Why Quality-Oriented Investors Should Consider 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.

Highlighting Notable Quality Metrics of NASDAQ:LULU.

• LULULEMON ATHLETICA INC has achieved substantial revenue growth over the past 5 years, with a 23.95% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• With a notable ROIC excluding cash and goodwill at 41.13%, LULULEMON ATHLETICA INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• 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 favorable Profit Quality (5-year) ratio of 80.74%, LULULEMON ATHLETICA INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• LULULEMON ATHLETICA INC has consistently achieved strong EBIT growth over the past 5 years, with a 25.66% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• The EBIT 5-year growth of LULULEMON ATHLETICA INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Zooming in on the fundamentals.

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to LULU. 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. These ratings could make LULU a good candidate for growth and quality investing.

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

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.