LULULEMON ATHLETICA INC (LULU)
US5500211090 - Common Stock
Overall LULU gets a fundamental rating of 7 out of 10. We evaluated LULU against 50 industry peers in the Textiles, Apparel & Luxury Goods industry. LULU gets an excellent profitability rating and is at the same time showing great financial health properties. LULU is valued quite expensive, but it does show an excellent growth. These ratings could make LULU a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
LULU had positive earnings in the past year.
In the past year LULU had a positive cash flow from operations.
Each year in the past 5 years LULU has been profitable.
LULU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 21.86%, LULU belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 36.63%, LULU belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
The Return On Invested Capital of LULU (27.36%) is better than 98.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LULU is significantly above the industry average of 10.04%.
The last Return On Invested Capital (27.36%) for LULU is above the 3 year average (27.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.86% | ||
| ROE | 36.63% | ||
| ROIC | 27.36% |
ROA(3y)18.95%
ROA(5y)18.12%
ROE(3y)33.12%
ROE(5y)31.09%
ROIC(3y)27.36%
ROIC(5y)24.43%
1.3 Margins
LULU has a Profit Margin of 16.12%. This is amongst the best in the industry. LULU outperforms 94.00% of its industry peers.
In the last couple of years the Profit Margin of LULU has grown nicely.
The Operating Margin of LULU (22.95%) is better than 98.00% 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 (58.31%) is better than 82.00% of its industry peers.
LULU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.95% | ||
| PM (TTM) | 16.12% | ||
| GM | 58.31% |
OM growth 3Y5.93%
OM growth 5Y1.38%
PM growth 3Y6.4%
PM growth 5Y1.84%
GM growth 3Y1.37%
GM growth 5Y1.09%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LULU is creating value.
LULU has less shares outstanding than it did 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 12.70 indicates that LULU is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 12.70, LULU belongs to the best of the industry, outperforming 96.00% 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 | 12.7 |
ROIC/WACC3.26
WACC8.39%
2.3 Liquidity
A Current Ratio of 2.49 indicates that LULU has no problem at all paying its short term obligations.
LULU has a Current ratio (2.49) which is comparable to the rest of the industry.
A Quick Ratio of 1.68 indicates that LULU should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.68, LULU is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.49 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
LULU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.79%, which is quite impressive.
The Earnings Per Share has been growing by 27.05% on average over the past years. This is a very strong growth
LULU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.60%.
The Revenue has been growing by 23.95% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)26.79%
EPS 3Y40.07%
EPS 5Y27.05%
EPS growth Q2Q20.23%
Revenue 1Y (TTM)18.6%
Revenue growth 3Y29.77%
Revenue growth 5Y23.95%
Revenue growth Q2Q15.63%
3.2 Future
LULU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.84% yearly.
Based on estimates for the next years, LULU will show a quite strong growth in Revenue. The Revenue will grow by 11.33% on average per year.
EPS Next Y12.47%
EPS Next 2Y12.19%
EPS Next 3Y12.89%
EPS Next 5Y15.84%
Revenue Next Year12.12%
Revenue Next 2Y11.29%
Revenue Next 3Y11.31%
Revenue Next 5Y11.33%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 28.58, LULU can be considered very expensive at the moment.
LULU's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.20. LULU is around the same levels.
The Price/Forward Earnings ratio is 25.41, which means the current valuation is very expensive for LULU.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LULU is on the same level as its industry peers.
LULU's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.58 | ||
| Fwd PE | 25.41 |
4.2 Price Multiples
LULU's Enterprise Value to EBITDA ratio is in line with the industry average.
64.00% of the companies in the same industry are cheaper than LULU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.86 | ||
| EV/EBITDA | 15.96 |
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.
A more expensive valuation may be justified as LULU's earnings are expected to grow with 12.89% in the coming years.
PEG (NY)2.29
PEG (5Y)1.06
EPS Next 2Y12.19%
EPS Next 3Y12.89%
5. Dividend
5.1 Amount
LULU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LULULEMON ATHLETICA INC
NASDAQ:LULU (4/26/2024, 12:22:45 PM)
365.31
+5.31 (+1.48%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
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Inst Owners
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Market Cap44.16B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.58 | ||
| Fwd PE | 25.41 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
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OCF(TTM)
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SpS
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TBVpS
PEG (NY)2.29
PEG (5Y)1.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.86% | ||
| ROE | 36.63% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.95% | ||
| PM (TTM) | 16.12% | ||
| GM | 58.31% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.49 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)26.79%
EPS 3Y40.07%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)18.6%
Revenue growth 3Y29.77%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
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EBIT growth 3Y
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