Overall URBN gets a fundamental rating of 7 out of 10. We evaluated URBN against 122 industry peers in the Specialty Retail industry. Both the health and profitability get an excellent rating, making URBN a very profitable company, without any liquidiy or solvency issues. URBN scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes URBN very considerable for value and quality investing!

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

URBN had positive earnings in the past year.
URBN had a positive operating cash flow in the past year.
In the past 5 years URBN has always been profitable.
In the past 5 years URBN always reported a positive cash flow from operatings.

1.2 Ratios

The Return On Assets of URBN (9.96%) is better than 84.30% of its industry peers.
URBN has a Return On Equity of 18.08%. This is in the better half of the industry: URBN outperforms 76.86% of its industry peers.
URBN has a better Return On Invested Capital (11.96%) than 81.82% of its industry peers.
URBN had an Average Return On Invested Capital over the past 3 years of 9.01%. This 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

The Profit Margin of URBN (8.15%) is better than 85.12% of its industry peers.
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 81.82% of its industry peers.
In the last couple of years the Operating Margin of URBN has grown nicely.
The Gross Margin of URBN (35.81%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of URBN has grown nicely.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
URBN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, URBN has less shares outstanding
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

An Altman-Z score of 4.18 indicates that URBN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.18, URBN belongs to the top of the industry, outperforming 83.47% 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	4.18

ROIC/WACC1.23

WACC9.75%

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 fine compared to the rest of the industry. URBN outperforms 60.33% of its industry peers.
A Quick Ratio of 0.79 indicates that URBN may have some problems paying its short term obligations.
URBN has a Quick ratio of 0.79. This is in the better half of the industry: URBN outperforms 66.94% 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	1.51
Quick Ratio	0.79

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WACC

Debt/Equity

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Altman-Z score

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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.
The Revenue has grown by 11.09% in the past year. This is quite good.
Measured over the past years, URBN shows a small growth in Revenue. The Revenue has been growing by 6.86% on average per year.

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

URBN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.92% yearly.
URBN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.24% yearly.

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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

URBN is valuated correctly with a Price/Earnings ratio of 13.32.
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.
Compared to an average S&P500 Price/Earnings ratio of 27.21, URBN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.39, the valuation of URBN can be described as reasonable.
Based on the Price/Forward Earnings ratio, URBN is valued cheaper than 81.82% 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	13.32
Fwd PE	11.39

4.2 Price Multiples

74.38% of the companies in the same industry are more expensive than URBN, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of URBN indicates a somewhat cheap valuation: URBN is cheaper than 76.86% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	15.01
EV/EBITDA	7.35

4.3 Compensation for Growth

The 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.
URBN's earnings are expected to grow with 16.45% in the coming years. This may justify a more expensive valuation.