Urban Outfitters, Inc.
Urban Outfitters, Inc. Fundamental Analysis
Urban Outfitters, Inc. (URBN) shows moderate financial fundamentals with a PE ratio of 12.69, profit margin of 8.15%, and ROE of 19.20%. The company generates $6.0B in annual revenue with moderate year-over-year growth of 7.71%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze URBN's fundamental strength across five key dimensions:
Efficiency Score
WeakURBN struggles to generate sufficient returns from assets.
Valuation Score
ModerateURBN shows balanced valuation metrics.
Growth Score
ExcellentURBN delivers strong and consistent growth momentum.
Financial Health Score
ExcellentURBN maintains a strong and stable balance sheet.
Profitability Score
ModerateURBN maintains healthy but balanced margins.
Key Financial Metrics
Is URBN Expensive or Cheap?
P/E Ratio
URBN trades at 12.69 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, URBN's PEG of 3.67 indicates potential overvaluation.
Price to Book
The market values Urban Outfitters, Inc. at 2.30 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.11 times EBITDA. This is generally considered low.
How Well Does URBN Make Money?
Net Profit Margin
For every $100 in sales, Urban Outfitters, Inc. keeps $8.15 as profit after all expenses.
Operating Margin
Core operations generate 9.57 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.20 in profit for every $100 of shareholder equity.
ROA
Urban Outfitters, Inc. generates $9.96 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Urban Outfitters, Inc. produces operating cash flow of $628.02M, showing steady but balanced cash generation.
Free Cash Flow
Urban Outfitters, Inc. produces free cash flow of $506.49M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $5.65 in free cash annually.
FCF Yield
URBN converts 8.29% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.69
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.67
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.30
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.03
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.44
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.51
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How URBN Stacks Against Its Sector Peers
| Metric | URBN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.69 | 25.25 | Better (Cheaper) |
| ROE | 19.20% | 1170.00% | Weak |
| Net Margin | 8.15% | 742.00% | Weak |
| Debt/Equity | 0.44 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 1.51 | 9.19 | Neutral |
| ROA | 9.96% | -6467.00% (disorted) | Weak |
URBN outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Urban Outfitters, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
50.08%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
157.89%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
97.75%
Industry Style: Cyclical, Growth, Discretionary
High Growth