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LULULEMON ATHLETICA INC (LULU) Stock Fundamental Analysis

NASDAQ:LULU - Nasdaq - US5500211090 - Common Stock - Currency: USD

247.68  +1.38 (+0.56%)

After market: 248 +0.32 (+0.13%)

Fundamental Rating

7

LULU gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 48 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 has a correct valuation and a medium growth rate. With these ratings, LULU could be worth investigating further for quality investing!.


Dividend Valuation Growth Profitability Health

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9

1. Profitability

1.1 Basic Checks

In the past year LULU was profitable.
LULU had a positive operating cash flow in the past year.
LULU had positive earnings in each of the past 5 years.
Each year in the past 5 years LULU had a positive operating cash flow.
LULU Yearly Net Income VS EBIT VS OCF VS FCFLULU Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

1.2 Ratios

LULU's Return On Assets of 24.33% is amongst the best of the industry. LULU outperforms 97.92% of its industry peers.
LULU has a Return On Equity of 42.14%. This is amongst the best in the industry. LULU outperforms 93.75% of its industry peers.
Looking at the Return On Invested Capital, with a value of 30.39%, LULU belongs to the top of the industry, outperforming 97.92% of the companies in the same industry.
LULU had an Average Return On Invested Capital over the past 3 years of 29.73%. This is significantly above the industry average of 11.45%.
The 3 year average ROIC (29.73%) for LULU is below the current ROIC(30.39%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 24.33%
ROE 42.14%
ROIC 30.39%
ROA(3y)20.32%
ROA(5y)18.95%
ROE(3y)35.25%
ROE(5y)32.87%
ROIC(3y)29.73%
ROIC(5y)26.99%
LULU Yearly ROA, ROE, ROICLULU Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

LULU has a better Profit Margin (16.82%) than 95.83% of its industry peers.
In the last couple of years the Profit Margin of LULU has remained more or less at the same level.
With an excellent Operating Margin value of 23.37%, LULU belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
In the last couple of years the Operating Margin of LULU has remained more or less at the same level.
LULU has a better Gross Margin (59.34%) than 77.08% of its industry peers.
In the last couple of years the Gross Margin of LULU has remained more or less at the same level.
Industry RankSector Rank
OM 23.37%
PM (TTM) 16.82%
GM 59.34%
OM growth 3Y2.55%
OM growth 5Y1.15%
PM growth 3Y3.21%
PM growth 5Y1.1%
GM growth 3Y0.89%
GM growth 5Y1.17%
LULU Yearly Profit, Operating, Gross MarginsLULU Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

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9

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LULU is creating value.
LULU has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for LULU has been reduced compared to 5 years ago.
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.
LULU Yearly Shares OutstandingLULU Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M
LULU Yearly Total Debt VS Total AssetsLULU Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.2 Solvency

LULU has an Altman-Z score of 9.32. This indicates that LULU is financially healthy and has little risk of bankruptcy at the moment.
LULU has a Altman-Z score of 9.32. This is amongst the best in the industry. LULU outperforms 95.83% of its industry peers.
LULU has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 9.32
ROIC/WACC3.87
WACC7.86%
LULU Yearly LT Debt VS Equity VS FCFLULU Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.3 Liquidity

LULU has a Current Ratio of 2.28. This indicates that LULU is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.28, LULU is doing good in the industry, outperforming 62.50% of the companies in the same industry.
A Quick Ratio of 1.23 indicates that LULU should not have too much problems paying its short term obligations.
LULU has a Quick ratio of 1.23. This is comparable to the rest of the industry: LULU outperforms 45.83% of its industry peers.
Industry RankSector Rank
Current Ratio 2.28
Quick Ratio 1.23
LULU Yearly Current Assets VS Current LiabilitesLULU Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 13.19% over the past year.
Measured over the past years, LULU shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.37% on average per year.
The Revenue has grown by 9.39% in the past year. This is quite good.
LULU shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.62% yearly.
EPS 1Y (TTM)13.19%
EPS 3Y23.52%
EPS 5Y24.37%
EPS Q2Q%2.36%
Revenue 1Y (TTM)9.39%
Revenue growth 3Y19.17%
Revenue growth 5Y21.62%
Sales Q2Q%7.32%

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 11.19% yearly.
Based on estimates for the next years, LULU will show a small growth in Revenue. The Revenue will grow by 7.99% on average per year.
EPS Next Y1.72%
EPS Next 2Y4.82%
EPS Next 3Y6.29%
EPS Next 5Y11.19%
Revenue Next Year6.48%
Revenue Next 2Y6.82%
Revenue Next 3Y7.01%
Revenue Next 5Y7.99%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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.
LULU Yearly Revenue VS EstimatesLULU Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B 20B
LULU Yearly EPS VS EstimatesLULU Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10 20 30

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4

4. Valuation

4.1 Price/Earnings Ratio

LULU is valuated correctly with a Price/Earnings ratio of 16.78.
Compared to the rest of the industry, the Price/Earnings ratio of LULU indicates a somewhat cheap valuation: LULU is cheaper than 64.58% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of LULU to the average of the S&P500 Index (27.45), we can say LULU is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.34, LULU is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LULU is on the same level as its industry peers.
LULU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 16.78
Fwd PE 15.34
LULU Price Earnings VS Forward Price EarningsLULU Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

