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Urban Outfitters, Inc. (URBN)

Undervalued
Consumer CyclicalApparel RetailUnited States

Fundamental

82

Price

$76.38

Market Cap

$6.54B

Part 1 · What the company is worth

Overview

Urban Outfitters, Inc. offers lifestyle products and services in the United States and internationally. The company operates through three segments: Retail, Wholesale, and Subscription. It operates Urban Outfitters stores, which offer women's and men's fashion apparel, activewear, intimates, footwear, accessories, home goods, electronics, and beauty products for young adults aged 18 to 28; and Anthropologie stores that provide women's apparel, accessories, intimates, shoes, furniture, home décor, and beauty and wellness products, as well as gifts and decorative items for women aged 28 to 45. The company also operates Terrain stores that provide lifestyle home products, garden and outdoor living products, antiques, live plants, flowers, wellness products, and accessories. In addition, it operates Free People retail stores, which offer casual women's apparel, intimates, activewear, shoes, accessories, home products, gifts, and beauty and wellness products for young women aged 25 to 30; and restaurants and event venues, as well as women's apparel subscription rental service under the Nuuly brand. Further, the company designs, develops, and markets young women's contemporary casual apparel, intimates, activewear, and shoes under the Free People and FP Movement brands; and apparel collections under the Urban Outfitters brand. It serves its customers directly through retail stores, websites, mobile applications, catalogs and customer contact centers, franchisee-owned stores, and department and specialty stores, as well as social media and third-party digital platforms. Urban Outfitters, Inc. was founded in 1970 and is based in Philadelphia, Pennsylvania.

No editorial profile for this company yet

Direct competitors

Who this company fights with for the same customers

No editorial profile for this company yet

No competitor list for this company yet.

Balance Sheet & Liquidity

Revenue

$6.47B

Trailing 12 months (through 7/31/2026)

Net Income

$569M

Trailing 12 months (through 7/31/2026)

Free Cash Flow

$315M

Total Equity

$2.82B

Total Liabilities

$2.19B

Current Ratio

1.58

Interest Coverage

123.20

Debt/EBITDA

1.65

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseUndervalued

Fair Value

$123.20

Current Price

$76.38

Margin of Safety

+38.0%

Fair Value Range

$80.08 - $166.32

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$89.43
Discounted cash flow (DCF):$110.51
Earnings multiple (P/E):$71.68
Graham growth formula:$328.96
Earnings power value (EPV):$58.05
Justified P/B:$63.63
Dividend discount (Gordon):Not enough data to compute it
P/FFO, funds from operations:$110.85
Mid-cycle earnings:$100.72
Revenue multiple:$128.05
Analyst Consensus:Buy (13B / 8H / 0S)
Last Earnings Surprise:-2.48%

Valuation Metrics

P/E Ratio

11.93

ROE

16.5%

P/B Ratio

2.29

P/FCF

22.16

Gross Margin

37.5%

ROIC

14.6%

Profitability Radar

Value Creation (Economic Moat)

ROIC

14.6%

WACC

9.7%

ROIC − WACC

+4.8 pp

ROIC exceeds the cost of capital — the company is creating value for shareholders.

Fundamental Analysis Criteria

Passed (23)

  • EPS shows upward trend
  • EPS CAGR 9.00%
  • Price CAGR 10.14%
  • ROIC 14.6%
  • Gross Margin 37.5%
  • P/FCF 22.16
  • P/B Ratio 2.29
  • Debt/Equity ratio
  • Operating Margin 11.3%
  • Positive Free Cash Flow
  • Current Ratio
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • Low reliance on intangibles
  • ROE 20.7%
  • Revenue Growth 5Y 12.3%
  • Analyst Consensus 62% Buy
  • PEG Ratio 0.05
  • Earnings Quality (OCF/NI) 1.26
  • Share Dilution -2.7%
  • Net Margin Trend 8.8% vs 8.2%
  • Piotroski F-Score 9/9

Failed (4)

  • CapEx intensity
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Earnings Surprise avg -1.1%

Unavailable (1)

  • Dividend Payout NaN%

Piotroski F-Score

9/9

Strong financial health

score
criteria

Earnings Quality

1.26

High quality: earnings backed by cash

Share Dilution

-2.7%

Buying back shares. Shareholder friendly

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. Richard A. HayneCo-Founder, Chairman & CEO77
Ms. Margaret A. HayneChief Creative Officer, Co-President & Director67
Mr. Francis J. Conforti CPACOO & Co-President49
Ms. Melanie Marein-Efron CPAChief Financial Officer55
Ms. Sheila B. HarringtonGlobal CEO Urban Outfitters Group & CEO of Free People Group52
Mr. David A. HayneChief Technology Officer & President of Nuuly-
Mr. Azeez HayneChief Administrative Officer48
Ms. Oona McCulloughExecutive Director of Investor Relations-
Ms. Emma WisdenManaging Director of Urban Outfitters Europe-
Ms. Shea JensenPresident of Urban Outfitters Brand of North America-

Audit Risk

7

Board Risk

5

Compensation Risk

4

Shareholder Rights Risk

1

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-04-01

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-09-09

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-08-27

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for URBN, sourced from Markets Gazette.

  • 3/9/2026NEUTRAL
    An Urban Outfitters Co-President Sold Over 11,000 Company Shares. Is the Stock a Buy or Sell?

    An Urban Outfitters Co-President has sold over 11,000 shares of the company's stock. This transaction is described as a routine ownership adjustment by the specialty retailer. While insider selling can sometimes signal a lack of confidence, routine sales by executives are common and often do not represent a significant change in the company's fundamental outlook. Investors should consider this sale within the broader context of the company's performance and market conditions before making investment decisions.

  • 2/22/2026NEGATIVE
    Urban Outfitters CCO Sells 18,666 Shares for $1.3 Million

    A potentially bearish signal is emerging from Urban Outfitters, where the Chief Creative Officer (CCO) has liquidated a significant portion of their stock holdings. The transaction involved the sale of 18,666 shares, for a total value of approximately $1.3 million. This move is not an isolated event but is part of a broader selling trend by the founding Hayne family observed in recent months. Substantial sales by top executives are often interpreted by the market as an indicator of a lack of confidence in the company's short-term growth prospects or a belief that the stock has reached its full valuation. Investors will be closely watching the reaction of URBN stock, as such transactions can trigger increased selling pressure and raise questions about the company's future trajectory.

via Markets Gazette