NASDAQ:URBN is an undervalued gem with solid fundamentals.

URBAN OUTFITTERS INC (NASDAQ:URBN) has caught the attention of our stock screener as a great value stock. NASDAQ:URBN excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Valuation Assessment of NASDAQ:URBN

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:URBN has achieved a 8 out of 10:

• Based on the Price/Earnings ratio of 10.35, the valuation of URBN can be described as reasonable.
• Based on the Price/Earnings ratio, URBN is valued cheaper than 86.78% of the companies in the same industry.
• The average S&P500 Price/Earnings ratio is at 27.91. URBN is valued rather cheaply when compared to this.
• The Price/Forward Earnings ratio is 9.26, which indicates a very decent valuation of URBN.
• URBN's Price/Forward Earnings ratio is rather cheap when compared to the industry. URBN is cheaper than 84.30% of the companies in the same industry.
• URBN is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.57, which is the current average of the S&P500 Index.
• Based on the Enterprise Value to EBITDA ratio, URBN is valued cheaper than 91.74% 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 73.55% 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.
• The decent profitability rating of URBN may justify a higher PE ratio.

Profitability Assessment of NASDAQ:URBN

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:URBN, the assigned 6 is noteworthy for profitability:

• The Return On Assets of URBN (7.28%) is better than 78.51% of its industry peers.
• The Return On Equity of URBN (13.83%) is better than 72.73% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 9.29%, URBN is in the better half of the industry, outperforming 71.90% of the companies in the same industry.
• The last Return On Invested Capital (9.29%) for URBN is above the 3 year average (8.69%), which is a sign of increasing profitability.
• With a decent Profit Margin value of 5.83%, URBN is doing good in the industry, outperforming 79.34% of the companies in the same industry.
• With a decent Operating Margin value of 7.69%, URBN is doing good in the industry, outperforming 77.69% of the companies in the same industry.

Assessing Health Metrics for NASDAQ:URBN

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:URBN, the assigned 7 for health provides valuable insights:

• An Altman-Z score of 3.44 indicates that URBN is not in any danger for bankruptcy at the moment.
• URBN has a better Altman-Z score (3.44) than 74.38% 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.
• Looking at the Quick ratio, with a value of 0.86, URBN is in the better half of the industry, outperforming 69.42% of the companies in the same industry.

Growth Analysis for NASDAQ:URBN

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:URBN boasts a 5 out of 10:

• The Earnings Per Share has grown by an impressive 46.25% over the past year.
• URBN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.83% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.