Quality Investor

Urban Outfitters, Inc.

Rank #115Capital Return

URBN · Nasdaq · Consumer Cyclical

Urban Outfitters, Inc. (URBN) — Rank #115 by gross profitability (GP/assets 0.43) · ROE 16.3% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0000912615 · all metrics point-in-time as of the filing date.

About

Urban Outfitters, Inc. offers lifestyle products and services in the United States and internationally.

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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.

Industry
Apparel Retail
Sector
Consumer Cyclical
State
PA
Filer Category
Large accelerated filer
Fiscal Year End
January 31
Website
urbn.com

Price History

URBN+144.0% · +19.5% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$6.51B

P/E (annual)

15.0

P/S (annual)

1.1

P/B

2.3

P/OCF (annual)

11.3

Shareholder Yield

2.8%

Employees

11,780

Industry

Apparel Retail

Exchange

Nasdaq

Signal Flags

4 green
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 1-quarter streak

Quality Profile

Profitability

1/1 pass
GP / assets
0.43
Return on equity
16.3%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.79
Current ratio
1.58×
Net cash
$716.13M

Cash Flow

2/3 pass
Positive FCF
PASS
Cash-backed earnings
WARN
Accruals healthy
PASS
SBC / revenue
0.5%

Growth

2/2 pass
Revenue growth
11.1%
Piotroski F-Score
N/A
Share dilution
-2.8%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

What Growth Is Priced In

Implied revenue growth (10Y)

9.1%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -2.8% — per-share value needs a total required return of 6.3% once share-count change is priced in.

vs. own 6-year median revenue growth: 7.6%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

4.7%

r = 10% (base)

9.1%

r = 12%

12.9%

Net debt / market cap: -10.3%

Base FCF: $315M3Y mean FCF: $315M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

12.6xFair
7.9xmed 13.7x3632.0x

P / S

Price / revenue per share

0.9xFair
0.4xmed 0.9x1.0x

P / B

Price / book value per share

2.1xFair
1.0xmed 2.1x2.7x

P / GP

Price / gross profit per share

2.6xFair
1.2xmed 2.5x4.2x

P / FCF

Price / free cash flow per share

18.6xFair
10.1xmed 15.7x28.3x

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.43

Primary signal (Novy-Marx).

4th of 6 SIC 56 peers

Return on equity

16.3%

Gross margin

36.0%

5th of 6 SIC 56 peers

Revenue growth (YoY)

11.1%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2023202420252026
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

8.7%

Revenue CAGR (5Y)

12.3%

Earnings CAGR (3Y)

42.8%

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.79

2nd of 6 SIC 56 peers (best = lowest)

Current ratio

1.58×

6th of 6 SIC 56 peers

Quick ratio

0.71×

Net cash

$716.13M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$315.02M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

-0.32

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.5%

Stock-based comp intensity.

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20212026
Decline
Hypergrowth
Capital Return
Value