LULULEMON ATHLETICA INC (LULU) Stock Fundamental Analysis
USA - NASDAQ:LULU - US5500211090 - Common Stock
163.92 USD
+3.26 (+2.03%)
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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. LULU is not valued too expensively and it also shows a decent growth rate. These ratings could make LULU a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
LULU had positive earnings in the past year.
LULU had a positive operating cash flow in the past year.
LULU had positive earnings in each of the past 5 years.
In the past 5 years LULU always reported a positive cash flow from operatings.
1.2 Ratios
LULU has a better Return On Assets (23.74%) than 97.92% of its industry peers.
LULU has a better Return On Equity (40.70%) than 93.75% of its industry peers.
With an excellent Return On Invested Capital value of 29.67%, LULU belongs to the best of the industry, outperforming 95.83% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LULU is significantly above the industry average of 12.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.74% | ||
| ROE | 40.7% | ||
| ROIC | 29.67% |
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
Looking at the Profit Margin, with a value of 16.38%, LULU belongs to the top of the industry, outperforming 97.92% of the companies in the same industry.
In the last couple of years the Profit Margin of LULU has remained more or less at the same level.
The Operating Margin of LULU (22.92%) is better than 93.75% of its industry peers.
In the last couple of years the Operating Margin of LULU has remained more or less at the same level.
With a decent Gross Margin value of 59.10%, LULU is doing good in the industry, outperforming 77.08% of the companies in the same industry.
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 | 22.92% | ||
| PM (TTM) | 16.38% | ||
| GM | 59.1% |
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.
LULU has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, LULU has less shares outstanding
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 7.26 indicates that LULU is not in any danger for bankruptcy at the moment.
LULU has a better Altman-Z score (7.26) than 91.67% 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 | 7.26 |
ROIC/WACC2.97
WACC9.98%
2.3 Liquidity
LULU has a Current Ratio of 2.27. This indicates that LULU is financially healthy and has no problem in meeting its short term obligations.
LULU has a Current ratio of 2.27. This is in the better half of the industry: LULU outperforms 70.83% of its industry peers.
A Quick Ratio of 1.16 indicates that LULU should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.16, LULU is in line with its industry, outperforming 56.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.88% 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 9.16% in the past year. This is quite good.
The Revenue has been growing by 21.62% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)8.88%
EPS 3Y23.52%
EPS 5Y24.37%
EPS Q2Q%-1.59%
Revenue 1Y (TTM)9.16%
Revenue growth 3Y19.17%
Revenue growth 5Y21.62%
Sales Q2Q%6.5%
3.2 Future
Based on estimates for the next years, LULU will show a small growth in Earnings Per Share. The EPS will grow by 6.74% on average per year.
The Revenue is expected to grow by 5.77% on average over the next years.
EPS Next Y-10.24%
EPS Next 2Y-6%
EPS Next 3Y-1.65%
EPS Next 5Y6.74%
Revenue Next Year3.87%
Revenue Next 2Y4.16%
Revenue Next 3Y4.67%
Revenue Next 5Y5.77%
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 11.14 indicates a reasonable valuation of LULU.
79.17% of the companies in the same industry are more expensive than LULU, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of LULU to the average of the S&P500 Index (26.03), we can say LULU is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.62, LULU is valued correctly.
Based on the Price/Forward Earnings ratio, LULU is valued a bit cheaper than 68.75% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.27, LULU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.14 | ||
| Fwd PE | 12.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LULU is valued a bit cheaper than the industry average as 79.17% of the companies are valued more expensively.
