In Focus – ANF

To determine whether a company is one of the best stocks to buy now requires a detailed analysis of that company. In our “In Focus” reports we perform a more detailed analysis of one of the roughly 2,000 companies we follow. In this report, we will report on Abercrombie & Fitch.

Background

Abercrombie & Fitch (ANF) is a specialty retailer that operates stores and direct-to-consumer operations. It sells casual sportswear apparel for men, women, and children. In addition, the firm operates stores and direct-to-consumer operations selling bras, underwear, personal care products, sleepwear, and at-home products for women under the Gilly Hicks brand name.

Abercrombie & Fitch originally began in 1892 to supply clothes to the rugged outdoorsman. Now, the company is better known for serving the youthful, fashion-oriented buyer. ANF is headquartered in New Albany, Ohio, and it operates primarily in the U.S. However, it started international expansion in 2005 when its first stores in Toronto, Canada opened.

Stock Fundamentals

Abercrombie & Fitch (ANF) is old and respected name in retail. We, generally have a soft spot for firms that have been in business for a very long time and that have built slowly and steadily.  Unfortunately, this is about the only characteristic that sets ANF apart from most other companies. ANF’s overall fundamentals look fairly pedestrian.

ANF’s sales growth has been average, at best. And its profit growth has been less than average. Its finances and metrics for efficiencies are also only mediocre.

ANF’s stock price is still a stunning 70 percent below where it was before the panic year of 2008. And we see no compelling reason why it is going to head dramatically higher any time soon. Though, ANF price-sales ratio makes it look like a bargain, its other price multiples tell a different story.

We rate ANF’s overall fundamentals as only average. And we do not consider it one of the best stocks to buy now.

Stat Sheet – Abercrombie & Fitch 4/29/16

Ticker ANF
Industry Retail (Apparel)
Price $ 26.73
Market Cap  $ 1,841
Dividend Yield 2.99
Dividend/CFOp 0.158
Equity/Assets 0.504
Average Equity/Assets 0.602
Financial Strength Average
Growth Prospects Below Average
Beta 1.28
Price Volatility Above Average
Stock Fundamentals C

(Our assessment of this firm’s fundamentals will be in effect for the rest of calendar year 2016.)

If you would like to see research on the other stocks we cover, some of which we do consider the best stocks, click the link below.

Best Stocks to Buy Now

If you would like to learn why we usually favor the best dividend stocks, click the link below.

Best Dividend Stocks

Disclaimer – Information contained herein has been obtained from sources believed to be reliable. Neither the author nor the publisher guarantees the accuracy or completeness of the information and methods described. This information is offered as general commentary only. It is not intended as investment advice. Investment and trading of securities involves risk, including of loss of capital. Market conditions change over time, and no assurance can be given that a reader may apply the principles described to make a profit. The author and publisher expressly disclaim all and any liability to any person for any investment or trading decisions that the reader may make in reliance on this information.

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In Focus – ANF

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