LULULEMON ATHLETICA INC (LULU) Stock Fundamental Analysis
NASDAQ:LULU - Nasdaq - US5500211090 - Common Stock - Currency: USD
Taking everything into account, LULU scores 7 out of 10 in our fundamental rating. LULU was compared to 48 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the health and profitability get an excellent rating, making LULU a very profitable company, without any liquidiy or solvency issues. LULU is valued quite expensively, but it does show have an excellent growth rating. These ratings would make LULU suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year LULU was profitable.
LULU had a positive operating cash flow in the past year.
Each year in the past 5 years LULU has been profitable.
Each year in the past 5 years LULU had a positive operating cash flow.
1.2 Ratios
LULU has a Return On Assets of 23.87%. This is amongst the best in the industry. LULU outperforms 97.92% of its industry peers.
LULU has a better Return On Equity (41.97%) than 91.67% of its industry peers.
LULU's Return On Invested Capital of 30.81% is amongst the best of the industry. LULU outperforms 97.92% of its industry peers.
LULU had an Average Return On Invested Capital over the past 3 years of 29.73%. This is significantly above the industry average of 13.46%.
The 3 year average ROIC (29.73%) for LULU is below the current ROIC(30.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.87% | ||
| ROE | 41.97% | ||
| ROIC | 30.81% |
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
LULU has a better Profit Margin (17.14%) than 93.75% of its industry peers.
In the last couple of years the Profit Margin of LULU has remained more or less at the same level.
Looking at the Operating Margin, with a value of 23.67%, LULU belongs to the top 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.
Looking at the Gross Margin, with a value of 59.22%, LULU is in the better half of the industry, outperforming 72.92% 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 | 23.67% | ||
| PM (TTM) | 17.14% | ||
| GM | 59.22% |
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 LULU is creating value.
The number of shares outstanding for LULU remains at a similar level compared to 1 year ago.
LULU has less shares outstanding than it did 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.
2.2 Solvency
An Altman-Z score of 10.69 indicates that LULU is not in any danger for bankruptcy at the moment.
LULU's Altman-Z score of 10.69 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 | 10.69 |
ROIC/WACC3.46
WACC8.91%
2.3 Liquidity
A Current Ratio of 2.16 indicates that LULU has no problem at all paying its short term obligations.
LULU has a better Current ratio (2.16) than 60.42% of its industry peers.
A Quick Ratio of 1.38 indicates that LULU should not have too much problems paying its short term obligations.
The Quick ratio of LULU (1.38) is better than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.02% 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.
Looking at the last year, LULU shows a quite strong growth in Revenue. The Revenue has grown by 10.07% in the last year.
LULU shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.62% yearly.
EPS 1Y (TTM)15.02%
EPS 3Y23.52%
EPS 5Y24.37%
EPS Q2Q%16.07%
Revenue 1Y (TTM)10.07%
Revenue growth 3Y19.17%
Revenue growth 5Y21.62%
Sales Q2Q%12.68%
3.2 Future
The Earnings Per Share is expected to grow by 11.54% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.14% on average over the next years. This is quite good.
EPS Next Y2.6%
EPS Next 2Y5.54%
EPS Next 3Y6.31%
EPS Next 5Y11.54%
Revenue Next Year6.1%
Revenue Next 2Y6.7%
Revenue Next 3Y6.67%
Revenue Next 5Y8.14%
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 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
The Price/Earnings ratio is 22.26, which indicates a rather expensive current valuation of LULU.
LULU's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of LULU to the average of the S&P500 Index (26.60), we can say LULU is valued inline with the index average.
A Price/Forward Earnings ratio of 21.69 indicates a rather expensive valuation of LULU.
LULU's Price/Forward Earnings is on the same level as the industry average.
LULU's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.26 | ||
| Fwd PE | 21.69 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LULU is on the same level as its industry peers.
LULU's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.82 | ||
| EV/EBITDA | 12.5 |
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)8.55
PEG (5Y)0.91
EPS Next 2Y5.54%
EPS Next 3Y6.31%
5. Dividend
5.1 Amount
LULU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
327.17
+3.47 (+1.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners92.02%
Inst Owner Change3.65%
Ins Owners0.27%
Ins Owner Change3.82%
Market Cap39.31B
Analysts74.63
Price Target341.58 (4.4%)
Short Float %5.89%
Short Ratio2.56
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)2
Avg EPS beat(2)3.81%
Min EPS beat(2)2.91%
Max EPS beat(2)4.71%
EPS beat(4)4
Avg EPS beat(4)4.38%
Min EPS beat(4)2.91%
Max EPS beat(4)5.41%
EPS beat(8)8
Avg EPS beat(8)5.78%
EPS beat(12)11
Avg EPS beat(12)5.32%
EPS beat(16)15
Avg EPS beat(16)8.62%
Revenue beat(2)0
Avg Revenue beat(2)-0.59%
Min Revenue beat(2)-0.92%
Max Revenue beat(2)-0.26%
Revenue beat(4)0
Avg Revenue beat(4)-1.49%
Min Revenue beat(4)-3.46%
Max Revenue beat(4)-0.26%
Revenue beat(8)1
Avg Revenue beat(8)-0.9%
Revenue beat(12)5
Avg Revenue beat(12)0.03%
Revenue beat(16)7
Avg Revenue beat(16)0.61%
PT rev (1m)-9.26%
PT rev (3m)-15.4%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)-5.76%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)-3.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.27%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.26 | ||
| Fwd PE | 21.69 | ||
| P/S | 3.71 | ||
| P/FCF | 24.82 | ||
| P/OCF | 17.3 | ||
| P/B | 9.09 | ||
| P/tB | 9.47 | ||
| EV/EBITDA | 12.5 |
EPS(TTM)14.7
EY4.49%
EPS(NY)15.08
Fwd EY4.61%
FCF(TTM)13.18
FCFY4.03%
OCF(TTM)18.92
OCFY5.78%
SpS88.12
BVpS35.99
TBVpS34.56
PEG (NY)8.55
PEG (5Y)0.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.87% | ||
| ROE | 41.97% | ||
| ROCE | 43.49% | ||
| ROIC | 30.81% | ||
| ROICexc | 46.99% | ||
| ROICexgc | 49.22% | ||
| OM | 23.67% | ||
| PM (TTM) | 17.14% | ||
| GM | 59.22% | ||
| FCFM | 14.96% |
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 Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 154.35% | ||
| Cap/Sales | 6.51% | ||
| Interest Coverage | 5244.14 | ||
| Cash Conversion | 76.96% | ||
| Profit Quality | 87.26% | ||
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 10.69 |
F-Score8
WACC8.91%
ROIC/WACC3.46
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)15.02%
EPS 3Y23.52%
EPS 5Y24.37%
EPS Q2Q%16.07%
EPS Next Y2.6%
EPS Next 2Y5.54%
EPS Next 3Y6.31%
EPS Next 5Y11.54%
Revenue 1Y (TTM)10.07%
Revenue growth 3Y19.17%
Revenue growth 5Y21.62%
Sales Q2Q%12.68%
Revenue Next Year6.1%
Revenue Next 2Y6.7%
Revenue Next 3Y6.67%
Revenue Next 5Y8.14%
EBIT growth 1Y13.57%
EBIT growth 3Y22.21%
EBIT growth 5Y23.02%
EBIT Next Year23.55%
EBIT Next 3Y11.48%
EBIT Next 5Y11.1%
FCF growth 1Y-3.7%
FCF growth 3Y16.77%
FCF growth 5Y32.6%
OCF growth 1Y-1.02%
OCF growth 3Y17.83%
OCF growth 5Y27.7%