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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry
vs
history
Cash to Debt 0.72
ASNA's Cash to Debt is ranked higher than
71% of the 1280 Companies
in the Global Apparel Stores industry.

( Industry Median: 0.76 vs. ASNA: 0.72 )
ASNA' s 10-Year Cash to Debt Range
Min: 0.16   Max: No Debt
Current: 0.72

Equity to Asset 0.56
ASNA's Equity to Asset is ranked higher than
78% of the 1270 Companies
in the Global Apparel Stores industry.

( Industry Median: 0.48 vs. ASNA: 0.56 )
ASNA' s 10-Year Equity to Asset Range
Min: 0.35   Max: 0.81
Current: 0.56

0.35
0.81
Interest Coverage 32.43
ASNA's Interest Coverage is ranked higher than
70% of the 891 Companies
in the Global Apparel Stores industry.

( Industry Median: 32.43 vs. ASNA: 32.43 )
ASNA' s 10-Year Interest Coverage Range
Min: 9.06   Max: 9999.99
Current: 32.43

9.06
9999.99
F-Score: 5
Z-Score: 3.14
M-Score: -2.82
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 4.00
ASNA's Operating margin (%) is ranked higher than
72% of the 1283 Companies
in the Global Apparel Stores industry.

( Industry Median: 5.07 vs. ASNA: 4.00 )
ASNA' s 10-Year Operating margin (%) Range
Min: 1.03   Max: 10.86
Current: 4

1.03
10.86
Net-margin (%) 2.80
ASNA's Net-margin (%) is ranked higher than
72% of the 1283 Companies
in the Global Apparel Stores industry.

( Industry Median: 3.39 vs. ASNA: 2.80 )
ASNA' s 10-Year Net-margin (%) Range
Min: 1.02   Max: 7.09
Current: 2.8

1.02
7.09
ROE (%) 7.86
ASNA's ROE (%) is ranked higher than
72% of the 1256 Companies
in the Global Apparel Stores industry.

( Industry Median: 9.26 vs. ASNA: 7.86 )
ASNA' s 10-Year ROE (%) Range
Min: 2.56   Max: 22.03
Current: 7.86

2.56
22.03
ROA (%) 4.34
ASNA's ROA (%) is ranked higher than
75% of the 1285 Companies
in the Global Apparel Stores industry.

( Industry Median: 4.22 vs. ASNA: 4.34 )
ASNA' s 10-Year ROA (%) Range
Min: 1.6   Max: 12.36
Current: 4.34

1.6
12.36
ROC (Joel Greenblatt) (%) 16.48
ASNA's ROC (Joel Greenblatt) (%) is ranked higher than
74% of the 1280 Companies
in the Global Apparel Stores industry.

( Industry Median: 17.09 vs. ASNA: 16.48 )
ASNA' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 6.34   Max: 62.68
Current: 16.48

6.34
62.68
Revenue Growth (3Y)(%) 17.20
ASNA's Revenue Growth (3Y)(%) is ranked higher than
94% of the 1114 Companies
in the Global Apparel Stores industry.

( Industry Median: 5.50 vs. ASNA: 17.20 )
ASNA' s 10-Year Revenue Growth (3Y)(%) Range
Min: 4   Max: 23.3
Current: 17.2

4
23.3
EBITDA Growth (3Y)(%) 1.50
ASNA's EBITDA Growth (3Y)(%) is ranked higher than
68% of the 925 Companies
in the Global Apparel Stores industry.

( Industry Median: 6.10 vs. ASNA: 1.50 )
ASNA' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -15.4   Max: 71
Current: 1.5

-15.4
71
EPS Growth (3Y)(%) -7.20
ASNA's EPS Growth (3Y)(%) is ranked higher than
63% of the 872 Companies
in the Global Apparel Stores industry.

( Industry Median: 5.90 vs. ASNA: -7.20 )
ASNA' s 10-Year EPS Growth (3Y)(%) Range
Min: -37   Max: 111.8
Current: -7.2

-37
111.8
» ASNA's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q4 2013

ASNA Guru Trades in Q4 2013

Paul Tudor Jones 26,880 sh (New)
PRIMECAP Management 5,660,500 sh (+69.46%)
Steven Cohen 335,809 sh (+32.04%)
Chuck Royce 8,000,285 sh (+4.09%)
Jim Simons Sold Out
Joel Greenblatt Sold Out
Ken Fisher 2,642,290 sh (-0.68%)
Alan Fournier 7,781,700 sh (-3.51%)
Third Avenue Management 477,260 sh (-28.08%)
Private Capital 532,377 sh (-51.05%)
» More
Q1 2014

