URBAN OUTFITTERS INC (NASDAQ:URBN) is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Take a closer look at URBAN OUTFITTERS INC (NASDAQ:URBN), a remarkable value stock uncovered by our stock screener. URBN excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

Analyzing Valuation Metrics

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. URBN boasts a 7 out of 10:

• A Price/Earnings ratio of 11.84 indicates a reasonable valuation of URBN.
• URBN's Price/Earnings ratio is a bit cheaper when compared to the industry. URBN is cheaper than 77.69% 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 28.55.
• URBN is valuated reasonably with a Price/Forward Earnings ratio of 10.07.
• Based on the Price/Forward Earnings ratio, URBN is valued a bit cheaper than 75.21% of the companies in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 21.37, URBN is valued rather cheaply.
• 71.07% of the companies in the same industry are more expensive than URBN, based on the Enterprise Value to EBITDA ratio.
• URBN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. URBN is cheaper than 72.73% 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 an outstanding profitability rating, which may justify a higher PE ratio.

Analyzing Profitability Metrics

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. URBN scores a 8 out of 10:

• The Return On Assets of URBN (8.91%) is better than 82.64% of its industry peers.
• The Return On Equity of URBN (16.28%) is better than 72.73% of its industry peers.
• URBN has a better Return On Invested Capital (10.82%) than 76.03% of its industry peers.
• The last Return On Invested Capital (10.82%) for URBN is above the 3 year average (9.01%), which is a sign of increasing profitability.
• The Profit Margin of URBN (7.25%) is better than 84.30% of its industry peers.
• In the last couple of years the Profit Margin of URBN has grown nicely.
• URBN has a better Operating Margin (8.62%) than 80.99% of its industry peers.
• In the last couple of years the Operating Margin of URBN has grown nicely.
• URBN's Gross Margin has improved in the last couple of years.

Understanding URBN's Health Score

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. URBN has achieved a 9 out of 10:

• An Altman-Z score of 3.77 indicates that URBN is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.77, URBN belongs to the top of the industry, outperforming 84.30% of the companies in the same industry.
• 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.
• With a decent Quick ratio value of 0.81, URBN is doing good in the industry, outperforming 66.12% of the companies in the same industry.
• URBN does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Assessing Growth for 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. URBN was assigned a score of 5 for growth:

• The Earnings Per Share has grown by an impressive 25.62% over the past year.
• URBN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.50% yearly.
• URBN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.18% yearly.

More Decent Value stocks can be found in our Decent Value screener.

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

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.