LULU's Enterprise Value to EBITDA is on the same level as the industry average.
LULU's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 22.62
EV/EBITDA 9.55
LULU Per share dataLULU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of LULU may justify a higher PE ratio.
PEG (NY)9.74
PEG (5Y)0.69
EPS Next 2Y4.82%
EPS Next 3Y6.29%

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0

5. Dividend

5.1 Amount

No dividends for LULU!.
Industry RankSector Rank
Dividend Yield N/A

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LULULEMON ATHLETICA INC

NASDAQ:LULU (7/3/2025, 7:45:34 PM)

After market: 248 +0.32 (+0.13%)

247.68

+1.38 (+0.56%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)06-05 2025-06-05/amc
Earnings (Next)08-27 2025-08-27/amc
Inst Owners96.5%
Inst Owner Change3.61%
Ins Owners0.3%
Ins Owner Change4.99%
Market Cap29.76B
Analysts74.63
Price Target313.74 (26.67%)
Short Float %4.86%
Short Ratio1.87
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.77%
Min EPS beat(2)-1.37%
Max EPS beat(2)2.91%
EPS beat(4)3
Avg EPS beat(4)2.92%
Min EPS beat(4)-1.37%
Max EPS beat(4)5.41%
EPS beat(8)7
Avg EPS beat(8)3.97%
EPS beat(12)10
Avg EPS beat(12)5.1%
EPS beat(16)14
Avg EPS beat(16)6.97%
Revenue beat(2)0
Avg Revenue beat(2)-1.17%
Min Revenue beat(2)-1.43%
Max Revenue beat(2)-0.92%
Revenue beat(4)0
Avg Revenue beat(4)-1.52%
Min Revenue beat(4)-3.46%
Max Revenue beat(4)-0.26%
Revenue beat(8)0
Avg Revenue beat(8)-1.32%
Revenue beat(12)4
Avg Revenue beat(12)-0.36%
Revenue beat(16)6
Avg Revenue beat(16)0.12%
PT rev (1m)-8.15%
PT rev (3m)-23.52%
EPS NQ rev (1m)-12.17%
EPS NQ rev (3m)-14.26%
EPS NY rev (1m)-0.86%
EPS NY rev (3m)-4.2%
Revenue NQ rev (1m)-0.46%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)-0.43%
Valuation
Industry RankSector Rank
PE 16.78
Fwd PE 15.34
P/S 2.77
P/FCF 22.62
P/OCF 14.69
P/B 6.94
P/tB 7.24
EV/EBITDA 9.55
EPS(TTM)14.76
EY5.96%
EPS(NY)16.15
Fwd EY6.52%
FCF(TTM)10.95
FCFY4.42%
OCF(TTM)16.86
OCFY6.81%
SpS89.47
BVpS35.7
TBVpS34.22
PEG (NY)9.74
PEG (5Y)0.69
Profitability
Industry RankSector Rank
ROA 24.33%
ROE 42.14%
ROCE 42.89%
ROIC 30.39%
ROICexc 39.27%
ROICexgc 40.88%
OM 23.37%
PM (TTM) 16.82%
GM 59.34%
FCFM 12.24%
ROA(3y)20.32%
ROA(5y)18.95%
ROE(3y)35.25%
ROE(5y)32.87%
ROIC(3y)29.73%
ROIC(5y)26.99%
ROICexc(3y)45.65%
ROICexc(5y)41.54%
ROICexgc(3y)46.74%
ROICexgc(5y)45.9%
ROCE(3y)41.97%
ROCE(5y)38.1%
ROICexcg growth 3Y-2.73%
ROICexcg growth 5Y3.8%
ROICexc growth 3Y3.22%
ROICexc growth 5Y3.16%
OM growth 3Y2.55%
OM growth 5Y1.15%
PM growth 3Y3.21%
PM growth 5Y1.1%
GM growth 3Y0.89%
GM growth 5Y1.17%
F-Score8
Asset Turnover1.45
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 152.77%
Cap/Sales 6.61%
Interest Coverage 250
Cash Conversion 68.04%
Profit Quality 72.77%
Current Ratio 2.28
Quick Ratio 1.23
Altman-Z 9.32
F-Score8
WACC7.86%
ROIC/WACC3.87
Cap/Depr(3y)181.68%
Cap/Depr(5y)168.92%
Cap/Sales(3y)7.05%
Cap/Sales(5y)6.53%
Profit Quality(3y)77.23%
Profit Quality(5y)86.23%
High Growth Momentum
Growth
EPS 1Y (TTM)13.19%
EPS 3Y23.52%
EPS 5Y24.37%
EPS Q2Q%2.36%
EPS Next Y1.72%
EPS Next 2Y4.82%
EPS Next 3Y6.29%
EPS Next 5Y11.19%
Revenue 1Y (TTM)9.39%
Revenue growth 3Y19.17%
Revenue growth 5Y21.62%
Sales Q2Q%7.32%
Revenue Next Year6.48%
Revenue Next 2Y6.82%
Revenue Next 3Y7.01%
Revenue Next 5Y7.99%
EBIT growth 1Y12.25%
EBIT growth 3Y22.21%
EBIT growth 5Y23.02%
EBIT Next Year21.76%
EBIT Next 3Y12.04%
EBIT Next 5Y10.61%
FCF growth 1Y122.59%
FCF growth 3Y16.77%
FCF growth 5Y32.6%
OCF growth 1Y61.42%
OCF growth 3Y17.83%
OCF growth 5Y27.7%