LULULEMON ATHLETICA INC (LULU) Stock Fundamental Analysis
USA - NASDAQ:LULU - US5500211090 - Common Stock
170.68 USD
+1.02 (+0.6%)
171.25 USD
+0.57 (+0.33%)
LULU gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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. With these ratings, LULU could be worth investigating further for 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.
Each year in the past 5 years LULU had a positive operating cash flow.
1.2 Ratios
LULU's Return On Assets of 23.74% is amongst the best of the industry. LULU outperforms 97.92% of its industry peers.
Looking at the Return On Equity, with a value of 40.70%, LULU belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 29.67%, LULU belongs to the top of the industry, outperforming 95.83% of the companies in the same industry.
LULU had an Average Return On Invested Capital over the past 3 years of 29.73%. This 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 has a Profit Margin of 16.38%. This is amongst the best in 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's Operating Margin of 22.92% 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 Gross Margin of 59.10%. This is in the better half of the industry: LULU outperforms 77.08% 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 | 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
An Altman-Z score of 7.49 indicates that LULU is not in any danger for bankruptcy at the moment.
LULU has a better Altman-Z score (7.49) than 91.67% 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 | 7.49 |
ROIC/WACC3.17
WACC9.37%
2.3 Liquidity
A Current Ratio of 2.27 indicates that LULU has no problem at all paying 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 68.75% 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 has a Quick ratio (1.16) which is in line with 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.
Looking at the last year, LULU shows a quite strong growth in Revenue. The Revenue has grown by 9.16% 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)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.
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
With a Price/Earnings ratio of 11.60, the valuation of LULU can be described as very reasonable.
LULU's Price/Earnings ratio is a bit cheaper when compared to the industry. LULU is cheaper than 79.17% of the companies in the same industry.
LULU is valuated cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.13, the valuation of LULU can be described as correct.
Based on the Price/Forward Earnings ratio, LULU is valued a bit cheaper than 66.67% of the companies in the same industry.
LULU is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.6 | ||
| Fwd PE | 13.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LULU is valued a bit cheaper than 79.17% of the companies in the same industry.
75.00% of the companies in the same industry are more expensive than LULU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.33 | ||
| EV/EBITDA | 6.4 |
4.3 Compensation for Growth
LULU has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.48
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 |
170.68
+1.02 (+0.6%)
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 Cap20.24B
Revenue(TTM)10.90B
Net Income(TTM)1.79B
Analysts65.64
Price Target207.02 (21.29%)
Short Float %7.4%
Short Ratio1.44
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 | 11.6 | ||
| Fwd PE | 13.13 | ||
| P/S | 1.86 | ||
| P/FCF | 17.33 | ||
| P/OCF | 10.59 | ||
| P/B | 4.61 | ||
| P/tB | 4.81 | ||
| EV/EBITDA | 6.4 |
EPS(TTM)14.71
EY8.62%
EPS(NY)13
Fwd EY7.62%
FCF(TTM)9.85
FCFY5.77%
OCF(TTM)16.12
OCFY9.45%
SpS91.96
BVpS37
TBVpS35.46
PEG (NY)N/A
PEG (5Y)0.48
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 | 7.49 |
F-Score6
WACC9.37%
ROIC/WACC3.17
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.