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Two Days of Hunger

Essay by   •  November 25, 2014  •  Essay  •  428 Words (2 Pages)  •  1,151 Views

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Abercrombie & Fitch's average annual growth rate in earnings per share over the past 5 years is 4.16%. Some special situations that may raise a warrant attention for Abercrombie & Fitch might be their outsourcing, as well as some of their operating costs. By adding First Insight Inc. to Abercrombie & Fitch's team they will be able to provide price and product recommendations to its clients by monitoring consumer behavior using online engagement tools. The current dividend yield for Abercrombie & Fitch is 2.3. The average annual growth rate in dividends per share over the past 5 years for Abercrombie & Fitch is 1.80. The future estimated growth rate in dividends per share is 1.5. The average growth rate in cash flow is 4.70. The future estimated growth rate in cash flow per share is 7.55. The average growth rate in sales per share over the past 5 years is 0.51%. The estimated future growth rate in sales per share is 0.20%. Abercrombie & Fitch's current level of the debt ratio is 1.2%. Abercrombie & Fitch's recent bond rating as a firm is 38.50, and its interest rate associated with this rating is 0.72%. Value Line's projected 3-5 year forecast for Abercrombie & Fitch's price per share is 71.45 and its forecasted earnings per share is 4.00.

The 3-5 year forecast for price per share analysis shows that there will be a 16.25 increase to the price. As for the earnings per share it will double in increase from 2.00 to 4.00. My qualitative impression of the capability of the firm's management is that it has some risk that might be higher than a stockholder would be willing to invest in. Its stocks beta is higher than that of the market which shows productivity in the company and a return of investment. Abercrombie's performance safety and technical numbers are all very high which shows all good signs for investing. The date of the Value Line report is January 31, 2014. Value Line gave Abercrombie & Fitch a 2 in Timeliness, a 3 in safety and a 1 in Technical. I think the stock deserve these ratings at this time because Abercrombie's shares are risings, as well as the company's impact in changing their operating procedures by adding First Insight Inc. to their company. A one in technical is accurately given because Abercrombie & Fitch is a very technical company, always looking to satisfy its target company and increase their number in shares, even when it calls

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