URBAN OUTFITTERS INC (URBN) Stock Fundamental Analysis
NASDAQ:URBN - Nasdaq - US9170471026 - Common Stock - Currency: USD
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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. URBN has a decent growth rate and is not valued too expensively. These ratings would make URBN suitable for 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.
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
URBN has a Return On Assets of 10.07%. This is amongst the best in the industry. URBN outperforms 82.64% of its industry peers.
The Return On Equity of URBN (18.47%) is better than 77.69% of its industry peers.
With an excellent Return On Invested Capital value of 11.99%, URBN belongs to the best of the industry, outperforming 80.17% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for URBN is below the industry average of 13.07%.
The 3 year average ROIC (9.01%) for URBN is below the current ROIC(11.99%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.07% | ||
| ROE | 18.47% | ||
| ROIC | 11.99% |
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 7.91%, URBN belongs to the best of the industry, outperforming 84.30% of the companies in the same industry.
In the last couple of years the Profit Margin of URBN has grown nicely.
With an excellent Operating Margin value of 9.29%, URBN belongs to the best of the industry, outperforming 82.64% of the companies in the same industry.
In the last couple of years the Operating Margin of URBN has grown nicely.
URBN has a Gross Margin (35.34%) which is in line with its industry peers.
In the last couple of years the Gross Margin of URBN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.29% | ||
| PM (TTM) | 7.91% | ||
| GM | 35.34% |
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.
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
An Altman-Z score of 4.45 indicates that URBN is not in any danger for bankruptcy at the moment.
URBN has a better Altman-Z score (4.45) than 85.95% 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 | 4.45 |
ROIC/WACC1.26
WACC9.48%
2.3 Liquidity
URBN has a Current Ratio of 1.40. This is a normal value and indicates that URBN is financially healthy and should not expect problems in meeting its short term obligations.
URBN has a Current ratio (1.40) which is in line with its industry peers.
URBN has a Quick Ratio of 1.40. This is a bad value and indicates that URBN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.75, URBN is doing good in the industry, outperforming 65.29% of the companies in the same industry.
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 | 1.4 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 34.72% over the past year.
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 8.38% in the past year. This is quite good.
URBN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.86% yearly.
EPS 1Y (TTM)34.72%
EPS 3Y9.26%
EPS 5Y15.5%
EPS Q2Q%68.12%
Revenue 1Y (TTM)8.38%
Revenue growth 3Y6.86%
Revenue growth 5Y6.86%
Sales Q2Q%10.72%
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.
URBN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.49% yearly.
EPS Next Y25.97%
EPS Next 2Y17.57%
EPS Next 3Y13.05%
EPS Next 5Y10.08%
Revenue Next Year8.38%
Revenue Next 2Y7.53%
Revenue Next 3Y6.15%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.98, which indicates a correct valuation of URBN.
URBN's Price/Earnings ratio is a bit cheaper when compared to the industry. URBN is cheaper than 76.03% of the companies in the same industry.
URBN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.90, which 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 72.73% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, URBN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.98 | ||
| Fwd PE | 12.9 |
4.2 Price Multiples
62.81% 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 67.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.2 | ||
| EV/EBITDA | 8.8 |
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 13.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.62
PEG (5Y)1.03
EPS Next 2Y17.57%
EPS Next 3Y13.05%
5. Dividend
5.1 Amount
URBN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
72.54
+3.14 (+4.52%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners74.14%
Inst Owner Change3.14%
Ins Owners27.61%
Ins Owner Change-0.03%
Market Cap6.72B
Analysts72
Price Target73.88 (1.85%)
Short Float %12.92%
Short Ratio3.2
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)21.32%
Min EPS beat(2)6.97%
Max EPS beat(2)35.67%
EPS beat(4)4
Avg EPS beat(4)22.32%
Min EPS beat(4)6.97%
Max EPS beat(4)35.67%
EPS beat(8)7
Avg EPS beat(8)17.32%
EPS beat(12)8
Avg EPS beat(12)14.01%
EPS beat(16)10
Avg EPS beat(16)12.07%
Revenue beat(2)1
Avg Revenue beat(2)-0.6%
Min Revenue beat(2)-2.38%
Max Revenue beat(2)1.18%
Revenue beat(4)1
Avg Revenue beat(4)-0.63%
Min Revenue beat(4)-2.38%
Max Revenue beat(4)1.18%
Revenue beat(8)2
Avg Revenue beat(8)-0.59%
Revenue beat(12)3
Avg Revenue beat(12)-0.58%
Revenue beat(16)4
Avg Revenue beat(16)-0.55%
PT rev (1m)29.53%
PT rev (3m)18.73%
EPS NQ rev (1m)2.03%
EPS NQ rev (3m)5.48%
EPS NY rev (1m)9.65%
EPS NY rev (3m)7.23%
Revenue NQ rev (1m)1.9%
Revenue NQ rev (3m)1.69%
Revenue NY rev (1m)1.37%
Revenue NY rev (3m)1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.98 | ||
| Fwd PE | 12.9 | ||
| P/S | 1.18 | ||
| P/FCF | 23.2 | ||
| P/OCF | 14.08 | ||
| P/B | 2.76 | ||
| P/tB | 2.76 | ||
| EV/EBITDA | 8.8 |
EPS(TTM)4.54
EY6.26%
EPS(NY)5.63
Fwd EY7.75%
FCF(TTM)3.13
FCFY4.31%
OCF(TTM)5.15
OCFY7.1%
SpS61.29
BVpS26.24
TBVpS26.24
PEG (NY)0.62
PEG (5Y)1.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.07% | ||
| ROE | 18.47% | ||
| ROCE | 15.38% | ||
| ROIC | 11.99% | ||
| ROICexc | 13.92% | ||
| ROICexgc | 13.92% | ||
| OM | 9.29% | ||
| PM (TTM) | 7.91% | ||
| GM | 35.34% | ||
| FCFM | 5.1% |
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-Score9
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 160.09% | ||
| Cap/Sales | 3.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.05% | ||
| Profit Quality | 64.51% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 4.45 |
F-Score9
WACC9.48%
ROIC/WACC1.26
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)34.72%
EPS 3Y9.26%
EPS 5Y15.5%
EPS Q2Q%68.12%
EPS Next Y25.97%
EPS Next 2Y17.57%
EPS Next 3Y13.05%
EPS Next 5Y10.08%
Revenue 1Y (TTM)8.38%
Revenue growth 3Y6.86%
Revenue growth 5Y6.86%
Sales Q2Q%10.72%
Revenue Next Year8.38%
Revenue Next 2Y7.53%
Revenue Next 3Y6.15%
Revenue Next 5Y7.49%
EBIT growth 1Y33.2%
EBIT growth 3Y5.4%
EBIT growth 5Y12.93%
EBIT Next Year45.34%
EBIT Next 3Y20.03%
EBIT Next 5Y13.26%
FCF growth 1Y189.96%
FCF growth 3Y48.96%
FCF growth 5Y41.48%
OCF growth 1Y84.58%
OCF growth 3Y11.86%
OCF growth 5Y12.92%