Why LULULEMON ATHLETICA INC (NASDAQ:LULU) should be investigated by quality investors.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if LULULEMON ATHLETICA INC (NASDAQ:LULU) is suited for quality investing. Investors should of course do their own research, but we spotted LULULEMON ATHLETICA INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of LULULEMON ATHLETICA INC

• LULULEMON ATHLETICA INC has achieved substantial revenue growth over the past 5 years, with a 25.08% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• The ROIC excluding cash and goodwill of LULULEMON ATHLETICA INC stands at 38.83%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• The Debt/Free Cash Flow Ratio of LULULEMON ATHLETICA INC stands at 0.0, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• With a robust Profit Quality (5-year) ratio of 80.9%, LULULEMON ATHLETICA INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• LULULEMON ATHLETICA INC has experienced impressive EBIT growth over the past 5 years, with 28.79% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, LULULEMON ATHLETICA INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

What else is there to say on the fundamentals of NASDAQ:LULU?

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Overall LULU gets a fundamental rating of 7 out of 10. We evaluated LULU against 49 industry peers in the Textiles, Apparel & Luxury Goods industry. LULU has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LULU shows excellent growth, but is valued quite expensive already. These ratings would make LULU suitable for growth and quality investing!

Check the latest full fundamental report of LULU for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.