URBAN OUTFITTERS INC (URBN) Stock Fundamental Analysis
NASDAQ:URBN - Nasdaq - US9170471026 - Common Stock - Currency: USD
Taking everything into account, URBN scores 7 out of 10 in our fundamental rating. URBN was compared to 121 industry peers in the Specialty Retail industry. Both the health and profitability get an excellent rating, making URBN a very profitable company, without any liquidiy or solvency issues. URBN has a correct valuation and a medium growth rate. This makes URBN very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year URBN was profitable.
In the past year URBN had a positive cash flow from operations.
URBN had positive earnings in each of the past 5 years.
Each year in the past 5 years URBN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of URBN (10.07%) is better than 82.64% of its industry peers.
URBN's Return On Equity of 18.47% is fine compared to the rest of the industry. URBN outperforms 77.69% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.99%, URBN belongs to the top of the industry, outperforming 80.17% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for URBN is below the industry average of 13.07%.
The last Return On Invested Capital (11.99%) for URBN is above the 3 year average (9.01%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.07% | ||
| ROE | 18.47% | ||
| ROIC | 11.99% |
ROA(3y)6.75%
ROA(5y)5.69%
ROE(3y)12.94%
ROE(5y)11.34%
ROIC(3y)9.01%
ROIC(5y)7.79%
1.3 Margins
URBN has a Profit Margin of 7.91%. This is amongst the best in the industry. URBN outperforms 84.30% of its industry peers.
URBN's Profit Margin has improved in the last couple of years.
URBN's Operating Margin of 9.29% is amongst the best of the industry. URBN outperforms 82.64% of its industry peers.
In the last couple of years the Operating Margin of URBN has grown nicely.
With a Gross Margin value of 35.34%, URBN perfoms like the industry average, outperforming 47.93% of the companies in the same industry.
In the last couple of years the Gross Margin of URBN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.29% | ||
| PM (TTM) | 7.91% | ||
| GM | 35.34% |
OM growth 3Y-1.37%
OM growth 5Y5.69%
PM growth 3Y2.02%
PM growth 5Y11.44%
GM growth 3Y1.94%
GM growth 5Y2.02%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so URBN is still creating some value.
The number of shares outstanding for URBN has been reduced compared to 1 year ago.
The number of shares outstanding for URBN has been reduced compared to 5 years ago.
URBN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 4.54 indicates that URBN is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.54, URBN belongs to the best of the industry, outperforming 85.95% of the companies in the same industry.
URBN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.54 |
ROIC/WACC1.26
WACC9.55%
2.3 Liquidity
URBN has a Current Ratio of 1.40. This is a normal value and indicates that URBN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of URBN (1.40) is comparable to the rest of the industry.
A Quick Ratio of 0.75 indicates that URBN may have some problems paying its short term obligations.
URBN has a Quick ratio of 0.75. This is in the better half of the industry: URBN outperforms 65.29% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
URBN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.72%, which is quite impressive.
URBN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.50% yearly.
Looking at the last year, URBN shows a quite strong growth in Revenue. The Revenue has grown by 8.38% in the last year.
The Revenue has been growing slightly by 6.86% on average over the past years.
EPS 1Y (TTM)34.72%
EPS 3Y9.26%
EPS 5Y15.5%
EPS Q2Q%68.12%
Revenue 1Y (TTM)8.38%
Revenue growth 3Y6.86%
Revenue growth 5Y6.86%
Sales Q2Q%10.72%
3.2 Future
Based on estimates for the next years, URBN will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.08% on average per year.
Based on estimates for the next years, URBN will show a small growth in Revenue. The Revenue will grow by 7.49% on average per year.
EPS Next Y25.97%
EPS Next 2Y17.57%
EPS Next 3Y13.05%
EPS Next 5Y10.08%
Revenue Next Year8.38%
Revenue Next 2Y7.53%
Revenue Next 3Y6.15%
Revenue Next 5Y7.49%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.92 indicates a correct valuation of URBN.
Compared to the rest of the industry, the Price/Earnings ratio of URBN indicates a somewhat cheap valuation: URBN is cheaper than 76.86% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. URBN is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 12.85, URBN is valued correctly.
Based on the Price/Forward Earnings ratio, URBN is valued a bit cheaper than the industry average as 71.90% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, URBN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.92 | ||
| Fwd PE | 12.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, URBN is valued a bit cheaper than the industry average as 62.81% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of URBN indicates a somewhat cheap valuation: URBN is cheaper than 69.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.12 | ||
| EV/EBITDA | 9.24 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of URBN may justify a higher PE ratio.
