Is URBAN OUTFITTERS INC (URBN) Halal?

NASDAQ Consumer Cyclical United States $5.5B
✓ HALAL
Confidence: 95/100
URBAN OUTFITTERS INC (URBN) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 19.1% against the AAOIFI threshold of 30%, URBAN OUTFITTERS INC comfortably passes the key financial ratio tests. The company operates in the Consumer Cyclical sector (Apparel Retail), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from January 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 19.1%
/ 30%
10.6%
/ 30%
1.3%
/ 30%
0.67%
/ 5%
✓ HALAL
DJIM 19.1%
/ 33%
10.6%
/ 33%
1.3%
/ 33%
0.67%
/ 5%
✓ HALAL
MSCI 24.3%
/ 33%
13.5%
/ 33%
1.6%
/ 33%
0.67%
/ 5%
✓ HALAL
S&P 19.1%
/ 33%
10.6%
/ 33%
1.3%
/ 33%
0.67%
/ 5%
✓ HALAL
FTSE 24.3%
/ 33%
13.5%
/ 33%
1.6%
/ 50%
0.67%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
12.1
Forward: 9.6
EPS
$5.06
P/B Ratio
2.0
EV/EBITDA
8.2
EV: $6.0B
Revenue
$5.6B
Growth: 10.1%
Beta
1.2
High volatility
Current Ratio
1.5

Profitability

Gross Margin 36.0%
Operating Margin 8.8%
Net Margin 7.5%
Return on Equity (ROE) 17.6%
Return on Assets (ROA) 8.0%

Cash Flow & Balance Sheet

Operating Cash Flow$503M
Free Cash Flow$320M
Total Debt$1.1B
Debt-to-Equity43.5
Current Ratio1.5
Total Assets$4.5B

Price & Trading

Last Close$61.99
50-Day MA$67.46
200-Day MA$70.99
Avg Volume1.7M
Beta1.2
52-Week Range
$41.89
$84.35

About URBAN OUTFITTERS INC (URBN)

CEO
Mr. Richard A. Hayne
Sector
Consumer Cyclical
Industry
Apparel Retail
Country
United States
Exchange
NASDAQ
Market Cap
$5.5B
Currency
USD

Urban Outfitters, Inc. offers lifestyle products and services. 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.

Purification Calculator

As a halal stock with 0.67% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is URBAN OUTFITTERS INC (URBN) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), URBAN OUTFITTERS INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is URBAN OUTFITTERS INC's debt ratio?

URBAN OUTFITTERS INC's debt ratio is 19.1% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 24.3%.

Does URBAN OUTFITTERS INC require dividend purification?

Yes, URBAN OUTFITTERS INC has an impermissible income ratio of 0.67%, which means 0.67% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are URBAN OUTFITTERS INC's key financial metrics?

URBAN OUTFITTERS INC has a market capitalization of $5.5B, trailing P/E ratio of 12.1, and revenue of $5.6B. The company maintains a gross margin of 36.0% and a net margin of 7.5%. Return on equity stands at 17.6%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.