LULULEMON ATHLETICA INC (1LUL.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1LUL - US5500211090 - Common Stock
172.82 EUR
-4.38 (-2.47%)
Overall 1LUL gets a fundamental rating of 7 out of 10. We evaluated 1LUL against 51 industry peers in the Textiles, Apparel & Luxury Goods industry. 1LUL has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 1LUL has a decent growth rate and is not valued too expensively. These ratings could make 1LUL a good candidate 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
- 1LUL has a Return On Assets of 21.88%. This is amongst the best in the industry. 1LUL outperforms 94.12% of its industry peers.
- Looking at the Return On Equity, with a value of 38.67%, 1LUL belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 28.30%, 1LUL belongs to the top of the industry, outperforming 92.16% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for 1LUL is significantly above the industry average of 12.94%.
| 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 a decent Profit Margin value of 15.72%, 1LUL is doing good in the industry, outperforming 78.43% of the companies in the same industry.
- In the last couple of years the Profit Margin of 1LUL has remained more or less at the same level.
- With an excellent Operating Margin value of 22.05%, 1LUL belongs to the best of the industry, outperforming 82.35% 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 (58.41%) which is in line with 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.
- The number of shares outstanding for 1LUL has been reduced compared to 1 year ago.
- 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 7.63 indicates that 1LUL is not in any danger for bankruptcy at the moment.
- 1LUL has a Altman-Z score of 7.63. This is amongst the best in the industry. 1LUL outperforms 88.24% 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 | 7.63 |
ROIC/WACC2.65
WACC10.66%
2.3 Liquidity
- A Current Ratio of 2.13 indicates that 1LUL has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 2.13, 1LUL is in the better half of the industry, outperforming 68.63% of the companies in the same industry.
- 1LUL has a Quick Ratio of 1.05. This is a normal value and indicates that 1LUL is financially healthy and should not expect problems in meeting its short term obligations.
- 1LUL's Quick ratio of 1.05 is fine compared to the rest of the industry. 1LUL outperforms 62.75% 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%.
- Measured over the past years, 1LUL shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.37% on average per year.
- Looking at the last year, 1LUL shows a quite strong growth in Revenue. The Revenue has grown by 8.76% in the last year.
- The Revenue has been growing by 21.62% on average over the past years. This is a very strong growth!
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.
- 1LUL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.73% yearly.
EPS Next Y-9.05%
EPS Next 2Y-6.46%
EPS Next 3Y-1.37%
EPS Next 5Y8.56%
Revenue Next Year4.66%
Revenue Next 2Y4.5%
Revenue Next 3Y4.68%
Revenue Next 5Y6.73%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- A Price/Earnings ratio of 14.02 indicates a correct valuation of 1LUL.
- 84.31% of the companies in the same industry are more expensive than 1LUL, based on the Price/Earnings ratio.
- 1LUL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
- A Price/Forward Earnings ratio of 15.73 indicates a correct valuation of 1LUL.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1LUL indicates a somewhat cheap valuation: 1LUL is cheaper than 76.47% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, 1LUL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.02 | ||
| Fwd PE | 15.73 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1LUL is valued a bit cheaper than 68.63% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1LUL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.26 | ||
| EV/EBITDA | 7.82 |
4.3 Compensation for Growth
- The excellent profitability rating of 1LUL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.58
EPS Next 2Y-6.46%
EPS Next 3Y-1.37%
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 14.02 and the Price/Book (PB) ratio is 5.33.
How financially healthy is LULULEMON ATHLETICA INC?
The financial health rating of LULULEMON ATHLETICA INC (1LUL.MI) is 9 / 10.