URBAN OUTFITTERS INC (URBN) Stock Fundamental Analysis
USA - NASDAQ:URBN - US9170471026 - Common Stock
71.41 USD
-0.17 (-0.24%)
71.53 USD
+0.12 (+0.17%)
We assign a fundamental rating of 7 out of 10 to URBN. URBN was compared to 121 industry peers in the Specialty Retail industry. URBN gets an excellent profitability rating and is at the same time showing great financial health properties. URBN may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make URBN suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
In the past year URBN was profitable.
URBN had a positive operating cash flow in the past year.
Each year in the past 5 years URBN has been profitable.
Each year in the past 5 years URBN had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 10.09%, URBN belongs to the best of the industry, outperforming 82.64% of the companies in the same industry.
URBN's Return On Equity of 18.42% is fine compared to the rest of the industry. URBN outperforms 78.51% of its industry peers.
URBN has a better Return On Invested Capital (12.00%) than 80.17% of its industry peers.
The Average Return On Invested Capital over the past 3 years for URBN is below the industry average of 12.16%.
The 3 year average ROIC (9.01%) for URBN is below the current ROIC(12.00%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.09% | ||
| ROE | 18.42% | ||
| ROIC | 12% |
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
URBN's Profit Margin of 8.15% is amongst the best of the industry. URBN outperforms 83.47% of its industry peers.
In the last couple of years the Profit Margin of URBN has grown nicely.
URBN's Operating Margin of 9.54% is amongst the best of the industry. URBN outperforms 82.64% of its industry peers.
URBN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 35.67%, URBN is in line with its industry, outperforming 47.93% of the companies in the same industry.
URBN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.54% | ||
| PM (TTM) | 8.15% | ||
| GM | 35.67% |
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
URBN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
URBN has less shares outstanding than it did 1 year ago.
URBN has less shares outstanding than it did 5 years ago.
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.
2.2 Solvency
URBN has an Altman-Z score of 4.34. This indicates that URBN is financially healthy and has little risk of bankruptcy at the moment.
URBN has a better Altman-Z score (4.34) than 82.64% of its industry peers.
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 | 4.34 |
ROIC/WACC1.24
WACC9.68%
2.3 Liquidity
A Current Ratio of 1.48 indicates that URBN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.48, URBN is in the better half of the industry, outperforming 61.98% of the companies in the same industry.
URBN has a Quick Ratio of 1.48. This is a bad value and indicates that URBN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of URBN (0.84) is better than 73.55% 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 | 1.48 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 39.03% over the past year.
The Earnings Per Share has been growing by 15.50% on average over the past years. This is quite good.
Looking at the last year, URBN shows a quite strong growth in Revenue. The Revenue has grown by 9.63% in the last year.
URBN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.86% yearly.
EPS 1Y (TTM)39.03%
EPS 3Y9.26%
EPS 5Y15.5%
EPS Q2Q%27.42%
Revenue 1Y (TTM)9.63%
Revenue growth 3Y6.86%
Revenue growth 5Y6.86%
Sales Q2Q%11.3%
3.2 Future
URBN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.08% yearly.
Based on estimates for the next years, URBN will show a small growth in Revenue. The Revenue will grow by 7.49% on average per year.
EPS Next Y25.31%
EPS Next 2Y17.33%
EPS Next 3Y14.98%
EPS Next 5Y10.08%
Revenue Next Year9.74%
Revenue Next 2Y8.38%
Revenue Next 3Y7.68%
Revenue Next 5Y7.49%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.63, the valuation of URBN can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of URBN indicates a rather cheap valuation: URBN is cheaper than 80.17% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.38. URBN is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.75, which indicates a correct valuation of URBN.
Based on the Price/Forward Earnings ratio, URBN is valued a bit cheaper than the industry average as 77.69% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.86. URBN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.63 | ||
| Fwd PE | 12.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, URBN is valued a bit cheaper than the industry average as 69.42% of the companies are valued more expensively.
URBN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. URBN is cheaper than 80.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.06 | ||
| EV/EBITDA | 8.14 |
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.
URBN has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as URBN's earnings are expected to grow with 14.98% in the coming years.
