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 LULU highlighted

• LULU has achieved substantial revenue growth over the past 5 years, with a 21.62% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• The ROIC excluding cash and goodwill of LULU stands at 49.22%, 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.
• With a Debt/Free Cash Flow Ratio of 0.0, LULU 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.
• LULU exhibits impressive Profit Quality (5-year) with a 86.23% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• LULU has demonstrated consistent growth in EBIT over the past 5 years, with a strong 23.02%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• LULU has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

A complete fundamental analysis of LULU

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to LULU. LULU was compared to 50 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. This makes LULU very considerable for growth and quality investing!

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

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.