For those who appreciate value investing, NASDAQ:URBN is a compelling option with its solid fundamentals.

Discover URBAN OUTFITTERS INC (NASDAQ:URBN), an undervalued stock highlighted by our stock screener. NASDAQ:URBN showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Exploring NASDAQ:URBN's Valuation

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:URBN has earned a 7 for valuation:

• The Price/Earnings ratio is 11.85, which indicates a very decent valuation of URBN.
• Based on the Price/Earnings ratio, URBN is valued a bit cheaper than 80.00% of the companies in the same industry.
• URBN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
• Based on the Price/Forward Earnings ratio of 10.59, the valuation of URBN can be described as reasonable.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of URBN indicates a somewhat cheap valuation: URBN is cheaper than 78.40% of the companies listed in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 22.17, URBN is valued rather cheaply.
• 79.20% 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 77.60% of the companies in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• URBN has a very decent profitability rating, which may justify a higher PE ratio.

Understanding NASDAQ:URBN's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:URBN, the assigned 6 is a significant indicator of profitability:

• The Return On Assets of URBN (7.00%) is better than 72.80% of its industry peers.
• Looking at the Return On Equity, with a value of 13.62%, URBN is in the better half of the industry, outperforming 69.60% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 9.19%, URBN is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
• The last Return On Invested Capital (9.19%) for URBN is above the 3 year average (8.69%), which is a sign of increasing profitability.
• URBN's Profit Margin of 5.58% is fine compared to the rest of the industry. URBN outperforms 78.40% of its industry peers.
• URBN has a better Operating Margin (7.53%) than 73.60% of its industry peers.

Deciphering NASDAQ:URBN's Health Rating

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:URBN has earned a 7 out of 10:

• An Altman-Z score of 3.44 indicates that URBN is not in any danger for bankruptcy at the moment.
• URBN's Altman-Z score of 3.44 is fine compared to the rest of the industry. URBN outperforms 74.40% 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.

Assessing Growth for NASDAQ:URBN

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:URBN was assigned a score of 4 for growth:

• The Earnings Per Share has grown by an impressive 89.47% over the past year.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Our latest full fundamental report of URBN contains the most current fundamental analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.