ASNA Guru Trades in Q1 2014

John Burbank 10,458 sh (New)
PRIMECAP Management 6,951,400 sh (+22.81%)
Private Capital 548,177 sh (+2.97%)
Chuck Royce 8,076,130 sh (+0.95%)
Steven Cohen 56,400 sh (unchged)
Alan Fournier 7,781,700 sh (unchged)
Third Avenue Management 477,260 sh (unchged)
Ken Fisher 2,340,074 sh (-11.44%)
Paul Tudor Jones 14,326 sh (-46.7%)
Steven Cohen 176,690 sh (-47.38%)
» More
Q2 2014

ASNA Guru Trades in Q2 2014

Paul Tudor Jones 21,864 sh (+52.62%)
Private Capital 784,487 sh (+43.11%)
PRIMECAP Management 9,068,900 sh (+30.46%)
Chuck Royce 8,477,190 sh (+4.97%)
Alan Fournier 7,781,700 sh (unchged)
John Burbank Sold Out
Third Avenue Management Sold Out
Ken Fisher 640,804 sh (-72.62%)
» More
Q3 2014

ASNA Guru Trades in Q3 2014

Jim Simons 420,224 sh (New)
John Burbank 27,258 sh (New)
Paul Tudor Jones 75,446 sh (+245.07%)
Private Capital 1,217,143 sh (+55.15%)
Ken Fisher Sold Out
Chuck Royce 7,775,390 sh (-8.28%)
PRIMECAP Management 8,060,300 sh (-11.12%)
Alan Fournier 5,243,580 sh (-32.62%)
» More
» Details

Insider Trades

Latest Guru Trades with ASNA

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Private Capital 2014-09-30 Add 55.15%0.68%$13.375 - $17.56 $ 12.3-25%1217143
John Burbank 2014-09-30 New Buy0.01%$13.375 - $17.56 $ 12.3-25%27258
Ken Fisher 2014-09-30 Sold Out $13.375 - $17.56 $ 12.3-25%0
Private Capital 2014-06-30 Add 43.11%0.45%$16.4 - $18.02 $ 12.3-28%784487
Third Avenue Management 2014-06-30 Sold Out 0.16%$16.4 - $18.02 $ 12.3-28%0
Ken Fisher 2014-06-30 Reduce -72.62%0.07%$16.4 - $18.02 $ 12.3-28%640804
PRIMECAP Management 2014-06-30 Add 30.46%0.04%$16.4 - $18.02 $ 12.3-28%9068900
John Burbank 2014-06-30 Sold Out 0.01%$16.4 - $18.02 $ 12.3-28%0
PRIMECAP Management 2014-03-31 Add 22.81%0.03%$17 - $22.58 $ 12.3-36%6951400
John Burbank 2014-03-31 New Buy0.01%$17 - $22.58 $ 12.3-36%10458
Private Capital 2013-12-31 Reduce -51.05%1.02%$19.44 - $21.56 $ 12.3-40%532377
Joel Greenblatt 2013-12-31 Sold Out 0.17%$19.44 - $21.56 $ 12.3-40%0
Third Avenue Management 2013-12-31 Reduce -28.08%0.07%$19.44 - $21.56 $ 12.3-40%477260
PRIMECAP Management 2013-12-31 Add 69.46%0.06%$19.44 - $21.56 $ 12.3-40%5660500
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe Members only!!
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Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Ascena Retail Group Inc

Third Avenue Management Comments on Ascena - Jul 02, 2013


Ascena Retail Group (ASNA) is a specialty retailer primarily serving the female demographic within the U.S. While history has shown that retailing can be a very tough business over the long-term, there are multiple elements of Ascena we find unusually attractive. That we had owned its predecessor, Dress Barn, nearly 10 years ago and have followed the company's development in more recent years, only increased our comfort level.

• Portfolio of niche brands. By operating a portfolio of diversified brands, Ascena is not overly reliant on the success of any one of them. Moreover, each of the brands operates separate stores within niche markets and faces very little in the way of direct competition, unlike most apparel retailers. Ascena's primary brands are Dress Barn, Lane Bryant, Catherines, Maurices and Justice and each cater to different niches of the female population based on age, geography, and size (with multiple brands targeting plus size customers, for example). While each brand largely operates autonomously, Ascena employs a unique shared services model whereby the back office functions of all the brands are centralized, thus driving efficiencies across the portfolio and allowing the brands to focus on their customers.

• Strong, aligned management. Ascena's management team owns a significant piece of the company and has a long track record of successfully growing the company by identifying, acquiring and integrating brands into its portfolio without compromising Ascena's strong financial position. While the most recent acquisition of Lane Bryant and Catherines (via the acquisition last year of their holding company Charming Shoppes) has experienced hiccups, we believe Management will ultimately prove successful with its integration strategy and that the current integration period will ultimately prove to just be a pause in the company's long-term track record of creating value for shareholders. Encouragingly, Ascena announced a new president for Lane Bryant shortly following our investment in the company. The new president has been well-received given her stellar track record running The Limited for the last six years and removes a significant question mark as the brand had been without a president since last fall.

