NASDAQ:URBN, an undervalued stock with good fundamentals.

Discover URBAN OUTFITTERS INC (NASDAQ:URBN), an undervalued stock highlighted by our stock screener. NASDAQ:URBN showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Deciphering NASDAQ:URBN's Valuation Rating

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:URBN scores a 8 out of 10:

• The Price/Earnings ratio is 11.53, which indicates a very decent valuation of URBN.
• Based on the Price/Earnings ratio, URBN is valued cheaply inside the industry as 80.80% of the companies are valued more expensively.
• URBN is valuated cheaply when we compare the Price/Earnings ratio to 28.36, which is the current average of the S&P500 Index.
• The Price/Forward Earnings ratio is 9.55, which indicates a very decent valuation of URBN.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of URBN indicates a rather cheap valuation: URBN is cheaper than 81.60% of the companies listed in the same industry.
• URBN is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.01, which is the current average of the S&P500 Index.
• Based on the Enterprise Value to EBITDA ratio, URBN is valued cheaply inside the industry as 80.80% of the companies are valued more expensively.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of URBN indicates a somewhat cheap valuation: URBN is cheaper than 79.20% of the companies listed in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• URBN has a very decent profitability rating, which may justify a higher PE ratio.

What does the Profitability looks like for NASDAQ:URBN

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:URBN was assigned a score of 6 for profitability:

• Looking at the Return On Assets, with a value of 7.08%, URBN is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
• URBN has a Return On Equity of 13.72%. This is in the better half of the industry: URBN outperforms 71.20% of its industry peers.
• URBN has a Return On Invested Capital of 9.26%. This is in the better half of the industry: URBN outperforms 72.00% of its industry peers.
• The last Return On Invested Capital (9.26%) for URBN is above the 3 year average (8.69%), which is a sign of increasing profitability.
• URBN has a better Profit Margin (5.66%) than 78.40% of its industry peers.
• With a decent Operating Margin value of 7.56%, URBN is doing good in the industry, outperforming 77.60% of the companies in the same industry.

Evaluating Health: NASDAQ:URBN

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:URBN, the assigned 7 reflects its health status:

• URBN has an Altman-Z score of 3.49. This indicates that URBN is financially healthy and has little risk of bankruptcy at the moment.
• URBN's Altman-Z score of 3.49 is fine compared to the rest of the industry. URBN outperforms 76.80% of its industry peers.
• 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.
• URBN has a better Quick ratio (0.77) than 64.00% of its industry peers.

Growth Insights: NASDAQ:URBN

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:URBN has earned a 5 for growth:

• The Earnings Per Share has grown by an impressive 73.71% over the past year.
• The Earnings Per Share is expected to grow by 8.83% on average over the next years. This is quite good.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Our latest full fundamental report of URBN contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.