LULU's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LULU is cheaper than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.64 | ||
| EV/EBITDA | 6 |
4.3 Compensation for Growth
LULU has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.46
EPS Next 2Y-6%
EPS Next 3Y-1.65%
5. Dividend
5.1 Amount
LULU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:LULU (11/5/2025, 9:58:08 AM)
163.92
+3.26 (+2.03%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners88.49%
Inst Owner Change-0.45%
Ins Owners0.32%
Ins Owner Change2.66%
Market Cap19.44B
Revenue(TTM)10.90B
Net Income(TTM)1.79B
Analysts65.64
Price Target207.02 (26.29%)
Short Float %7.4%
Short Ratio1.44
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)2.13%
Min EPS beat(2)-1.37%
Max EPS beat(2)5.62%
EPS beat(4)3
Avg EPS beat(4)2.97%
Min EPS beat(4)-1.37%
Max EPS beat(4)5.62%
EPS beat(8)7
Avg EPS beat(8)4.26%
EPS beat(12)10
Avg EPS beat(12)4.28%
EPS beat(16)14
Avg EPS beat(16)5.09%
Revenue beat(2)0
Avg Revenue beat(2)-1.96%
Min Revenue beat(2)-2.5%
Max Revenue beat(2)-1.43%
Revenue beat(4)0
Avg Revenue beat(4)-1.28%
Min Revenue beat(4)-2.5%
Max Revenue beat(4)-0.26%
Revenue beat(8)0
Avg Revenue beat(8)-1.59%
Revenue beat(12)3
Avg Revenue beat(12)-0.84%
Revenue beat(16)5
Avg Revenue beat(16)-0.43%
PT rev (1m)-4%
PT rev (3m)-33.19%
EPS NQ rev (1m)-2.44%
EPS NQ rev (3m)-25.63%
EPS NY rev (1m)-1%
EPS NY rev (3m)-11.34%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-3.25%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.14 | ||
| Fwd PE | 12.62 | ||
| P/S | 1.78 | ||
| P/FCF | 16.64 | ||
| P/OCF | 10.17 | ||
| P/B | 4.43 | ||
| P/tB | 4.62 | ||
| EV/EBITDA | 6 |
EPS(TTM)14.71
EY8.97%
EPS(NY)12.99
Fwd EY7.92%
FCF(TTM)9.85
FCFY6.01%
OCF(TTM)16.12
OCFY9.84%
SpS91.96
BVpS37
TBVpS35.46
PEG (NY)N/A
PEG (5Y)0.46
Graham Number110.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.74% | ||
| ROE | 40.7% | ||
| ROCE | 41.88% | ||
| ROIC | 29.67% | ||
| ROICexc | 36.8% | ||
| ROICexgc | 38.25% | ||
| OM | 22.92% | ||
| PM (TTM) | 16.38% | ||
| GM | 59.1% | ||
| FCFM | 10.71% |
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%
ROICexgc growth 3Y-2.73%
ROICexgc 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-Score6
Asset Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 154.46% | ||
| Cap/Sales | 6.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.15% | ||
| Profit Quality | 65.41% | ||
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 7.26 |
F-Score6
WACC9.98%
ROIC/WACC2.97
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)8.88%
EPS 3Y23.52%
EPS 5Y24.37%
EPS Q2Q%-1.59%
EPS Next Y-10.24%
EPS Next 2Y-6%
EPS Next 3Y-1.65%
EPS Next 5Y6.74%
Revenue 1Y (TTM)9.16%
Revenue growth 3Y19.17%
Revenue growth 5Y21.62%
Sales Q2Q%6.5%
Revenue Next Year3.87%
Revenue Next 2Y4.16%
Revenue Next 3Y4.67%
Revenue Next 5Y5.77%
EBIT growth 1Y8.67%
EBIT growth 3Y22.21%
EBIT growth 5Y23.02%
EBIT Next Year9.59%
EBIT Next 3Y5.94%
EBIT Next 5Y6.88%
FCF growth 1Y20.52%
FCF growth 3Y16.77%
FCF growth 5Y32.6%
OCF growth 1Y16.98%
OCF growth 3Y17.83%
OCF growth 5Y27.7%
LULULEMON ATHLETICA INC / LULU FAQ
What is the ChartMill fundamental rating of LULULEMON ATHLETICA INC (LULU) stock?
ChartMill assigns a fundamental rating of 7 / 10 to LULU.
What is the valuation status of LULULEMON ATHLETICA INC (LULU) stock?
ChartMill assigns a valuation rating of 6 / 10 to LULULEMON ATHLETICA INC (LULU). This can be considered as Fairly Valued.
Can you provide the profitability details for LULULEMON ATHLETICA INC?
LULULEMON ATHLETICA INC (LULU) has a profitability rating of 8 / 10.
What is the expected EPS growth for LULULEMON ATHLETICA INC (LULU) stock?
The Earnings per Share (EPS) of LULULEMON ATHLETICA INC (LULU) is expected to decline by -10.24% in the next year.