LULULEMON ATHLETICA INC (LULU) Stock Fundamental Analysis
USA - NASDAQ:LULU - US5500211090 - Common Stock
165.865 USD
+1.9 (+1.16%)
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
In the past year LULU was profitable.
LULU had a positive operating cash flow in the past year.
LULU had positive earnings in each of the past 5 years.
LULU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of LULU (23.74%) is better than 97.92% of its industry peers.
LULU's Return On Equity of 40.70% is amongst the best of the industry. LULU outperforms 91.67% of its industry peers.
The Return On Invested Capital of LULU (29.67%) is better than 95.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LULU is significantly above the industry average of 12.21%.
| 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
LULU's Profit Margin of 16.38% is amongst the best of the industry. LULU outperforms 97.92% of its industry peers.
In the last couple of years the Profit Margin of LULU has remained more or less at the same level.
LULU has a better Operating Margin (22.92%) 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.
The Gross Margin of LULU (59.10%) is better than 77.08% of its industry peers.
LULU's Gross Margin has been stable in the last couple of years.
| 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
LULU has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, LULU has less shares outstanding
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 7.34. This indicates that LULU is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LULU (7.34) is better 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 | 7.34 |
ROIC/WACC3.18
WACC9.32%
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 better Current ratio (2.27) than 68.75% of its industry peers.
A Quick Ratio of 1.16 indicates that LULU should not have too much problems paying its short term obligations.
LULU has a Quick ratio (1.16) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
LULU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.88%, 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.
The Revenue has grown by 9.16% in the past year. This is quite good.
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)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
LULU is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.74% yearly.
Based on estimates for the next years, LULU will show a small growth in Revenue. The Revenue will grow by 5.77% on average per year.
EPS Next Y-10.2%
EPS Next 2Y-5.95%
EPS Next 3Y-1.3%
EPS Next 5Y6.74%
Revenue Next Year3.92%
Revenue Next 2Y4.21%
Revenue Next 3Y4.84%
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.
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 11.28, which indicates a very decent 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 (25.51), we can say LULU is valued rather cheaply.
LULU is valuated correctly with a Price/Forward Earnings ratio of 12.76.
Based on the Price/Forward Earnings ratio, LULU is valued a bit cheaper than 64.58% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, LULU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.28 | ||
| Fwd PE | 12.76 |
4.2 Price Multiples
77.08% of the companies in the same industry are more expensive than LULU, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LULU is valued a bit cheaper than the industry average as 72.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.84 | ||
| EV/EBITDA | 6.14 |
4.3 Compensation for Growth
The excellent profitability rating of LULU may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.46
EPS Next 2Y-5.95%
EPS Next 3Y-1.3%
5. Dividend
5.1 Amount
LULU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:LULU (11/19/2025, 2:43:48 PM)
165.865
+1.9 (+1.16%)
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-8.9%
Ins Owners0.32%
Ins Owner Change4%
Market Cap19.67B
Revenue(TTM)10.90B
Net Income(TTM)1.79B
Analysts65.64
Price Target207.02 (24.81%)
Short Float %6.79%
Short Ratio1.66
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)-2.73%
PT rev (3m)-30.84%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)-25.38%
EPS NY rev (1m)-0.95%
EPS NY rev (3m)-11.3%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-3.17%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-2.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.28 | ||
| Fwd PE | 12.76 | ||
| P/S | 1.8 | ||
| P/FCF | 16.84 | ||
| P/OCF | 10.29 | ||
| P/B | 4.48 | ||
| P/tB | 4.68 | ||
| EV/EBITDA | 6.14 |
EPS(TTM)14.71
EY8.87%
EPS(NY)13
Fwd EY7.84%
FCF(TTM)9.85
FCFY5.94%
OCF(TTM)16.12
OCFY9.72%
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 | 7.34 |
F-Score6
WACC9.32%
ROIC/WACC3.18
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-10.2%
EPS Next 2Y-5.95%
EPS Next 3Y-1.3%
EPS Next 5Y6.74%
Revenue 1Y (TTM)9.16%
Revenue growth 3Y19.17%
Revenue growth 5Y21.62%
Sales Q2Q%6.5%
Revenue Next Year3.92%
Revenue Next 2Y4.21%
Revenue Next 3Y4.84%
Revenue Next 5Y5.77%
EBIT growth 1Y8.67%
EBIT growth 3Y22.21%
EBIT growth 5Y23.02%
EBIT Next Year9.59%
EBIT Next 3Y4.55%
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 -10.2% in the next year.