LULULEMON ATHLETICA INC (LULU) Stock Fundamental Analysis
NASDAQ:LULU - Nasdaq - US5500211090 - Common Stock - Currency: USD
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!.
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.
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 Rank | Sector 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%
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 Rank | Sector 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%
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 10.62 |
ROIC/WACC3.46
WACC8.9%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.38 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.14 | ||
| Fwd PE | 20.6 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.58 | ||
| EV/EBITDA | 12.37 |
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%
5. Dividend
5.1 Amount
No dividends for LULU!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
310.76
-9.7 (-3.03%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
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 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)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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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%