187.62 USD
+5.34 (+2.93%)
186.151 USD
-1.47 (-0.78%)
We assign a fundamental rating of 7 out of 10 to LULU. LULU was compared to 45 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 has a correct valuation and a medium growth rate. These ratings would make LULU suitable 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.
In the past 5 years LULU has always been profitable.
In the past 5 years LULU always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LULU (23.74%) is better than 97.78% of its industry peers.
With an excellent Return On Equity value of 40.70%, LULU belongs to the best of the industry, outperforming 91.11% of the companies in the same industry.
LULU has a Return On Invested Capital of 29.67%. This is amongst the best in the industry. LULU outperforms 95.56% 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 11.82%.
| 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 has a better Profit Margin (16.38%) than 97.78% of its industry peers.
In the last couple of years the Profit Margin of LULU has remained more or less at the same level.
With an excellent Operating Margin value of 22.92%, LULU belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
LULU's Operating Margin has been stable in the last couple of years.
LULU's Gross Margin of 59.10% is fine compared to the rest of the industry. LULU outperforms 75.56% 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
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 has been reduced compared to 1 year ago.
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 7.76. This indicates that LULU is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 7.76, LULU belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
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 | 7.76 |
ROIC/WACC2.88
WACC10.29%
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.
Looking at the Current ratio, with a value of 2.27, LULU is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Quick Ratio of 1.16 indicates that LULU should not have too much problems paying its short term obligations.
LULU's Quick ratio of 1.16 is fine compared to the rest of the industry. LULU outperforms 64.44% of its industry peers.
| 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.
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 9.16%.
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
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.
LULU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.77% yearly.
EPS Next Y-10.19%
EPS Next 2Y-5.98%
EPS Next 3Y-1.44%
EPS Next 5Y6.74%
Revenue Next Year3.97%
Revenue Next 2Y4.19%
Revenue Next 3Y4.64%
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
With a Price/Earnings ratio of 12.75, LULU is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of LULU indicates a somewhat cheap valuation: LULU is cheaper than 80.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of LULU to the average of the S&P500 Index (26.59), we can say LULU is valued rather cheaply.
With a Price/Forward Earnings ratio of 14.44, LULU is valued correctly.
Based on the Price/Forward Earnings ratio, LULU is valued a bit cheaper than the industry average as 68.89% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of LULU to the average of the S&P500 Index (23.80), we can say LULU is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.75 | ||
| Fwd PE | 14.44 |
4.2 Price Multiples
80.00% 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 68.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.05 | ||
| EV/EBITDA | 6.86 |
4.3 Compensation for Growth
LULU has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.52
EPS Next 2Y-5.98%
EPS Next 3Y-1.44%
5. Dividend
5.1 Amount
LULU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
187.62
+5.34 (+2.93%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners80.32%
Inst Owner Change-8.76%
Ins Owners0.32%
Ins Owner Change2.66%
Market Cap22.25B
Revenue(TTM)10.90B
Net Income(TTM)1.79B
Analysts65.64
Price Target206.85 (10.25%)
Short Float %6.43%
Short Ratio1.8
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)-0.08%
PT rev (3m)-26.04%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-24.81%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-10.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.24%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-1.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.75 | ||
| Fwd PE | 14.44 | ||
| P/S | 2.04 | ||
| P/FCF | 19.05 | ||
| P/OCF | 11.64 | ||
| P/B | 5.07 | ||
| P/tB | 5.29 | ||
| EV/EBITDA | 6.86 |
EPS(TTM)14.71
EY7.84%
EPS(NY)13
Fwd EY6.93%
FCF(TTM)9.85
FCFY5.25%
OCF(TTM)16.12
OCFY8.59%
SpS91.96
BVpS37
TBVpS35.46
PEG (NY)N/A
PEG (5Y)0.52
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 | 7.76 |
F-Score6
WACC10.29%
ROIC/WACC2.88
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-10.19%
EPS Next 2Y-5.98%
EPS Next 3Y-1.44%
EPS Next 5Y6.74%
Revenue 1Y (TTM)9.16%
Revenue growth 3Y19.17%
Revenue growth 5Y21.62%
Sales Q2Q%6.5%
Revenue Next Year3.97%
Revenue Next 2Y4.19%
Revenue Next 3Y4.64%
Revenue Next 5Y5.77%
EBIT growth 1Y8.67%
EBIT growth 3Y22.21%
EBIT growth 5Y23.02%
EBIT Next Year8.27%
EBIT Next 3Y1.95%
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 5 / 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 -10.19% in the next year.