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

Lynch preferred companies with low P/E ratios relative to growth, manageable debt, and strong profitability. In this analysis, we see if URBAN OUTFITTERS INC (NASDAQ:URBN) fits his winning formula.

Following Peter Lynch’s approach: Does URBAN OUTFITTERS INC (NASDAQ:URBN) fit the bill?

• The Return on Equity(ROE) of URBN is 16.28%, which is a strong number. This indicates the company's ability to generate favorable returns for shareholders and reflects its effective management of resources.
• URBN's Debt/Equity ratio of 0.0 suggests a healthy balance between debt financing and shareholder equity.
• Over the past 5 years, URBN has demonstrated 15.5 growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• With a PEG ratio at 0.73, URBN is priced attractively relative to its earnings expansion.
• A Current Ratio of 1.39 suggests that URBN has sufficient assets to cover its short-term liabilities.

Fundamental Analysis Observations

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. URBN scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes URBN very considerable for value and quality investing!

Check the latest full fundamental report of URBN for a complete fundamental analysis.

Our Peter Lynch screener lists more Affordable Growth stocks and is updated daily.

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.