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LULULEMON ATHLETICA INC (LULU) Stock Fundamental Analysis

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

310.76  -9.7 (-3.03%)

After market: 310.8 +0.04 (+0.01%)

Fundamental Rating

7

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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LULU shows excellent growth, but is valued quite expensive already. With these ratings, LULU could be worth investigating further for growth and quality investing!.


Dividend Valuation Growth Profitability Health

9

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.
In the past 5 years LULU has always been profitable.
LULU had a positive operating cash flow in each of the past 5 years.
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 has a better Return On Assets (23.87%) than 97.92% of its industry peers.
The Return On Equity of LULU (41.97%) is better than 91.67% of its industry peers.
LULU has a Return On Invested Capital of 30.81%. This is amongst the best in the industry. LULU outperforms 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 13.46%.
The last Return On Invested Capital (30.81%) for LULU is above the 3 year average (29.73%), which is a sign of increasing profitability.
Industry RankSector 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%
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

Looking at the Profit Margin, with a value of 17.14%, LULU belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
LULU's Profit Margin has been stable in the last couple of years.
LULU's Operating Margin of 23.67% is amongst the best of the industry. LULU outperforms 93.75% of its industry peers.
LULU's Operating Margin has been stable in the last couple of years.
LULU has a better Gross Margin (59.22%) than 72.92% 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 23.67%
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%
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

9

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.
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.
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 10.62. This indicates that LULU is financially healthy and has little risk of bankruptcy at the moment.
LULU has a better Altman-Z score (10.62) than 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 10.62
ROIC/WACC3.46
WACC8.9%
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

A Current Ratio of 2.16 indicates that LULU has no problem at all paying its short term obligations.
The Current ratio of LULU (2.16) is better 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 RankSector Rank
Current Ratio 2.16
Quick Ratio 1.38
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

7

3. Growth

3.1 Past

LULU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.02%, which is quite good.
LULU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.37% yearly.
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

Based on estimates for the next years, LULU will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.54% on average per year.
Based on estimates for the next years, LULU will show a quite strong growth in Revenue. The Revenue will grow by 8.14% on average per year.
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.
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

3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 21.14, which indicates a rather expensive current valuation of LULU.
Compared to the rest of the industry, the Price/Earnings ratio of LULU is on the same level as its industry peers.
LULU's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.91.
The Price/Forward Earnings ratio is 20.60, which indicates a rather expensive current valuation of LULU.
LULU's Price/Forward Earnings ratio is in line with the industry average.
LULU is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.85, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 21.14
Fwd PE 20.6
LULU Price Earnings VS Forward Price EarningsLULU Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as LULU.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LULU is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 23.58
EV/EBITDA 12.37
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.
LULU has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)8.12
PEG (5Y)0.87
EPS Next 2Y5.54%
EPS Next 3Y6.31%

0

5. Dividend

5.1 Amount

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

LULULEMON ATHLETICA INC

NASDAQ:LULU (5/23/2025, 5:17:16 PM)

After market: 310.8 +0.04 (+0.01%)

310.76

-9.7 (-3.03%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)03-27 2025-03-27/amc
Earnings (Next)06-03 2025-06-03/amc
Inst Owners92.02%
Inst Owner Change3.65%
Ins Owners0.27%
Ins Owner Change3.82%
Market Cap37.34B
Analysts74.63
Price Target341.58 (9.92%)
Short Float %5.89%
Short Ratio2.56
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)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 RankSector Rank
PE 21.14
Fwd PE 20.6
P/S 3.53
P/FCF 23.58
P/OCF 16.43
P/B 8.63
P/tB 8.99
EV/EBITDA 12.37
EPS(TTM)14.7
EY4.73%
EPS(NY)15.08
Fwd EY4.85%
FCF(TTM)13.18
FCFY4.24%
OCF(TTM)18.92
OCFY6.09%
SpS88.12
BVpS35.99
TBVpS34.56
PEG (NY)8.12
PEG (5Y)0.87
Profitability
Industry RankSector 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 RankSector 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 10.62
F-Score8
WACC8.9%
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%