PEG (NY)0.58
PEG (5Y)0.94
EPS Next 2Y17.33%
EPS Next 3Y14.98%
5. Dividend
5.1 Amount
No dividends for URBN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
71.41
-0.17 (-0.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners76.48%
Inst Owner Change3%
Ins Owners28.55%
Ins Owner Change0.2%
Market Cap6.41B
Analysts75.79
Price Target80.22 (12.34%)
Short Float %15.55%
Short Ratio4.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.26%
Min EPS beat(2)4.86%
Max EPS beat(2)35.67%
EPS beat(4)4
Avg EPS beat(4)18.08%
Min EPS beat(4)4.86%
Max EPS beat(4)35.67%
EPS beat(8)7
Avg EPS beat(8)15.31%
EPS beat(12)9
Avg EPS beat(12)15.1%
EPS beat(16)10
Avg EPS beat(16)8.44%
Revenue beat(2)1
Avg Revenue beat(2)0.45%
Min Revenue beat(2)-0.28%
Max Revenue beat(2)1.18%
Revenue beat(4)1
Avg Revenue beat(4)-0.46%
Min Revenue beat(4)-2.38%
Max Revenue beat(4)1.18%
Revenue beat(8)2
Avg Revenue beat(8)-0.6%
Revenue beat(12)3
Avg Revenue beat(12)-0.46%
Revenue beat(16)3
Avg Revenue beat(16)-0.86%
PT rev (1m)4.47%
PT rev (3m)13.3%
EPS NQ rev (1m)-1.52%
EPS NQ rev (3m)-1.49%
EPS NY rev (1m)-0.53%
EPS NY rev (3m)9.08%
Revenue NQ rev (1m)1.75%
Revenue NQ rev (3m)1.61%
Revenue NY rev (1m)1.24%
Revenue NY rev (3m)1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.63 | ||
| Fwd PE | 12.75 | ||
| P/S | 1.1 | ||
| P/FCF | 16.06 | ||
| P/OCF | 10.86 | ||
| P/B | 2.48 | ||
| P/tB | 2.48 | ||
| EV/EBITDA | 8.14 |
EPS(TTM)4.88
EY6.83%
EPS(NY)5.6
Fwd EY7.85%
FCF(TTM)4.45
FCFY6.23%
OCF(TTM)6.58
OCFY9.21%
SpS65.02
BVpS28.77
TBVpS28.77
PEG (NY)0.58
PEG (5Y)0.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.09% | ||
| ROE | 18.42% | ||
| ROCE | 15.4% | ||
| ROIC | 12% | ||
| ROICexc | 14.5% | ||
| ROICexgc | 14.5% | ||
| OM | 9.54% | ||
| PM (TTM) | 8.15% | ||
| GM | 35.67% | ||
| FCFM | 6.84% |
ROA(3y)6.75%
ROA(5y)5.69%
ROE(3y)12.94%
ROE(5y)11.34%
ROIC(3y)9.01%
ROIC(5y)7.79%
ROICexc(3y)10.7%
ROICexc(5y)9.26%
ROICexgc(3y)10.7%
ROICexgc(5y)9.26%
ROCE(3y)11.56%
ROCE(5y)9.99%
ROICexcg growth 3Y-0.78%
ROICexcg growth 5Y7.78%
ROICexc growth 3Y-0.78%
ROICexc growth 5Y7.78%
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%
F-Score8
Asset Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 159.04% | ||
| Cap/Sales | 3.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.17% | ||
| Profit Quality | 83.88% | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 4.34 |
F-Score8
WACC9.68%
ROIC/WACC1.24
Cap/Depr(3y)182.66%
Cap/Depr(5y)189.92%
Cap/Sales(3y)3.77%
Cap/Sales(5y)4.34%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)39.03%
EPS 3Y9.26%
EPS 5Y15.5%
EPS Q2Q%27.42%
EPS Next Y25.31%
EPS Next 2Y17.33%
EPS Next 3Y14.98%
EPS Next 5Y10.08%
Revenue 1Y (TTM)9.63%
Revenue growth 3Y6.86%
Revenue growth 5Y6.86%
Sales Q2Q%11.3%
Revenue Next Year9.74%
Revenue Next 2Y8.38%
Revenue Next 3Y7.68%
Revenue Next 5Y7.49%
EBIT growth 1Y36.11%
EBIT growth 3Y5.4%
EBIT growth 5Y12.93%
EBIT Next Year53.63%
EBIT Next 3Y21.35%
EBIT Next 5Y13.26%
FCF growth 1Y86.96%
FCF growth 3Y48.96%
FCF growth 5Y41.48%
OCF growth 1Y53.03%
OCF growth 3Y11.86%
OCF growth 5Y12.92%