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Abercrombie & Fitch Co (NYSE:ANF)
Piotroski F-Score
8 (As of Today)

Good Sign:

Piotroski F-Score of 8 is 8, indicating very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Abercrombie & Fitch Co has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

ANF' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Max: 9
Current: 8

4
9

During the past 13 years, the highest Piotroski F-Score of Abercrombie & Fitch Co was 9. The lowest was 4. And the median was 6.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Jul16) TTM:Last Year (Jul15) TTM:
Net Income was 41.891 + 57.741 + -39.587 + -13.129 = $47 Mil.
Cash Flow from Operations was 87.293 + 243.401 + -76.283 + 18.424 = $273 Mil.
Revenue was 878.572 + 1112.93 + 685.483 + 783.16 = $3,460 Mil.
Gross Profit was 559.787 + 676.345 + 425.721 + 477.107 = $2,139 Mil.
Average Total Assets from the begining of this year (Jul15)
to the end of this year (Jul16) was
(2422.201 + 2512.744 + 2433.039 + 2344.182 + 2332.39) / 5 = $2408.9112 Mil.
Total Assets at the begining of this year (Jul15) was $2,422 Mil.
Long-Term Debt was $336 Mil.
Total Current Assets was $1,097 Mil.
Total Current Liabilities was $499 Mil.
Net Income was 18.227 + 44.388 + -63.246 + -0.81 = $-1 Mil.

Revenue was 911.453 + 1119.544 + 709.422 + 817.756 = $3,558 Mil.
Gross Profit was 567.07 + 681.885 + 411.549 + 509.862 = $2,170 Mil.
Average Total Assets from the begining of last year (Jul14)
to the end of last year (Jul15) was
(2563.176 + 2575.569 + 2505.167 + 2364.592 + 2422.201) / 5 = $2486.141 Mil.
Total Assets at the begining of last year (Jul14) was $2,563 Mil.
Long-Term Debt was $338 Mil.
Total Current Assets was $1,103 Mil.
Total Current Liabilities was $529 Mil.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Abercrombie & Fitch Co's current net income (TTM) was 47. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Abercrombie & Fitch Co's current cash flow from operations (TTM) was 273. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income (TTM)/Total Assets at the Beginning of This Year (Jul15)
=46.916/2422.201
=0.01936916

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Jul14)
=-1.441/2563.176
=-0.00056219

Abercrombie & Fitch Co's return on assets of this year was 0.01936916. Abercrombie & Fitch Co's return on assets of last year was -0.00056219. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Abercrombie & Fitch Co's current net income (TTM) was 47. Abercrombie & Fitch Co's current cash flow from operations (TTM) was 273. ==> 273 > 47 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by average total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jul16)=Long-Term Debt/Average Total Assets from Jul15 to Jul16
=335.66/2408.9112
=0.13934096

Gearing (Last Year: Jul15)=Long-Term Debt/Average Total Assets from Jul14 to Jul15
=338.215/2486.141
=0.13604015

Abercrombie & Fitch Co's gearing of this year was 0.13934096. Abercrombie & Fitch Co's gearing of last year was 0.13604015. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year: Jul16)=Total Current Assets/Total Current Liabilities
=1096.671/499.344
=2.19622345

Current Ratio (Last Year: Jul15)=Total Current Assets/Total Current Liabilities
=1103.142/529.128
=2.08483014

Abercrombie & Fitch Co's current ratio of this year was 2.19622345. Abercrombie & Fitch Co's current ratio of last year was 2.08483014. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Abercrombie & Fitch Co's number of shares in issue this year was 67.9. Abercrombie & Fitch Co's number of shares in issue last year was 69.7. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=2138.96/3460.145
=0.61817063

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2170.366/3558.175
=0.60996606

Abercrombie & Fitch Co's gross margin of this year was 0.61817063. Abercrombie & Fitch Co's gross margin of last year was 0.60996606. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue (TTM)/Total Assets at the Beginning of This Year (Jul15)
=3460.145/2422.201
=1.42851275

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Jul14)
=3558.175/2563.176
=1.38818989

Abercrombie & Fitch Co's asset turnover of this year was 1.42851275. Abercrombie & Fitch Co's asset turnover of last year was 1.38818989. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+1+1+1+1
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Abercrombie & Fitch Co has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Abercrombie & Fitch Co Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
Question 1 1111111111
Question 2 1111111111
Question 3 0000101000
Question 4 1111111111
Question 5 1101110000
Question 6 1011000110
Question 7 0111011111
Question 8 1100001100
Question 9 0000111001
F-score 6656667655

Abercrombie & Fitch Co Quarterly Data

Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16
Question 1 1111101111
Question 2 1111111111
Question 3 0000000011
Question 4 1111111111
Question 5 1100000000
Question 6 0011110001
Question 7 1111111111
Question 8 0000001011
Question 9 0000000111
F-score 5555545578
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