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Why I Like Abercrombie & Fitch Co. (NYSE:ANF)

Simply Wall St

Attractive stocks have exceptional fundamentals. In the case of Abercrombie & Fitch Co. (NYSE:ANF), there's is a financially-robust , dividend-paying company with a strong track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on Abercrombie & Fitch here.

6 star dividend payer with proven track record

ANF delivered a bottom-line expansion of 86% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, ANF also outperformed its industry, which delivered a growth of 8.3%. This paints a buoyant picture for the company. ANF's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that ANF has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. ANF seems to have put its debt to good use, generating operating cash levels of 1.06x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

NYSE:ANF Income Statement, September 16th 2019

For those seeking income streams from their portfolio, ANF is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 4.5%, making it one of the best dividend companies in the market.

NYSE:ANF Historical Dividend Yield, September 16th 2019

Next Steps:

For Abercrombie & Fitch, there are three important aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for ANF’s future growth? Take a look at our free research report of analyst consensus for ANF’s outlook.
  2. Valuation: What is ANF worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ANF is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ANF? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.