LULULEMON ATHLETICA INC (LULU) Stock Fundamental Analysis
NASDAQ:LULU - Nasdaq - US5500211090 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to LULU. LULU was compared to 48 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 not valued too expensively and it also shows a decent growth rate. With these ratings, LULU could be worth investigating further for 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.
Each year in the past 5 years LULU has been profitable.
LULU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LULU has a Return On Assets of 24.33%. This is amongst the best in 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.
The Return On Invested Capital of LULU (30.39%) is better than 97.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LULU is significantly above the industry average of 11.61%.
The 3 year average ROIC (29.73%) for LULU is below the current ROIC(30.39%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
The Profit Margin of LULU (16.82%) is better than 95.83% of its industry peers.
LULU's Profit Margin has been stable in the last couple of years.
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.
LULU's Operating Margin has been stable in the last couple of years.
LULU has a Gross Margin of 59.34%. This is in the better half of the industry: LULU outperforms 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 Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LULU is creating value.
The number of shares outstanding for LULU remains at a similar level 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
LULU has an Altman-Z score of 9.57. This indicates that LULU is financially healthy and has little risk of bankruptcy at the moment.
LULU's Altman-Z score of 9.57 is amongst the best of 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 9.57 |
ROIC/WACC3.36
WACC9.04%
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.
LULU has a better Current ratio (2.28) than 60.42% of its industry peers.
LULU has a Quick Ratio of 1.23. This is a normal value and indicates that LULU is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.23, LULU is in line with its industry, outperforming 45.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
LULU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.19%, which is quite good.
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.
LULU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.39%.
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
Based on estimates for the next years, LULU will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.19% on average per year.
The Revenue is expected to grow by 7.99% on average over the next years.
EPS Next Y2.6%
EPS Next 2Y5.54%
EPS Next 3Y6.94%
EPS Next 5Y11.19%
Revenue Next Year6.76%
Revenue Next 2Y7.04%
Revenue Next 3Y7.11%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.51, LULU is valued on the expensive side.
LULU's Price/Earnings ratio is in line with the industry average.
LULU's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.59.
With a Price/Forward Earnings ratio of 15.79, 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's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 15.79 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LULU.
LULU's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.61 | ||
| EV/EBITDA | 9.98 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LULU does not grow enough to justify the current Price/Earnings ratio.
LULU has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.73
PEG (5Y)0.72
EPS Next 2Y5.54%
EPS Next 3Y6.94%
5. Dividend
5.1 Amount
LULU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
258.5
-0.54 (-0.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners92.02%
Inst Owner Change3.61%
Ins Owners0.27%
Ins Owner Change3.82%
Market Cap31.06B
Analysts74.63
Price Target340.22 (31.61%)
Short Float %5.42%
Short Ratio2.31
Dividend
| Industry Rank | Sector 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)-1.09%
PT rev (3m)-17.25%
EPS NQ rev (1m)0.46%
EPS NQ rev (3m)-5.33%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)-3.37%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)-1.11%
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 15.79 | ||
| P/S | 2.89 | ||
| P/FCF | 23.61 | ||
| P/OCF | 15.33 | ||
| P/B | 7.24 | ||
| P/tB | 7.55 | ||
| EV/EBITDA | 9.98 |
EPS(TTM)14.76
EY5.71%
EPS(NY)16.37
Fwd EY6.33%
FCF(TTM)10.95
FCFY4.24%
OCF(TTM)16.86
OCFY6.52%
SpS89.47
BVpS35.7
TBVpS34.22
PEG (NY)6.73
PEG (5Y)0.72
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 9.57 |
F-Score8
WACC9.04%
ROIC/WACC3.36
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 Y2.6%
EPS Next 2Y5.54%
EPS Next 3Y6.94%
EPS Next 5Y11.19%
Revenue 1Y (TTM)9.39%
Revenue growth 3Y19.17%
Revenue growth 5Y21.62%
Sales Q2Q%7.32%
Revenue Next Year6.76%
Revenue Next 2Y7.04%
Revenue Next 3Y7.11%
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%