• Attractive valuation. Shares of Ascena were purchased at a relatively undemanding 6x EBITDA,equating to roughly a 6% to 7% free cash flow yield.

From Third Avenue Management's semi-annual 2013 commentary.


Check out Third Avenue Management latest stock trades

Top Ranked Articles about Ascena Retail Group Inc

Weekly 3-Year Low Highlights: TNH, ASNA, TDW, AAN
According to GuruFocus list of 3-year lows; Terra Nitrogen Co LP, Ascena Retail Group Inc, Tidewater Inc, and Aaron’s Inc, have all reached their 3-year lows. Read more...
Ascena Retail Group with 8% Free Cash Flow Yield
It is no secret that the retail environment is brutal nowadays. However, the current earning disappointments present great investment opportunities for those investors willing to look through the current headwinds. In fact, everything goes through a cycle, and the retail industry is just going through a down cycle. Today, I would like to share my new finding, Ascena Retail Group (ASNA). It is a retailer with a focus on female shoppers and a 40% upside potential, even under my conservative assumptions. I believe that this investment is worth exploring further, and my analysis below should help provide more insight. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 15.40
ASNA's P/E(ttm) is ranked higher than
87% of the 1353 Companies
in the Global Apparel Stores industry.

( Industry Median: 25.60 vs. ASNA: 15.40 )
ASNA' s 10-Year P/E(ttm) Range
Min: 5.74   Max: 152.07
Current: 15.4

5.74
152.07
P/B 1.10
ASNA's P/B is ranked higher than
81% of the 1353 Companies
in the Global Apparel Stores industry.

( Industry Median: 2.29 vs. ASNA: 1.10 )
ASNA' s 10-Year P/B Range
Min: 0.71   Max: 4.23
Current: 1.1

0.71
4.23
P/S 0.40
ASNA's P/S is ranked higher than
81% of the 1353 Companies
in the Global Apparel Stores industry.

( Industry Median: 0.87 vs. ASNA: 0.40 )
ASNA' s 10-Year P/S Range
Min: 0.3   Max: 1.37
Current: 0.4

0.3
1.37
EV-to-EBIT 10.85
ASNA's EV-to-EBIT is ranked higher than
86% of the 1353 Companies
in the Global Apparel Stores industry.

( Industry Median: 17.48 vs. ASNA: 10.85 )
ASNA' s 10-Year EV-to-EBIT Range
Min: 2.9   Max: 51.4
Current: 10.85

2.9
51.4
PEG 2.19
ASNA's PEG is ranked higher than
86% of the 1353 Companies
in the Global Apparel Stores industry.

( Industry Median: 9999.00 vs. ASNA: 2.19 )
ASNA' s 10-Year PEG Range
Min: 0.16   Max: 12.87
Current: 2.19

0.16
12.87
Shiller P/E 13.30
ASNA's Shiller P/E is ranked higher than
92% of the 1353 Companies
in the Global Apparel Stores industry.

( Industry Median: 50.31 vs. ASNA: 13.30 )
ASNA' s 10-Year Shiller P/E Range
Min: 7   Max: 43.9
Current: 13.3

7
43.9
Current Ratio 1.52
ASNA's Current Ratio is ranked higher than
70% of the 1279 Companies
in the Global Apparel Stores industry.

( Industry Median: 1.55 vs. ASNA: 1.52 )
ASNA' s 10-Year Current Ratio Range
Min: 1.05   Max: 3.88
Current: 1.52

1.05
3.88
Quick Ratio 0.57
ASNA's Quick Ratio is ranked higher than
63% of the 1279 Companies
in the Global Apparel Stores industry.

( Industry Median: 0.83 vs. ASNA: 0.57 )
ASNA' s 10-Year Quick Ratio Range
Min: 0.28   Max: 2.24
Current: 0.57

0.28
2.24

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 2.57
ASNA's Price/Tangible Book is ranked higher than
72% of the 1353 Companies
in the Global Apparel Stores industry.

( Industry Median: 3.36 vs. ASNA: 2.57 )
ASNA' s 10-Year Price/Tangible Book Range
Min: 1.02   Max: 36.81
Current: 2.57

1.02
36.81
Price/DCF (Projected) 0.67
ASNA's Price/DCF (Projected) is ranked higher than
93% of the 1353 Companies
in the Global Apparel Stores industry.

( Industry Median: 2.98 vs. ASNA: 0.67 )
ASNA' s 10-Year Price/DCF (Projected) Range
Min: 0.38   Max: 1.9
Current: 0.67

0.38
1.9
Price/Median PS Value 0.58
ASNA's Price/Median PS Value is ranked higher than
93% of the 1353 Companies
in the Global Apparel Stores industry.

