ANF Intrinsic Value Calculation – Principal Financial Group Reduces Investment in Abercrombie & Fitch Co.
June 22, 2023
🌥️Trending News
Abercrombie & Fitch ($NYSE:ANF) Co. offers a wide variety of products, ranging from casual wear and accessories to lingerie and fragrances. Its stock is traded on the New York Stock Exchange under the symbol ANF. Despite the reduced investment from Principal Financial Group Inc., Abercrombie & Fitch Co. still remains a strong and prosperous company.
Share Price
This resulted in ANF’s stock opening at $30.0 and closing at $31.4, reflecting a 4.8% increase from the prior closing price of 30.0. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for ANF. More…
| Total Revenues | Net Income | Net Margin |
| 3.72k | 35.86 | 1.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for ANF. More…
| Operations | Investing | Financing |
| 214.88 | -168.53 | -60.34 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for ANF. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.56k | 1.85k | 14.02 |
Key Ratios Snapshot
Some of the financial key ratios for ANF are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.3% | 6.1% | 3.8% |
| FCF Margin | ROE | ROA |
| 0.8% | 12.6% | 3.4% |
Analysis – ANF Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis of the fundamentals of ABERCROMBIE & FITCH. Using our proprietary Valuation Line, we have determined that the intrinsic value of ABERCROMBIE & FITCH’s stock is around $26.2. Currently, ABERCROMBIE & FITCH’s stock is trading at $31.4, which is approximately 20.0% higher than its intrinsic value. This suggests that ABERCROMBIE & FITCH’s stock is currently overvalued. More…
Peers
Competition between Abercrombie & Fitch Co and its competitors, Gap Inc, Children’s Place Inc, and Ross Stores Inc, is fierce. All four companies specialize in retail apparel and strive to offer their customers the best products and services. As a result, each company constantly works to outpace the others in terms of product offerings, store locations, and customer service.
– Gap Inc ($NYSE:GPS)
Gap Inc is a leading apparel retail company based in San Francisco, California. The company offers apparel, accessories, and personal care products for men, women, and children through its brands, which include Gap, Old Navy, Banana Republic, Athleta, and Intermix. As of 2022, Gap Inc. has a market capitalization of 4.4 billion dollars and a return on equity of -0.62%. This is lower than the industry average for apparel retail companies, indicating that the company has not been able to generate a satisfactory return on its equity investments. However, the company’s market capitalization of 4.4 billion dollars suggests that investors are still confident in the company’s future prospects.
– Children’s Place Inc ($NASDAQ:PLCE)
Children’s Place Inc is a popular children’s apparel retailer with a market cap of 461.48M as of 2022. The company offers a variety of clothing, accessories, and footwear for kids ranging from newborn to age 14. They have an impressive Return on Equity of 41.18%, which is a measure of the company’s ability to generate income from shareholders’ investments. This is a strong indicator of the company’s financial health and its ability to make efficient use of capital. The Children’s Place Inc is well-positioned to continue to provide great products and services to its customers in the years to come.
– Ross Stores Inc ($NASDAQ:ROST)
Ross Stores Inc is a leading off-price retailer in the United States. It operates 1,400 stores in 39 states, the District of Columbia, and Guam. The company offers apparel, accessories, footwear, and home fashions at discounts of 20% to 60% below department and specialty store regular prices. As of 2022, Ross Stores Inc has a market capitalization of 39.77B and a Return on Equity (ROE) of 29.12%. This reflects the company’s strong financial performance and ability to generate significant returns for its shareholders. Ross Stores has consistently recorded positive earnings growth for over 10 years and is well positioned for future growth.
Summary
This news caused the stock price of ANF to move up the same day, indicating that the market may have viewed the divestment as a positive sign for the company’s future prospects. Investors may find it worthwhile to further analyze the company’s performance in order to decide if it is a good fit for their portfolio. Analysts will be looking at ANF’s balance sheet, cash flow statement, and income statement to see how well the company has been performing and if it is a good long-term bet.
They will also be paying attention to any industry developments that could have a positive or negative effect on ANF’s future earnings. Investors should also take into consideration whether ANF’s current valuation is too high or too low and if there are any potential catalysts that could cause a significant move in the near future.
