Urban Outfitters Inc (URBN) stock analysis

P/E below its 5-year median

Urban Outfitters's P/E of 13.5 is below its own 5-year median of 13.6.

P/E above the industry

Urban Outfitters's P/E of 13.5 is above the Family Clothing Stores median of 11.9.

EV/EBITDA above its 5-year median

Urban Outfitters's EV/EBITDA of 7.7 is above its 5-year median of 7.1.

P/B above the industry

Urban Outfitters's price-to-book of 2.59 is above the Family Clothing Stores median of 2.59.

Trading above fair value

The share price of $86.34 is above our fair value estimate of $75.46.

Margin of safety under 20%

The price is 14.4% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 8.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 43.8% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 19.7% over the last twelve months, against a 5-year average of 227% a year.

Growing faster than the industry

Revenue grew 11.0% over the last twelve months; the Family Clothing Stores median is 5.5%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin improving

Gross margin was 37.5% over the last twelve months, against 35.7% a year earlier.

Return on equity over 15%

Return on equity was 20.9% over the last twelve months and averaged 15.6% over five years.

Return on capital over 10%

Return on invested capital was 28.2%, above the 10% that usually covers the cost of capital.

Return on equity below the industry

Urban Outfitters's return on equity of 20.9% is below the Family Clothing Stores median of 40.5%.

Earnings grew over 5 years

Net income grew 227% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 8.8% over the last twelve months, against a 5-year average of 6.1%.

Net margin below the industry

Urban Outfitters's net margin of 8.8% is below the Family Clothing Stores median of 9.3%.

No debt

Urban Outfitters has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 1.58 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.63; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Urban Outfitters has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.