LULULEMON ATHLETICA INC (1LUL.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1LUL - US5500211090 - Common Stock
172.82 EUR
-4.38 (-2.47%)
Taking everything into account, 1LUL scores 7 out of 10 in our fundamental rating. 1LUL was compared to 52 industry peers in the Textiles, Apparel & Luxury Goods industry. 1LUL scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 1LUL has a correct valuation and a medium growth rate. With these ratings, 1LUL could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
- 1LUL had positive earnings in the past year.
- In the past year 1LUL had a positive cash flow from operations.
- In the past 5 years 1LUL has always been profitable.
- Each year in the past 5 years 1LUL had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 21.88%, 1LUL belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
- 1LUL has a Return On Equity of 38.67%. This is amongst the best in the industry. 1LUL outperforms 90.38% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 28.30%, 1LUL belongs to the top of the industry, outperforming 94.23% of the companies in the same industry.
- 1LUL had an Average Return On Invested Capital over the past 3 years of 29.73%. This is significantly above the industry average of 11.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.88% | ||
| ROE | 38.67% | ||
| ROIC | 28.3% |
ROA(3y)20.32%
ROA(5y)18.95%
ROE(3y)35.25%
ROE(5y)32.87%
ROIC(3y)29.73%
ROIC(5y)26.99%
1.3 Margins
- With an excellent Profit Margin value of 15.72%, 1LUL belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.
- 1LUL's Profit Margin has been stable in the last couple of years.
- With an excellent Operating Margin value of 22.05%, 1LUL belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
- 1LUL's Operating Margin has been stable in the last couple of years.
- 1LUL has a Gross Margin of 58.41%. This is comparable to the rest of the industry: 1LUL outperforms 40.38% of its industry peers.
- In the last couple of years the Gross Margin of 1LUL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.05% | ||
| PM (TTM) | 15.72% | ||
| GM | 58.41% |
OM growth 3Y2.55%
OM growth 5Y1.15%
PM growth 3Y3.21%
PM growth 5Y1.1%
GM growth 3Y0.89%
GM growth 5Y1.17%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1LUL is creating value.
- Compared to 1 year ago, 1LUL has less shares outstanding
- Compared to 5 years ago, 1LUL has less shares outstanding
- 1LUL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 7.71 indicates that 1LUL is not in any danger for bankruptcy at the moment.
- The Altman-Z score of 1LUL (7.71) is better than 90.38% of its industry peers.
- 1LUL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 7.71 |
ROIC/WACC2.68
WACC10.57%
2.3 Liquidity
- A Current Ratio of 2.13 indicates that 1LUL has no problem at all paying its short term obligations.
- With a decent Current ratio value of 2.13, 1LUL is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- A Quick Ratio of 1.05 indicates that 1LUL should not have too much problems paying its short term obligations.
- 1LUL has a Quick ratio of 1.05. This is in the better half of the industry: 1LUL outperforms 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
- 1LUL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.19%.
- 1LUL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.37% yearly.
- The Revenue has grown by 8.76% in the past year. This is quite good.
- Measured over the past years, 1LUL shows a very strong growth in Revenue. The Revenue has been growing by 21.62% on average per year.
EPS 1Y (TTM)4.19%
EPS 3Y23.52%
EPS 5Y24.37%
EPS Q2Q%-9.76%
Revenue 1Y (TTM)8.76%
Revenue growth 3Y19.17%
Revenue growth 5Y21.62%
Sales Q2Q%7.06%
3.2 Future
- Based on estimates for the next years, 1LUL will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.56% on average per year.
- The Revenue is expected to grow by 6.73% on average over the next years.
EPS Next Y-9.04%
EPS Next 2Y-6.36%
EPS Next 3Y-1.39%
EPS Next 5Y8.56%
Revenue Next Year4.66%
Revenue Next 2Y4.55%
Revenue Next 3Y4.8%
Revenue Next 5Y6.73%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- 1LUL is valuated correctly with a Price/Earnings ratio of 14.28.
- Based on the Price/Earnings ratio, 1LUL is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
- 1LUL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
- Based on the Price/Forward Earnings ratio of 15.99, the valuation of 1LUL can be described as correct.
- Based on the Price/Forward Earnings ratio, 1LUL is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
- 1LUL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.28 | ||
| Fwd PE | 15.99 |
4.2 Price Multiples
- 1LUL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1LUL is cheaper than 63.46% of the companies in the same industry.
- 1LUL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.66 | ||
| EV/EBITDA | 7.97 |
4.3 Compensation for Growth
- The excellent profitability rating of 1LUL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.59
EPS Next 2Y-6.36%
EPS Next 3Y-1.39%
5. Dividend
5.1 Amount
- No dividends for 1LUL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
LULULEMON ATHLETICA INC / 1LUL.MI FAQ
Can you provide the ChartMill fundamental rating for LULULEMON ATHLETICA INC?
ChartMill assigns a fundamental rating of 7 / 10 to 1LUL.MI.
What is the valuation status of LULULEMON ATHLETICA INC (1LUL.MI) stock?
ChartMill assigns a valuation rating of 5 / 10 to LULULEMON ATHLETICA INC (1LUL.MI). This can be considered as Fairly Valued.
What is the profitability of 1LUL stock?
LULULEMON ATHLETICA INC (1LUL.MI) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for 1LUL stock?
The Price/Earnings (PE) ratio for LULULEMON ATHLETICA INC (1LUL.MI) is 14.28 and the Price/Book (PB) ratio is 5.43.
How financially healthy is LULULEMON ATHLETICA INC?
The financial health rating of LULULEMON ATHLETICA INC (1LUL.MI) is 9 / 10.