NASDAQ:URBN stands out as a stock that provides good value for the fundamentals it showcases.

Our stock screener has singled out URBAN OUTFITTERS INC (NASDAQ:URBN) as a stellar value proposition. NASDAQ:URBN not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Valuation Assessment of NASDAQ:URBN

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:URBN has earned a 7 for valuation:

• Based on the Price/Earnings ratio, URBN is valued a bit cheaper than 72.66% of the companies in the same industry.
• URBN is valuated rather cheaply when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
• URBN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. URBN is cheaper than 72.66% of the companies in the same industry.
• The average S&P500 Price/Forward Earnings ratio is at 21.63. URBN is valued slightly cheaper when compared to this.
• URBN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. URBN is cheaper than 67.97% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of URBN indicates a somewhat cheap valuation: URBN is cheaper than 67.19% of the companies listed in the same industry.
• URBN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The decent profitability rating of URBN may justify a higher PE ratio.
• URBN's earnings are expected to grow with 30.05% in the coming years. This may justify a more expensive valuation.

Profitability Analysis for NASDAQ:URBN

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:URBN has earned a 6 out of 10:

• URBN has a Return On Assets of 6.60%. This is in the better half of the industry: URBN outperforms 70.31% of its industry peers.
• With a decent Return On Equity value of 13.26%, URBN is doing good in the industry, outperforming 68.75% of the companies in the same industry.
• With a decent Return On Invested Capital value of 8.68%, URBN is doing good in the industry, outperforming 66.41% of the companies in the same industry.
• The last Return On Invested Capital (8.68%) for URBN is above the 3 year average (5.86%), which is a sign of increasing profitability.
• URBN has a Profit Margin of 5.37%. This is in the better half of the industry: URBN outperforms 74.22% of its industry peers.
• In the last couple of years the Profit Margin of URBN has grown nicely.
• With a decent Operating Margin value of 7.06%, URBN is doing good in the industry, outperforming 71.88% of the companies in the same industry.

A Closer Look at Health for NASDAQ:URBN

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:URBN, the assigned 7 for health provides valuable insights:

• URBN has an Altman-Z score of 3.54. This indicates that URBN is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.54, URBN is in the better half of the industry, outperforming 73.44% of the companies in the same industry.
• There is no outstanding debt for URBN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

Understanding NASDAQ:URBN's Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:URBN has received a 5 out of 10:

• The Earnings Per Share has grown by an impressive 62.36% over the past year.
• Based on estimates for the next years, URBN will show a very strong growth in Earnings Per Share. The EPS will grow by 20.67% on average per year.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Check the latest full fundamental report of URBN for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.