( Industry Median: 1.09 vs. ASNA: 0.58 )
ASNA' s 10-Year Price/Median PS Value Range
Min: 0.51   Max: 1.8
Current: 0.58

0.51
1.8
Price/Peter Lynch Fair Value 1.91
ASNA's Price/Peter Lynch Fair Value is ranked higher than
89% of the 1353 Companies
in the Global Apparel Stores industry.

( Industry Median: 9999.00 vs. ASNA: 1.91 )
ASNA' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.32   Max: 6.02
Current: 1.91

0.32
6.02
Price/Graham Number 1.29
ASNA's Price/Graham Number is ranked higher than
82% of the 1353 Companies
in the Global Apparel Stores industry.

( Industry Median: 2.54 vs. ASNA: 1.29 )
ASNA' s 10-Year Price/Graham Number Range
Min: 0.65   Max: 5.77
Current: 1.29

0.65
5.77
Earnings Yield (Greenblatt) 9.10
ASNA's Earnings Yield (Greenblatt) is ranked higher than
86% of the 1271 Companies
in the Global Apparel Stores industry.

( Industry Median: 6.10 vs. ASNA: 9.10 )
ASNA' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1.9   Max: 34.1
Current: 9.1

1.9
34.1
Forward Rate of Return (Yacktman) 13.01
ASNA's Forward Rate of Return (Yacktman) is ranked higher than
79% of the 869 Companies
in the Global Apparel Stores industry.

( Industry Median: 10.98 vs. ASNA: 13.01 )
ASNA' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 1.5   Max: 57.4
Current: 13.01

1.5
57.4

Analyst Estimate

Jul15 Jul16
Revenue(Mil) 4,883 5,020
EPS($) 0.91 0.97
EPS without NRI($) 0.91 0.97

Business Description

Industry: Retail - Apparel & Specialty » Apparel Stores
Compare:IDEXY, ARO, TJX, FRCOF, ROST » details
Traded in other countries:AHR.Germany,
Ascena Retail Group Inc is a Delaware corporation. The Company is a specialty retailer of apparel for women, and tween girls and boys, and operates, through its wholly owned subsidiaries. It mainly offers apparel, accessories, footwear, and lifestyle products, such as bedroom furnishings and electronics. The Company's businesses segments include: Justice, Lane Bryant, maurices, dressbarn and Catherines. The Justice segment includes approximately 971 specialty retail and outlet stores, e-commerce operations, and certain licensed franchises in international territories. The Justice brand offers fashionable apparel to girls who are ages 7 to 14 in an environment designed to match the energetic lifestyle of tween girls. The Lane Bryant segment includes approximately 877 specialty retail and outlet stores, and e-commerce operations. The Lane Bryant brand offers fashionable and sophisticated plus-size apparel under multiple private labels to female customers in the 25 to 45 age range. The maurices segment includes approximately 877 specialty retail and outlet stores, and e-commerce operations. The maurices brand offers up-to-date fashion designed to appeal to the 17 to 34 year-old female, with stores concentrated in small markets (approximately 25,000 to 100,000 people). The dressbarn segment includes approximately 826 specialty retail and outlet stores, and e-commerce operations. The dressbarn brand mainly attracts female consumers in the mid-30 to mid-50's age range and offers moderate-to-better quality career, special occasion and casual fashion to the working woman. The Catherines segment includes approximately 397 specialty retail and outlet stores, and e-commerce operations. The Catherines brand offers classic apparel and accessories for wear-to-work and casual lifestyles in a full range of plus sizes, generally catering to the female customer 45 years and older. It operates approximately 3,900 stores throughout the United States, Puerto Rico and Canada. The Company's main competitors are Walmart, Macy's, JCPenney, Kohl's, Old Navy, Aeropostale and Target. The Company is subject to income taxes in the United States and numerous international jurisdictions.
» More Articles for ASNA

Headlines

Articles On GuruFocus.com
Private Capital Reduces Holdings in Healthcare Stocks Dec 18 2014 
This Retailer's Resilient Performance Makes It a Smart Investment Dec 12 2014 
maurices Achieves Exceptional Results With Interactive Shoppable Video Nov 20 2014 
Staying Away From This Specialty Retailer Is the Only Option Oct 20 2014 
Urban Outfitters' Price Touched Its 52- Week Level; And Now? Oct 20 2014 
Weekly 3-Year Low Highlights: TNH, ASNA, TDW, AAN Oct 19 2014 
Ascena Retail Group with 8% Free Cash Flow Yield Sep 24 2014 
Can A Struggling Ascena Make a Comeback? Apr 07 2014 
Drill Down on Dreman - Five Sold Out Sep 20 2013 
Third Avenue Management Comments on Ascena Jul 02 2013 

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