • Tenure: 2yrs
    • Compensation: US$1.84m

Board Members

  • James Bachmann (76yo)

    Independent Director

    • Tenure: 16.3yrs
    • Compensation: US$269.82k
  • Nigel Travis (69yo)

    Independent Director

    • Tenure: 0.7yrs
  • Kerrii Anderson (62yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$273.11k
  • Michael Greenlees (72yo)

    Independent Director

    • Tenure: 8.7yrs
    • Compensation: US$265.38k
  • Charlie Perrin (74yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$279.61k
  • Archie Griffin (64yo)

    Independent Director

    • Tenure: 19.8yrs
    • Compensation: US$247.88k
  • Terry Burman (73yo)

    Non-Executive Chairman

    • Tenure: 1.7yrs
    • Compensation: US$468.30k
  • Helen McCluskey (64yo)

    Independent Director

    • Tenure: 0.7yrs
  • Sarah Gallagher (67yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$235.38k
  • Fran Horowitz (55yo)

    CEO & Director

    • Tenure: 2.7yrs
    • Compensation: US$8.48m

Company Information

Abercrombie & Fitch Co.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Abercrombie & Fitch Co.
  • Ticker: ANF
  • Exchange: NYSE
  • Founded: 1892
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: US$952.960m
  • Shares outstanding: 62.86m
  • Website: https://www.abercrombie.com

Number of Employees


Location

  • Abercrombie & Fitch Co.
  • 6301 Fitch Path
  • New Albany
  • Ohio
  • 43054
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ANFNYSE (New York Stock Exchange)YesClass A Common StockUSUSDSep 1996
AFTDB (Deutsche Boerse AG)YesClass A Common StockDEEURSep 1996
0R32LSE (London Stock Exchange)YesClass A Common StockGBUSDSep 1996
ANFBASE (Buenos Aires Stock Exchange)CEDEAR EACH 1 REP 1 COM USD0ARARSApr 2019

Biography

Abercrombie & Fitch Co., through its subsidiaries, operates as a specialty retailer. The company operates in two segments, Hollister and Abercrombie. It offers an assortment of apparel, personal care produ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:30
End of Day Share Price2019/10/14 00:00
Earnings2019/08/03
Annual Earnings2019/02/02


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.