Abercrombie Beneish M Score

ANF
 Stock
  

USD 23.77  0.21  0.88%   

This module uses fundamental data of Abercrombie Fitch to approximate the value of its Beneish M Score. Abercrombie Fitch M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please continue to Abercrombie Fitch Piotroski F Score and Abercrombie Fitch Altman Z Score analysis.
  
The current year Issuance Repayment of Debt Securities is expected to grow to about 59.1 M, whereas Total Debt is forecasted to decline to about 825 M. The current year Dividend Yield is expected to grow to 0.0347. The current year Payout Ratio is expected to grow to 1.14
At this time, it appears that Abercrombie Fitch is an unlikely manipulator. The earnings manipulation may begin if Abercrombie Fitch's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Abercrombie Fitch executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Abercrombie Fitch's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.31
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.88Focus
Asset Quality1.71Focus
Expense Coverage1.05Focus
Gross Margin Strengs1.05Focus
Accruals Factor1.05Focus
Depreciation Resistance0.73Focus
Net Sales Growth1.06Focus
Financial Leverage Condition0.78Focus

Abercrombie Fitch Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Abercrombie Fitch's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense2.2 BB
Significantly Up
Decreasing
Slightly volatile
Revenues3.9 B3.7 B
Notably Up
Decreasing
Slightly volatile
Trade and Non Trade Receivables64.2 M69.1 M
Significantly Down
Increasing
Very volatile
Property Plant and Equipment Net1.1 B1.2 B
Notably Down
Increasing
Stable
Operating Income240.3 M343.1 M
Way Down
Increasing
Slightly volatile
Net Cash Flow from Operations310.7 M277.8 M
Moderately Up
Increasing
Slightly volatile
Liabilities Non Current903.4 M1.1 B
Significantly Down
Increasing
Slightly volatile
Current Liabilities790.1 MB
Significantly Down
Increasing
Slightly volatile
Total Liabilities1.7 B2.1 B
Significantly Down
Increasing
Slightly volatile
Investments Non Current13.3 M13.4 M
Slightly Down
Decreasing
Slightly volatile
Investments Current75.7 M76.2 M
Slightly Down
Decreasing
Slightly volatile
Investments89 M89.6 M
Slightly Down
Decreasing
Slightly volatile
Gross Margin65.362.2715
Sufficiently Up
Increasing
Very volatile
Depreciation Amortization and Accretion195 M144 M
Significantly Up
Decreasing
Slightly volatile
Debt Non Current706.7 MB
Way Down
Increasing
Slightly volatile
Debt Current118.4 M222.8 M
Way Down
Increasing
Slightly volatile
Total Debt825 M1.2 B
Way Down
Increasing
Slightly volatile
Assets Non Current1.5 B1.4 B
Fairly Up
Increasing
Very volatile
Current Assets1.4 B1.5 B
Significantly Down
Increasing
Slightly volatile
Total Assets2.9 B2.9 B
Fairly Down
Increasing
Stable

Abercrombie Fitch Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Abercrombie Fitch's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Abercrombie Fitch in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Abercrombie Fitch's degree of accounting gimmicks and manipulations.

About Abercrombie Fitch Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

2.19 Billion

Abercrombie Fitch Operating Expenses is projected to decrease significantly based on the last few years of reporting. The past year's Operating Expenses was at 1.97 Billion

About Abercrombie Fitch Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Abercrombie Fitch's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Abercrombie Fitch using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Abercrombie Fitch based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Abercrombie Fitch Co., through its subsidiaries, operates as a specialty retailer. Abercrombie Fitch Co. was founded in 1892 and is headquartered in New Albany, Ohio. Abercrombie Fitch operates under Apparel Retail classification in the United States and is traded on New York Stock Exchange. It employs 7000 people.

Abercrombie Fitch Investors Sentiment

The influence of Abercrombie Fitch's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Abercrombie. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Abercrombie Fitch's public news can be used to forecast risks associated with investment in Abercrombie. The trend in average sentiment can be used to explain how an investor holding Abercrombie can time the market purely based on public headlines and social activities around Abercrombie Fitch. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Abercrombie Fitch's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Abercrombie Fitch's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Abercrombie Fitch's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Abercrombie Fitch.

Abercrombie Fitch Implied Volatility

    
  51.84  
Abercrombie Fitch's implied volatility exposes the market's sentiment of Abercrombie Fitch stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Abercrombie Fitch's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Abercrombie Fitch stock will not fluctuate a lot when Abercrombie Fitch's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Abercrombie Fitch in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Abercrombie Fitch's short interest history, or implied volatility extrapolated from Abercrombie Fitch options trading.

Pair Trading with Abercrombie Fitch

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Abercrombie Fitch position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Abercrombie Fitch will appreciate offsetting losses from the drop in the long position's value.

Moving against Abercrombie Fitch

-0.57BBBYBed Bath Beyond Normal TradingPairCorr
The ability to find closely correlated positions to Abercrombie Fitch could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Abercrombie Fitch when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Abercrombie Fitch - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Abercrombie Fitch to buy it.
The correlation of Abercrombie Fitch is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Abercrombie Fitch moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Abercrombie Fitch moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Abercrombie Fitch can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Please continue to Abercrombie Fitch Piotroski F Score and Abercrombie Fitch Altman Z Score analysis. You can also try Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.

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Is Abercrombie Fitch's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Abercrombie Fitch. If investors know Abercrombie will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Abercrombie Fitch listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.13) 
Market Capitalization
1.2 B
Quarterly Revenue Growth YOY
(0.07) 
Return On Assets
0.0316
Return On Equity
0.11
The market value of Abercrombie Fitch is measured differently than its book value, which is the value of Abercrombie that is recorded on the company's balance sheet. Investors also form their own opinion of Abercrombie Fitch's value that differs from its market value or its book value, called intrinsic value, which is Abercrombie Fitch's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Abercrombie Fitch's market value can be influenced by many factors that don't directly affect Abercrombie Fitch's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Abercrombie Fitch's value and its price as these two are different measures arrived at by different means. Investors typically determine Abercrombie Fitch value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Abercrombie Fitch's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.