69.71 USD
+0.76 (+1.1%)
We assign a fundamental rating of 7 out of 10 to URBN. URBN was compared to 122 industry peers in the Specialty Retail industry. URBN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. A decent growth rate in combination with a cheap valuation! Better keep an eye on URBN. These ratings could make URBN a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
- URBN had positive earnings in the past year.
- In the past year URBN had a positive cash flow from operations.
- URBN had positive earnings in each of the past 5 years.
- Each year in the past 5 years URBN had a positive operating cash flow.
1.2 Ratios
- URBN has a Return On Assets of 9.96%. This is amongst the best in the industry. URBN outperforms 84.43% of its industry peers.
- With a decent Return On Equity value of 18.08%, URBN is doing good in the industry, outperforming 77.05% of the companies in the same industry.
- URBN has a Return On Invested Capital of 11.96%. This is amongst the best in the industry. URBN outperforms 81.97% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for URBN is below the industry average of 12.24%.
- The 3 year average ROIC (9.01%) for URBN is below the current ROIC(11.96%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.96% | ||
| ROE | 18.08% | ||
| ROIC | 11.96% |
ROA(3y)6.75%
ROA(5y)5.69%
ROE(3y)12.94%
ROE(5y)11.34%
ROIC(3y)9.01%
ROIC(5y)7.79%
1.3 Margins
- Looking at the Profit Margin, with a value of 8.15%, URBN belongs to the top of the industry, outperforming 85.25% of the companies in the same industry.
- URBN's Profit Margin has improved in the last couple of years.
- URBN's Operating Margin of 9.57% is amongst the best of the industry. URBN outperforms 81.97% of its industry peers.
- In the last couple of years the Operating Margin of URBN has grown nicely.
- URBN has a Gross Margin (35.81%) which is in line with its industry peers.
- URBN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.57% | ||
| PM (TTM) | 8.15% | ||
| GM | 35.81% |
OM growth 3Y-1.37%
OM growth 5Y5.69%
PM growth 3Y2.02%
PM growth 5Y11.44%
GM growth 3Y1.94%
GM growth 5Y2.02%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so URBN is still creating some value.
- URBN has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for URBN has been reduced compared to 5 years ago.
- URBN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- URBN has an Altman-Z score of 4.21. This indicates that URBN is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 4.21, URBN belongs to the best of the industry, outperforming 83.61% of the companies in the same industry.
- URBN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.21 |
ROIC/WACC1.23
WACC9.7%
2.3 Liquidity
- URBN has a Current Ratio of 1.51. This is a normal value and indicates that URBN is financially healthy and should not expect problems in meeting its short term obligations.
- URBN's Current ratio of 1.51 is in line compared to the rest of the industry. URBN outperforms 59.84% of its industry peers.
- URBN has a Quick Ratio of 1.51. This is a bad value and indicates that URBN is not financially healthy enough and could expect problems in meeting its short term obligations.
- URBN has a better Quick ratio (0.79) than 66.39% of its industry peers.
- URBN does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
- URBN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.02%, which is quite impressive.
- Measured over the past years, URBN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.50% on average per year.
- Looking at the last year, URBN shows a quite strong growth in Revenue. The Revenue has grown by 11.09% in the last year.
- The Revenue has been growing slightly by 6.86% on average over the past years.
EPS 1Y (TTM)36.02%
EPS 3Y9.26%
EPS 5Y15.5%
EPS Q2Q%16.36%
Revenue 1Y (TTM)11.09%
Revenue growth 3Y6.86%
Revenue growth 5Y6.86%
Sales Q2Q%12.3%
3.2 Future
- The Earnings Per Share is expected to grow by 10.92% on average over the next years. This is quite good.
- The Revenue is expected to grow by 8.24% on average over the next years. This is quite good.
EPS Next Y32.45%
EPS Next 2Y20.58%
EPS Next 3Y16.45%
EPS Next 5Y10.92%
Revenue Next Year10.8%
Revenue Next 2Y9.34%
Revenue Next 3Y8.23%
Revenue Next 5Y8.24%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 13.78, the valuation of URBN can be described as correct.
- Based on the Price/Earnings ratio, URBN is valued cheaper than 80.33% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, URBN is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 11.78, the valuation of URBN can be described as very reasonable.
- URBN's Price/Forward Earnings ratio is rather cheap when compared to the industry. URBN is cheaper than 80.33% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. URBN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.78 | ||
| Fwd PE | 11.78 |
4.2 Price Multiples
- 72.13% of the companies in the same industry are more expensive than URBN, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, URBN is valued a bit cheaper than 75.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.53 | ||
| EV/EBITDA | 7.55 |
4.3 Compensation for Growth
- URBN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of URBN may justify a higher PE ratio.
- URBN's earnings are expected to grow with 16.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.42
PEG (5Y)0.89
EPS Next 2Y20.58%
EPS Next 3Y16.45%
5. Dividend
5.1 Amount
- No dividends for URBN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
URBAN OUTFITTERS INC / URBN FAQ
Can you provide the ChartMill fundamental rating for URBAN OUTFITTERS INC?
ChartMill assigns a fundamental rating of 7 / 10 to URBN.
Can you provide the valuation status for URBAN OUTFITTERS INC?
ChartMill assigns a valuation rating of 8 / 10 to URBAN OUTFITTERS INC (URBN). This can be considered as Undervalued.
Can you provide the profitability details for URBAN OUTFITTERS INC?
URBAN OUTFITTERS INC (URBN) has a profitability rating of 8 / 10.
What is the valuation of URBAN OUTFITTERS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for URBAN OUTFITTERS INC (URBN) is 13.78 and the Price/Book (PB) ratio is 2.31.
How financially healthy is URBAN OUTFITTERS INC?
The financial health rating of URBAN OUTFITTERS INC (URBN) is 9 / 10.