URBN's earnings are expected to grow with 13.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.61
PEG (5Y)1.03
EPS Next 2Y17.57%
EPS Next 3Y13.05%
5. Dividend
5.1 Amount
URBN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
72.28
-0.19 (-0.26%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners74.14%
Inst Owner Change0%
Ins Owners27.61%
Ins Owner Change-0.03%
Market Cap6.48B
Analysts76
Price Target73.88 (2.21%)
Short Float %14.47%
Short Ratio4.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.32%
Min EPS beat(2)6.97%
Max EPS beat(2)35.67%
EPS beat(4)4
Avg EPS beat(4)22.32%
Min EPS beat(4)6.97%
Max EPS beat(4)35.67%
EPS beat(8)7
Avg EPS beat(8)17.32%
EPS beat(12)8
Avg EPS beat(12)14.01%
EPS beat(16)10
Avg EPS beat(16)12.07%
Revenue beat(2)1
Avg Revenue beat(2)-0.6%
Min Revenue beat(2)-2.38%
Max Revenue beat(2)1.18%
Revenue beat(4)1
Avg Revenue beat(4)-0.63%
Min Revenue beat(4)-2.38%
Max Revenue beat(4)1.18%
Revenue beat(8)2
Avg Revenue beat(8)-0.59%
Revenue beat(12)3
Avg Revenue beat(12)-0.58%
Revenue beat(16)4
Avg Revenue beat(16)-0.55%
PT rev (1m)29.53%
PT rev (3m)18.73%
EPS NQ rev (1m)0.31%
EPS NQ rev (3m)5.81%
EPS NY rev (1m)9.65%
EPS NY rev (3m)7.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.69%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.92 | ||
| Fwd PE | 12.85 | ||
| P/S | 1.18 | ||
| P/FCF | 23.12 | ||
| P/OCF | 14.03 | ||
| P/B | 2.75 | ||
| P/tB | 2.75 | ||
| EV/EBITDA | 9.24 |
EPS(TTM)4.54
EY6.28%
EPS(NY)5.63
Fwd EY7.78%
FCF(TTM)3.13
FCFY4.33%
OCF(TTM)5.15
OCFY7.13%
SpS61.29
BVpS26.24
TBVpS26.24
PEG (NY)0.61
PEG (5Y)1.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.07% | ||
| ROE | 18.47% | ||
| ROCE | 15.38% | ||
| ROIC | 11.99% | ||
| ROICexc | 13.92% | ||
| ROICexgc | 13.92% | ||
| OM | 9.29% | ||
| PM (TTM) | 7.91% | ||
| GM | 35.34% | ||
| FCFM | 5.1% |
ROA(3y)6.75%
ROA(5y)5.69%
ROE(3y)12.94%
ROE(5y)11.34%
ROIC(3y)9.01%
ROIC(5y)7.79%
ROICexc(3y)10.7%
ROICexc(5y)9.26%
ROICexgc(3y)10.7%
ROICexgc(5y)9.26%
ROCE(3y)11.56%
ROCE(5y)9.99%
ROICexcg growth 3Y-0.78%
ROICexcg growth 5Y7.78%
ROICexc growth 3Y-0.78%
ROICexc growth 5Y7.78%
OM growth 3Y-1.37%
OM growth 5Y5.69%
PM growth 3Y2.02%
PM growth 5Y11.44%
GM growth 3Y1.94%
GM growth 5Y2.02%
F-Score9
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 160.09% | ||
| Cap/Sales | 3.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.05% | ||
| Profit Quality | 64.51% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 4.54 |
F-Score9
WACC9.55%
ROIC/WACC1.26
Cap/Depr(3y)182.66%
Cap/Depr(5y)189.92%
Cap/Sales(3y)3.77%
Cap/Sales(5y)4.34%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)34.72%
EPS 3Y9.26%
EPS 5Y15.5%
EPS Q2Q%68.12%
EPS Next Y25.97%
EPS Next 2Y17.57%
EPS Next 3Y13.05%
EPS Next 5Y10.08%
Revenue 1Y (TTM)8.38%
Revenue growth 3Y6.86%
Revenue growth 5Y6.86%
Sales Q2Q%10.72%
Revenue Next Year8.38%
Revenue Next 2Y7.53%
Revenue Next 3Y6.15%
Revenue Next 5Y7.49%
EBIT growth 1Y33.2%
EBIT growth 3Y5.4%
EBIT growth 5Y12.93%
EBIT Next Year45.34%
EBIT Next 3Y20.03%
EBIT Next 5Y13.26%
FCF growth 1Y189.96%
FCF growth 3Y48.96%
FCF growth 5Y41.48%
OCF growth 1Y84.58%
OCF growth 3Y11.86%
OCF growth 5Y12.92%