Urban Outfitters (URBN) Down In After-Hours Trading

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Urban Outfitters ( URBN) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Urban Outfitters as such a stock due to the following factors:

  • URBN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $64.9 million.
  • URBN is down 3.1% today from today's close.

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More details on URBN:

Urban Outfitters, Inc., a lifestyle specialty retail company, is engaged in the retail and wholesale of general consumer products. The company operates in two segments, Retail and Wholesale. URBN has a PE ratio of 17.6. Currently there are 16 analysts that rate Urban Outfitters a buy, no analysts rate it a sell, and 10 rate it a hold.

The average volume for Urban Outfitters has been 2.3 million shares per day over the past 30 days. Urban Outfitters has a market cap of $4.3 billion and is part of the services sector and retail industry. The stock has a beta of 0.66 and a short float of 4.9% with 2.55 days to cover. Shares are down 16.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Urban Outfitters as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • URBN's revenue growth has slightly outpaced the industry average of 1.1%. Since the same quarter one year prior, revenues slightly increased by 7.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • URBN has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.88 is somewhat weak and could be cause for future problems.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Specialty Retail industry and the overall market on the basis of return on equity, URBAN OUTFITTERS INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • 41.62% is the gross profit margin for URBAN OUTFITTERS INC which we consider to be strong. Regardless of URBN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, URBN's net profit margin of 8.32% compares favorably to the industry average.


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