LULULEMON ATHLETICA INC (LULU)
US5500211090 - Common Stock
We assign a fundamental rating of 7 out of 10 to LULU. LULU was compared to 51 industry peers in the Textiles, Apparel & Luxury Goods industry. LULU gets an excellent profitability rating and is at the same time showing great financial health properties. LULU is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes LULU very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year LULU was profitable.
In the past year LULU had a positive cash flow from operations.
In the past 5 years LULU has always been profitable.
In the past 5 years LULU always reported a positive cash flow from operatings.
1.2 Ratios
LULU has a Return On Assets of 24.21%. This is amongst the best in the industry. LULU outperforms 96.00% of its industry peers.
LULU's Return On Equity of 40.49% is amongst the best of the industry. LULU outperforms 94.00% of its industry peers.
The Return On Invested Capital of LULU (29.51%) is better than 96.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LULU is significantly above the industry average of 12.10%.
The 3 year average ROIC (27.36%) for LULU is below the current ROIC(29.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.21% | ||
| ROE | 40.49% | ||
| ROIC | 29.51% |
ROA(3y)18.95%
ROA(5y)18.12%
ROE(3y)33.12%
ROE(5y)31.09%
ROIC(3y)27.36%
ROIC(5y)24.43%
1.3 Margins
The Profit Margin of LULU (16.34%) is better than 96.00% of its industry peers.
In the last couple of years the Profit Margin of LULU has grown nicely.
LULU has a better Operating Margin (23.02%) than 98.00% of its industry peers.
In the last couple of years the Operating Margin of LULU has remained more or less at the same level.
LULU's Gross Margin of 58.54% is fine compared to the rest of the industry. LULU outperforms 78.00% of its industry peers.
LULU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.02% | ||
| PM (TTM) | 16.34% | ||
| GM | 58.54% |
OM growth 3Y5.93%
OM growth 5Y1.38%
PM growth 3Y6.4%
PM growth 5Y1.84%
GM growth 3Y1.37%
GM growth 5Y1.09%
2. Health
2.1 Basic Checks
LULU has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for LULU has been reduced compared to 1 year ago.
The number of shares outstanding for LULU has been reduced compared to 5 years ago.
LULU 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 10.65 indicates that LULU is not in any danger for bankruptcy at the moment.
LULU has a Altman-Z score of 10.65. This is amongst the best in the industry. LULU outperforms 94.00% of its industry peers.
There is no outstanding debt for LULU. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 10.65 |
ROIC/WACC3.67
WACC8.03%
2.3 Liquidity
A Current Ratio of 2.43 indicates that LULU has no problem at all paying its short term obligations.
The Current ratio of LULU (2.43) is comparable to the rest of the industry.
A Quick Ratio of 1.46 indicates that LULU should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.46, LULU is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.43 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
LULU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.93%, which is quite good.
The Earnings Per Share has been growing by 27.05% on average over the past years. This is a very strong growth
The Revenue has grown by 13.02% in the past year. This is quite good.
Measured over the past years, LULU shows a very strong growth in Revenue. The Revenue has been growing by 23.95% on average per year.
EPS 1Y (TTM)18.93%
EPS 3Y40.07%
EPS 5Y27.05%
EPS Q2Q%17.54%
Revenue 1Y (TTM)13.02%
Revenue growth 3Y29.77%
Revenue growth 5Y23.95%
Sales Q2Q%7.33%
3.2 Future
LULU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.50% yearly.
Based on estimates for the next years, LULU will show a quite strong growth in Revenue. The Revenue will grow by 11.04% on average per year.
EPS Next Y11.7%
EPS Next 2Y9.56%
EPS Next 3Y9.48%
EPS Next 5Y13.5%
Revenue Next Year9.05%
Revenue Next 2Y8.4%
Revenue Next 3Y8.55%
Revenue Next 5Y11.04%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.79, the valuation of LULU can be described as rather expensive.
LULU's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of LULU to the average of the S&P500 Index (29.62), we can say LULU is valued slightly cheaper.
LULU is valuated correctly with a Price/Forward Earnings ratio of 16.55.
LULU's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of LULU to the average of the S&P500 Index (21.22), we can say LULU is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.79 | ||
| Fwd PE | 16.55 |
4.2 Price Multiples
LULU's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LULU is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.34 | ||
| EV/EBITDA | 10.94 |
4.3 Compensation for Growth
LULU's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of LULU may justify a higher PE ratio.
PEG (NY)1.61
PEG (5Y)0.69
EPS Next 2Y9.56%
EPS Next 3Y9.48%
5. Dividend
5.1 Amount
LULU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LULULEMON ATHLETICA INC
NASDAQ:LULU (9/6/2024, 8:26:40 PM)
After market: 253.95 +0.11 (+0.04%)253.84
+0.14 (+0.06%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap31.17B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.79 | ||
| Fwd PE | 16.55 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.61
PEG (5Y)0.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.21% | ||
| ROE | 40.49% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.02% | ||
| PM (TTM) | 16.34% | ||
| GM | 58.54% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.43 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)18.93%
EPS 3Y40.07%
EPS 5Y
EPS Q2Q%
EPS Next Y11.7%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.02%
Revenue growth 3Y29.77%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y