Does URBAN OUTFITTERS INC (NASDAQ:URBN) meet Peter Lynch’s stock-picking criteria?

Lynch encouraged investors to look at businesses they understand and have strong financials. Does URBAN OUTFITTERS INC (NASDAQ:URBN) align with this approach? We take a closer look.

Would Peter Lynch consider URBAN OUTFITTERS INC (NASDAQ:URBN) a winning stock?

• With a favorable Return on Equity (ROE) of 16.28%, URBN demonstrates its ability to deliver attractive returns for shareholders. This metric highlights the company's effective management of assets and its profitability.
• URBN exhibits a favorable Debt-to-Equity ratio at 0.0. This highlights the company's ability to limit excessive debt levels and maintain a strong equity base, demonstrating its financial stability and risk management practices.
• Over the past 5 years, URBN has demonstrated 15.5 growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• URBN boasts a PEG ratio of 0.77, indicating a reasonable valuation relative to its earnings growth.
• A Current Ratio of 1.39 indicates that URBN has a comfortable liquidity buffer.

Fundamental analysis of URBN

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

URBN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 121 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 not valued too expensively and it also shows a decent growth rate.

For an up to date full fundamental analysis you can check the fundamental report of URBN

More Affordable Growth stocks can be found in our Peter Lynch screener.

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.