Should Quality-Oriented Investors Explore LULULEMON ATHLETICA INC (NASDAQ:LULU)?

In this article we will dive into LULULEMON ATHLETICA INC (NASDAQ:LULU) as a possible candidate for quality investing. Investors should always do their own research, but we noticed LULULEMON ATHLETICA INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Some of the quality metrics of NASDAQ:LULU highlighted

• The 5-year revenue growth of LULULEMON ATHLETICA INC has been remarkable, with 25.08% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• With a robust ROIC excluding cash and goodwill at 38.83%, LULULEMON ATHLETICA INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• With a Debt/Free Cash Flow Ratio of 0.0, LULULEMON ATHLETICA INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• 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.
• The 5-year EBIT growth of LULULEMON ATHLETICA INC has been remarkable, with 28.79% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• LULULEMON ATHLETICA INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

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

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Taking everything into account, LULU scores 7 out of 10 in our fundamental rating. LULU was compared to 49 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the health and profitability get an excellent rating, making LULU a very profitable company, without any liquidiy or solvency issues. LULU is valued quite expensive, but it does show an excellent growth. This makes LULU very considerable for growth and quality investing!

Our latest full fundamental report of LULU contains the most current fundamental analsysis.

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

Disclaimer

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.