URBAN OUTFITTERS INC (URBN) Stock Fundamental Analysis
NASDAQ:URBN - Nasdaq - US9170471026 - Common Stock - Currency: USD
Overall URBN gets a fundamental rating of 7 out of 10. We evaluated URBN against 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 has a correct valuation and a medium growth rate.
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.
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
The Return On Assets of URBN (8.91%) is better than 83.05% of its industry peers.
URBN has a Return On Equity of 16.28%. This is in the better half of the industry: URBN outperforms 72.88% of its industry peers.
The Return On Invested Capital of URBN (10.82%) is better than 74.58% of its industry peers.
URBN had an Average Return On Invested Capital over the past 3 years of 9.01%. This is significantly below the industry average of 14.04%.
The last Return On Invested Capital (10.82%) for URBN is above the 3 year average (9.01%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.91% | ||
| ROE | 16.28% | ||
| ROIC | 10.82% |
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 7.25%, URBN belongs to the top of the industry, outperforming 84.75% of the companies in the same industry.
URBN's Profit Margin has improved in the last couple of years.
URBN has a better Operating Margin (8.62%) than 81.36% of its industry peers.
In the last couple of years the Operating Margin of URBN has grown nicely.
The Gross Margin of URBN (34.79%) is comparable to the rest of the industry.
URBN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.62% | ||
| PM (TTM) | 7.25% | ||
| GM | 34.79% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), URBN is creating some value.
The number of shares outstanding for URBN has been reduced compared to 1 year ago.
The number of shares outstanding for URBN has been reduced compared to 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 4.04. 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 4.04, URBN belongs to the top of the industry, outperforming 83.05% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.04 |
ROIC/WACC1.08
WACC9.99%
2.3 Liquidity
A Current Ratio of 1.39 indicates that URBN should not have too much problems paying its short term obligations.
The Current ratio of URBN (1.39) is comparable to the rest of the industry.
A Quick Ratio of 0.81 indicates that URBN may have some problems paying its short term obligations.
URBN has a better Quick ratio (0.81) than 67.80% of its industry peers.
The current and quick ratio evaluation for URBN is rather negative, while it does have 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 | 1.39 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
URBN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.62%, which is quite impressive.
The Earnings Per Share has been growing by 15.50% on average over the past years. This is quite good.
URBN shows a small growth in Revenue. In the last year, the Revenue has grown by 7.71%.
The Revenue has been growing slightly by 6.86% on average over the past years.
EPS 1Y (TTM)25.62%
EPS 3Y9.26%
EPS 5Y15.5%
EPS Q2Q%50.72%
Revenue 1Y (TTM)7.71%
Revenue growth 3Y6.86%
Revenue growth 5Y6.86%
Sales Q2Q%9.42%
3.2 Future
Based on estimates for the next years, URBN will show a small growth in Earnings Per Share. The EPS will grow by 6.59% on average per year.
Based on estimates for the next years, URBN will show a small growth in Revenue. The Revenue will grow by 5.29% on average per year.
EPS Next Y9.15%
EPS Next 2Y9.3%
EPS Next 3Y4.78%
EPS Next 5Y6.59%
Revenue Next Year6.37%
Revenue Next 2Y5.63%
Revenue Next 3Y5.47%
Revenue Next 5Y5.29%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.30, the valuation of URBN can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of URBN indicates a somewhat cheap valuation: URBN is cheaper than 77.12% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of URBN to the average of the S&P500 Index (29.98), we can say URBN is valued rather cheaply.
A Price/Forward Earnings ratio of 13.10 indicates a correct valuation of URBN.
URBN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. URBN is cheaper than 72.88% of the companies in the same industry.
URBN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.66, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 13.1 |
4.2 Price Multiples
URBN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. URBN is cheaper than 68.64% of the companies in the same industry.
URBN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. URBN is cheaper than 74.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.77 | ||
| EV/EBITDA | 7.48 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of URBN may justify a higher PE ratio.
PEG (NY)1.56
PEG (5Y)0.92
EPS Next 2Y9.3%
EPS Next 3Y4.78%
5. Dividend
5.1 Amount
URBN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
58.19
+0.94 (+1.64%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners70.52%
Inst Owner Change-2.62%
Ins Owners27.66%
Ins Owner Change-0.37%
Market Cap5.37B
Analysts71.58
Price Target59.44 (2.15%)
Short Float %8.03%
Short Ratio2.82
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)15.9%
Min EPS beat(2)6.97%
Max EPS beat(2)24.83%
EPS beat(4)4
Avg EPS beat(4)21.13%
Min EPS beat(4)6.97%
Max EPS beat(4)30.94%
EPS beat(8)7
Avg EPS beat(8)19.71%
EPS beat(12)7
Avg EPS beat(12)9.13%
EPS beat(16)10
Avg EPS beat(16)22.54%
Revenue beat(2)0
Avg Revenue beat(2)-1.38%
Min Revenue beat(2)-2.38%
Max Revenue beat(2)-0.38%
Revenue beat(4)1
Avg Revenue beat(4)-0.89%
Min Revenue beat(4)-2.38%
Max Revenue beat(4)0.14%
Revenue beat(8)2
Avg Revenue beat(8)-0.68%
Revenue beat(12)2
Avg Revenue beat(12)-0.97%
Revenue beat(16)4
Avg Revenue beat(16)-0.56%
PT rev (1m)0%
PT rev (3m)42.76%
EPS NQ rev (1m)0.82%
EPS NQ rev (3m)5.35%
EPS NY rev (1m)0%
EPS NY rev (3m)10.78%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)1.23%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 13.1 | ||
| P/S | 0.97 | ||
| P/FCF | 16.77 | ||
| P/OCF | 10.68 | ||
| P/B | 2.17 | ||
| P/tB | 2.17 | ||
| EV/EBITDA | 7.48 |
EPS(TTM)4.07
EY6.99%
EPS(NY)4.44
Fwd EY7.63%
FCF(TTM)3.47
FCFY5.96%
OCF(TTM)5.45
OCFY9.36%
SpS60.15
BVpS26.78
TBVpS26.78
PEG (NY)1.56
PEG (5Y)0.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.91% | ||
| ROE | 16.28% | ||
| ROCE | 13.89% | ||
| ROIC | 10.82% | ||
| ROICexc | 13.16% | ||
| ROICexgc | 13.16% | ||
| OM | 8.62% | ||
| PM (TTM) | 7.25% | ||
| GM | 34.79% | ||
| FCFM | 5.77% |
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 Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 158.18% | ||
| Cap/Sales | 3.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.68% | ||
| Profit Quality | 79.57% | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 4.04 |
F-Score8
WACC9.99%
ROIC/WACC1.08
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)25.62%
EPS 3Y9.26%
EPS 5Y15.5%
EPS Q2Q%50.72%
EPS Next Y9.15%
EPS Next 2Y9.3%
EPS Next 3Y4.78%
EPS Next 5Y6.59%
Revenue 1Y (TTM)7.71%
Revenue growth 3Y6.86%
Revenue growth 5Y6.86%
Sales Q2Q%9.42%
Revenue Next Year6.37%
Revenue Next 2Y5.63%
Revenue Next 3Y5.47%
Revenue Next 5Y5.29%
EBIT growth 1Y23.26%
EBIT growth 3Y5.4%
EBIT growth 5Y12.93%
EBIT Next Year38.61%
EBIT Next 3Y12.86%
EBIT Next 5Y10.3%
FCF growth 1Y3.38%
FCF growth 3Y48.96%
FCF growth 5Y41.48%
OCF growth 1Y-1.29%
OCF growth 3Y11.86%
OCF growth 5Y12.92%