Taking everything into account, URBN scores 7 out of 10 in our fundamental rating. URBN was compared to 122 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 is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make URBN suitable for value and quality investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year URBN was profitable.
In the past year URBN had a positive cash flow from operations.
URBN had positive earnings in each of the past 5 years.
URBN had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

With an excellent Return On Assets value of 9.96%, URBN belongs to the best of the industry, outperforming 84.43% of the companies in the same industry.
The Return On Equity of URBN (18.08%) is better than 77.05% of its industry peers.
URBN has a better Return On Invested Capital (11.96%) than 81.97% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for URBN is below the industry average of 12.24%.
The last Return On Invested Capital (11.96%) for URBN is above the 3 year average (9.01%), which is a sign of increasing profitability.

		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

With an excellent Profit Margin value of 8.15%, URBN belongs to the best 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 has a better Operating Margin (9.57%) than 81.97% 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 35.81%, URBN is in line with its industry, outperforming 48.36% of the companies in the same 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

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.
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 4.21. 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.
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	4.21

ROIC/WACC1.23

WACC9.7%

2.3 Liquidity

A Current Ratio of 1.51 indicates that URBN should not have too much problems paying its short term obligations.
URBN has a Current ratio (1.51) which is in line with 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's Quick ratio of 0.79 is fine compared to the rest of the industry. URBN outperforms 66.39% 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.
URBN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.50% yearly.
URBN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.09%.
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

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

With a Price/Earnings ratio of 13.63, URBN is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of URBN indicates a rather cheap valuation: URBN is cheaper than 80.33% of the companies listed in the same industry.
URBN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.65, the valuation of URBN can be described as very reasonable.
Based on the Price/Forward Earnings ratio, URBN is valued cheaply inside the industry as 80.33% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, URBN is valued rather cheaply.

		Industry Rank	Sector Rank
PE	13.63
Fwd PE	11.65

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, URBN is valued a bit cheaper than the industry average as 72.13% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, URBN is valued a bit cheaper than the industry average as 75.41% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	15.36
EV/EBITDA	7.55

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.
The excellent profitability rating of URBN may justify a higher PE ratio.
A more expensive valuation may be justified as URBN's earnings are expected to grow with 16.45% in the coming years.