URBAN OUTFITTERS INC (URBN) Stock Fundamental Analysis
NASDAQ:URBN - Nasdaq - US9170471026 - Common Stock - Currency: USD
Overall URBN gets a fundamental rating of 7 out of 10. We evaluated URBN against 123 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 has a decent growth rate and is not valued too expensively. These ratings could make URBN a good candidate 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.
In the past 5 years URBN has always been profitable.
URBN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
URBN has a Return On Assets of 10.07%. This is amongst the best in the industry. URBN outperforms 83.06% of its industry peers.
URBN has a Return On Equity of 18.47%. This is in the better half of the industry: URBN outperforms 79.03% of its industry peers.
With an excellent Return On Invested Capital value of 11.99%, URBN belongs to the best of the industry, outperforming 81.45% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for URBN is below the industry average of 12.03%.
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 better Profit Margin (7.91%) than 84.68% of its industry peers.
In the last couple of years the Profit Margin of URBN has grown nicely.
The Operating Margin of URBN (9.29%) is better than 83.06% of its industry peers.
URBN's Operating Margin has improved in the last couple of years.
URBN has a Gross Margin of 35.34%. This is comparable to the rest of the industry: URBN outperforms 48.39% of its industry peers.
URBN's Gross Margin has improved in the last couple of years.
| 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
URBN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, URBN has less shares outstanding
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
URBN has an Altman-Z score of 4.57. This indicates that URBN is financially healthy and has little risk of bankruptcy at the moment.
URBN has a Altman-Z score of 4.57. This is amongst the best in the industry. URBN outperforms 86.29% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.57 |
ROIC/WACC1.35
WACC8.87%
2.3 Liquidity
A Current Ratio of 1.40 indicates that URBN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.40, URBN is in line with its industry, outperforming 54.03% of the companies in the same industry.
URBN has a Quick Ratio of 1.40. This is a bad value and indicates that URBN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.75, URBN is in the better half of the industry, outperforming 65.32% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 34.72% over the past year.
The Earnings Per Share has been growing by 15.50% on average over the past years. This is quite good.
URBN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.38%.
Measured over the past years, URBN shows a small growth in Revenue. The Revenue has been growing by 6.86% on average per year.
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
The Earnings Per Share is expected to grow by 10.08% on average over the next years. This is quite good.
URBN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.49% yearly.
EPS Next Y25.97%
EPS Next 2Y17.57%
EPS Next 3Y11.71%
EPS Next 5Y10.08%
Revenue Next Year8.39%
Revenue Next 2Y7.54%
Revenue Next 3Y6.27%
Revenue Next 5Y7.49%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
URBN is valuated correctly with a Price/Earnings ratio of 16.79.
Compared to the rest of the industry, the Price/Earnings ratio of URBN indicates a somewhat cheap valuation: URBN is cheaper than 75.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of URBN to the average of the S&P500 Index (26.82), we can say URBN is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.55, the valuation of URBN can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of URBN indicates a somewhat cheap valuation: URBN is cheaper than 66.94% of the companies listed in the same industry.
URBN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.79 | ||
| Fwd PE | 13.55 |
4.2 Price Multiples
URBN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. URBN is cheaper than 60.48% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, URBN is valued a bit cheaper than the industry average as 67.74% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.58 | ||
| EV/EBITDA | 9.42 |
4.3 Compensation for Growth
URBN's 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.
PEG (NY)0.65
PEG (5Y)1.08
EPS Next 2Y17.57%
EPS Next 3Y11.71%
5. Dividend
5.1 Amount
URBN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
76.21
+0.93 (+1.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners74.14%
Inst Owner Change-0.21%
Ins Owners27.61%
Ins Owner Change0.27%
Market Cap6.83B
Analysts76
Price Target73.88 (-3.06%)
Short Float %19.13%
Short Ratio5.21
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)0%
PT rev (3m)26.51%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)5.92%
EPS NY rev (1m)0%
EPS NY rev (3m)10.28%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)1.42%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.79 | ||
| Fwd PE | 13.55 | ||
| P/S | 1.2 | ||
| P/FCF | 23.58 | ||
| P/OCF | 14.31 | ||
| P/B | 2.81 | ||
| P/tB | 2.81 | ||
| EV/EBITDA | 9.42 |
EPS(TTM)4.54
EY5.96%
EPS(NY)5.63
Fwd EY7.38%
FCF(TTM)3.23
FCFY4.24%
OCF(TTM)5.32
OCFY6.99%
SpS63.36
BVpS27.13
TBVpS27.13
PEG (NY)0.65
PEG (5Y)1.08
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 | 4.57 |
F-Score9
WACC8.87%
ROIC/WACC1.35
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 3Y11.71%
EPS Next 5Y10.08%
Revenue 1Y (TTM)8.38%
Revenue growth 3Y6.86%
Revenue growth 5Y6.86%
Sales Q2Q%10.72%
Revenue Next Year8.39%
Revenue Next 2Y7.54%
Revenue Next 3Y6.27%
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%