LULULEMON ATHLETICA INC (LULU) Stock Fundamental Analysis
NASDAQ:LULU - US5500211090 - Common Stock
165.82 USD
-1.98 (-1.18%)
LULU gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 49 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on LULU. With these ratings, LULU could be worth investigating further for value 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
With an excellent Return On Assets value of 24.33%, LULU belongs to the best of the industry, outperforming 97.96% of the companies in the same industry.
With an excellent Return On Equity value of 42.14%, LULU belongs to the best of the industry, outperforming 93.88% of the companies in the same industry.
With an excellent Return On Invested Capital value of 30.42%, LULU belongs to the best of the industry, outperforming 95.92% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LULU is significantly above the industry average of 12.18%.
The last Return On Invested Capital (30.42%) for LULU is above the 3 year average (29.73%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.33% | ||
| ROE | 42.14% | ||
| ROIC | 30.42% |
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 Profit Margin of 16.82%. This is amongst the best in the industry. LULU outperforms 97.96% of its industry peers.
LULU's Profit Margin has been stable in the last couple of years.
LULU's Operating Margin of 23.40% is amongst the best of the industry. LULU outperforms 93.88% of its industry peers.
LULU's Operating Margin has been stable in the last couple of years.
The Gross Margin of LULU (59.34%) is better than 77.55% of its industry peers.
LULU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.4% | ||
| 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 has been reduced compared to 1 year ago.
Compared to 5 years ago, LULU has less shares outstanding
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
LULU has an Altman-Z score of 7.49. This indicates that LULU is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.49, LULU belongs to the top of the industry, outperforming 91.84% of the companies in the same industry.
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 | 7.49 |
ROIC/WACC3.14
WACC9.7%
2.3 Liquidity
A Current Ratio of 2.28 indicates that LULU has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.28, LULU is in the better half of the industry, outperforming 69.39% of the companies in the same industry.
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.
The Quick ratio of LULU (1.23) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.19% over the past year.
LULU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.37% yearly.
LULU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.39%.
Measured over the past years, LULU shows a very strong growth in Revenue. The Revenue has been growing by 21.62% on average per year.
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 10.14% on average per year.
Based on estimates for the next years, LULU will show a small growth in Revenue. The Revenue will grow by 6.76% on average per year.
EPS Next Y0.54%
EPS Next 2Y3.51%
EPS Next 3Y4.14%
EPS Next 5Y10.14%
Revenue Next Year6.07%
Revenue Next 2Y6.42%
Revenue Next 3Y6.25%
Revenue Next 5Y6.76%
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
LULU is valuated reasonably with a Price/Earnings ratio of 11.23.
Compared to the rest of the industry, the Price/Earnings ratio of LULU indicates a rather cheap valuation: LULU is cheaper than 81.63% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.02, LULU is valued rather cheaply.
The Price/Forward Earnings ratio is 10.53, which indicates a very decent valuation of LULU.
Based on the Price/Forward Earnings ratio, LULU is valued cheaply inside the industry as 81.63% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.66, LULU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.23 | ||
| Fwd PE | 10.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LULU is valued a bit cheaper than 75.51% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LULU is valued a bit cheaper than 75.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.11 | ||
| EV/EBITDA | 6.31 |
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)20.83
PEG (5Y)0.46
EPS Next 2Y3.51%
EPS Next 3Y4.14%
5. Dividend
5.1 Amount
LULU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:LULU (9/9/2025, 3:02:06 PM)
165.82
-1.98 (-1.18%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners96.18%
Inst Owner Change-10.69%
Ins Owners0.31%
Ins Owner Change6.08%
Market Cap19.87B
Analysts73.85
Price Target279.69 (68.67%)
Short Float %6.74%
Short Ratio2.09
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)-9.74%
PT rev (3m)-17.79%
EPS NQ rev (1m)-0.46%
EPS NQ rev (3m)-1.92%
EPS NY rev (1m)-0.69%
EPS NY rev (3m)-2.01%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-0.77%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.23 | ||
| Fwd PE | 10.53 | ||
| P/S | 1.85 | ||
| P/FCF | 15.11 | ||
| P/OCF | 9.81 | ||
| P/B | 4.63 | ||
| P/tB | 4.83 | ||
| EV/EBITDA | 6.31 |
EPS(TTM)14.76
EY8.9%
EPS(NY)15.75
Fwd EY9.5%
FCF(TTM)10.98
FCFY6.62%
OCF(TTM)16.91
OCFY10.2%
SpS89.69
BVpS35.79
TBVpS34.31
PEG (NY)20.83
PEG (5Y)0.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.33% | ||
| ROE | 42.14% | ||
| ROCE | 42.93% | ||
| ROIC | 30.42% | ||
| ROICexc | 39.31% | ||
| ROICexgc | 40.92% | ||
| OM | 23.4% | ||
| 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 | 67.98% | ||
| Profit Quality | 72.77% | ||
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 7.49 |
F-Score8
WACC9.7%
ROIC/WACC3.14
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 Y0.54%
EPS Next 2Y3.51%
EPS Next 3Y4.14%
EPS Next 5Y10.14%
Revenue 1Y (TTM)9.39%
Revenue growth 3Y19.17%
Revenue growth 5Y21.62%
Sales Q2Q%7.32%
Revenue Next Year6.07%
Revenue Next 2Y6.42%
Revenue Next 3Y6.25%
Revenue Next 5Y6.76%
EBIT growth 1Y12.36%
EBIT growth 3Y22.21%
EBIT growth 5Y23.02%
EBIT Next Year19.97%
EBIT Next 3Y9.65%
EBIT Next 5Y9.02%
FCF growth 1Y122.59%
FCF growth 3Y16.77%
FCF growth 5Y32.6%
OCF growth 1Y61.42%
OCF growth 3Y17.83%
OCF growth 5Y27.7%