Urban Beneish M Score

URBN
 Stock
  

USD 22.29  0.52  2.28%   

This module uses fundamental data of Urban Outfitters to approximate the value of its Beneish M Score. Urban Outfitters M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Also, please take a look at Urban Outfitters Piotroski F Score and Urban Outfitters Altman Z Score analysis.
  
The value of Total Debt is estimated to slide to about 134.2 M. The value of Debt Non Current is estimated to slide to about 134.2 M. Urban Outfitters Return on Investment is quite stable at the moment as compared to the past year. The company's current value of Return on Investment is estimated at 27.02. Revenue to Assets is expected to rise to 1.51 this year, although the value of PPandE Turnover will most likely fall to 4.00.
At this time, it appears that Urban Outfitters is an unlikely manipulator. The earnings manipulation may begin if Urban Outfitters' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Urban Outfitters executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Urban Outfitters' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.23
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.3Focus
Asset Quality1.3Focus
Expense Coverage1.3Focus
Gross Margin Strengs1.14Focus
Accruals Factor1.3Focus
Depreciation Resistance0.77Focus
Net Sales Growth0.83Focus
Financial Leverage Condition1.0Focus

Urban Outfitters Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Urban Outfitters' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues3.8 B4.5 B
Significantly Down
Increasing
Slightly volatile
Selling General and Administrative Expense823.8 M763.5 M
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations395.4 M359.3 M
Significantly Up
Increasing
Very volatile
Depreciation Amortization and Accretion138.6 M128.4 M
Significantly Up
Increasing
Slightly volatile
Total Assets4.1 B3.8 B
Significantly Up
Increasing
Slightly volatile
Investments90.2 M87.9 M
Fairly Up
Decreasing
Slightly volatile
Investments Current80.7 M55 M
Way Up
Decreasing
Stable
Investments Non Current33.8 M32.9 M
Fairly Up
Decreasing
Slightly volatile
Property Plant and Equipment Net616.5 M776.8 M
Significantly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables73.5 M68.2 M
Significantly Up
Increasing
Slightly volatile
Total Liabilities2.2 BB
Significantly Up
Increasing
Slightly volatile
Current Assets1.1 B1.3 B
Fairly Down
Increasing
Slightly volatile
Assets Non Current753.6 M899 M
Fairly Down
Increasing
Stable
Current Liabilities1.1 B981.5 M
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current356.2 M330.2 M
Significantly Up
Increasing
Slightly volatile
Total Debt134.2 M135 M
Slightly Down
Decreasing
Slightly volatile
Debt Non Current134.2 M135 M
Slightly Down
Decreasing
Slightly volatile
Operating Income401.3 M408.6 M
Fairly Down
Decreasing
Stable
Gross Margin37.4232.843
Fairly Up
Decreasing
Slightly volatile

Urban Outfitters Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Urban Outfitters' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Urban Outfitters in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Urban Outfitters' degree of accounting gimmicks and manipulations.

About Urban Outfitters Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

138.59 Million

Urban Outfitters Depreciation Amortization and Accretion is quite stable at the moment as compared to the past year. The company's current value of Depreciation Amortization and Accretion is estimated at 138.59 Million

Urban Outfitters Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Urban Outfitters. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues3.62 B3.95 B3.98 B3.45 B4.55 B3.77 B
Total Assets1.95 B2.16 B3.32 B3.55 B3.79 B4.09 B
Current Assets978.76 M1.2 B1.05 B1.22 B1.29 B1.08 B
Total Liabilities651.88 M671.42 M1.86 B2.07 B2.05 B2.21 B
Current Liabilities360.21 M386.64 M638.77 M906.13 M981.47 M1.06 B
Operating Income259.89 M381.31 M231.93 M3.97 M408.57 M401.29 M
Gross Margin32.5134.0931.1224.9832.8437.42

About Urban Outfitters Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Urban Outfitters's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Urban Outfitters using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Urban Outfitters based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Urban Outfitters, Inc. engages in the retail and wholesale of general consumer products. The company was founded in 1970 and is based in Philadelphia, Pennsylvania. Urban Outfitters operates under Apparel Retail classification in the United States and is traded on NASDAQ Exchange. It employs 9660 people.

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Also, please take a look at Urban Outfitters Piotroski F Score and Urban Outfitters Altman Z Score analysis. Note that the Urban Outfitters information on this page should be used as a complementary analysis to other Urban Outfitters' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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Is Urban Outfitters' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Urban Outfitters. If investors know Urban will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Urban Outfitters listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.39
Market Capitalization
2.1 B
Quarterly Revenue Growth YOY
0.13
Return On Assets
0.066
Return On Equity
0.18
The market value of Urban Outfitters is measured differently than its book value, which is the value of Urban that is recorded on the company's balance sheet. Investors also form their own opinion of Urban Outfitters' value that differs from its market value or its book value, called intrinsic value, which is Urban Outfitters' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Urban Outfitters' market value can be influenced by many factors that don't directly affect Urban Outfitters' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Urban Outfitters' value and its price as these two are different measures arrived at by different means. Investors typically determine Urban Outfitters value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Urban Outfitters' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.