Urban Outfitters, Inc. – Value Analysis (NASDAQ:URBN) : May 12, 2017

Capitalcube gives Urban Outfitters, Inc. a score of 78.

Our analysis is based on comparing Urban Outfitters, Inc. with the following peers – Nordstrom, Inc., American Eagle Outfitters, Inc., Gap, Inc., Buckle, Inc., Abercrombie & Fitch Co. Class A, TJX Companies Inc, Zumiez Inc., Express, Inc., Tilly’s, Inc. Class A and Guess?, Inc. (JWN-US, AEO-US, GPS-US, BKE-US, ANF-US, TJX-US, ZUMZ-US, EXPR-US, TLYS-US and GES-US).

Investment Outlook

Urban Outfitters, Inc. has a fundamental score of 78 and has a relative valuation of NEUTRAL.

Fundamental Score

Access our research and ratings on Urban Outfitters, Inc.

Company Overview

  • From a peer analysis angle, relative underperformance over the last year has improved more recently.
  • It’s current Price/Book of 2.04 is about median in its peer group.
  • The market expects URBN-US to grow at about the same rate as the peers and to maintain the median returns it currently generates.
  • URBN-US has relatively high profit margins while operating with median asset turns.
  • The company’s year-on-year change in revenues and earnings are better than the median among its peer group.
  • URBN-US‘s return on assets currently and over the past five years suggest that its relatively high operating returns are sustainable.
  • The company’s relatively high pre-tax margin suggests tight control on operating costs versus peers.
  • While URBN-US‘s revenues in recent years have grown faster than the peer median, the market gives the stock a P/E ratio that is around peer median suggesting that the market has some questions about the company’s long-term strategy.
  • The company’s level of capital investment is relatively low and suggests it is milking the business.
  • URBN-US currently does not have any debt.

Access our research and ratings on Urban Outfitters, Inc.

Leverage & Liquidity

URBN-US currently does not have any debt.

  • We consider the company to have a Quick & Able profile as it currently does not have any debt. In comparison, the median level of debt as percent of enterprise value for its peer group is currently 3.55%.
  • Of the 10 chosen peers for the company, only 7 of the stocks have an outstanding debt balance. Companies with no debt include AEO-US, BKE-US and ZUMZ-US.

Access the detailed analysis for Urban Outfitters, Inc.

Key Liquidity Items

Company Debt/Enterprise Value (%) Current Ratio Interest Coverage (x) Cash Flow To Total Debt (%)
Nordstrom, Inc. 31.83 1.01 7.54 41.61
American Eagle Outfitters, Inc. 0 1.83 0 999
Gap, Inc. 15.45 1.76 17.5 91.85
Buckle, Inc. 0 3.92 No interest exp 999
Abercrombie & Fitch Co. Class A 57.24 2.34 -0.35 63.63
TJX Companies Inc 5.12 1.63 55.85 149.32
Zumiez Inc. 0 2.87 No interest exp 999
Express, Inc. 10.4 1.82 8.08 259.23
Tilly’s, Inc. Class A 0.4 2.99 0 3015.59
Guess?, Inc. 3.55 3.02 41.32 817.24
Urban Outfitters, Inc. 0 2.5 0 499.46
Peer Median 3.55 2.34 29.41 499.46
Best In Class 0.4 3.92 No interest exp 3015.59

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Company Profile

Urban Outfitters, Inc. engages in the operation of retail clothing stores. It operates through the following segments: Retail and Wholesale. The Retail segment offers merchandise directly through stores, catalogues, call centers, & websites, and consists of the brands Urban Outfitters, Anthropologie, Free People, Terrain, and Bhldn. The Wholesale segment designs, develops, and distributes women’s casual wear under the Free People brand. The company was founded by Richard A. Hayne and Scott A. Belair in 1970 and is headquartered at Philadelphia, PA.


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