168.18 USD
+3.49 (+2.12%)
168.79 USD
+0.61 (+0.36%)
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.
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
LULU's Return On Assets of 23.74% is amongst the best of the industry. LULU outperforms 97.92% of its industry peers.
The Return On Equity of LULU (40.70%) is better than 91.67% of its industry peers.
With an excellent Return On Invested Capital value of 29.67%, LULU belongs to the best of the industry, outperforming 95.83% of the companies in the same industry.
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 has a Profit Margin of 16.38%. This is amongst the best in the industry. LULU outperforms 97.92% of its industry peers.
LULU's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 22.92%, LULU belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
LULU's Operating Margin has been stable in the last couple of years.
The Gross Margin of LULU (59.10%) is better than 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LULU is creating value.
The number of shares outstanding for LULU has been reduced compared to 1 year ago.
LULU has less shares outstanding than it did 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 7.36. This indicates that LULU is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.36, LULU belongs to the top of the industry, outperforming 91.67% 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 | 7.36 |
ROIC/WACC3.19
WACC9.3%
2.3 Liquidity
A Current Ratio of 2.27 indicates that LULU has no problem at all paying its short term obligations.
LULU has a Current ratio of 2.27. This is in the better half of the industry: LULU outperforms 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.
With a Quick ratio value of 1.16, LULU perfoms like the industry average, outperforming 58.33% of the companies in the same 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.
LULU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.16%.
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
LULU is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.74% yearly.
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-10.2%
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 11.43, the valuation of LULU can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of LULU indicates a somewhat cheap valuation: LULU is cheaper than 79.17% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.45. LULU is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 12.93, the valuation of LULU can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LULU indicates a somewhat cheap valuation: LULU is cheaper than 64.58% of the companies listed in the same industry.
LULU's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.43 | ||
| Fwd PE | 12.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LULU is valued a bit cheaper than 77.08% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LULU indicates a somewhat cheap valuation: LULU is cheaper than 72.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.07 | ||
| EV/EBITDA | 6.17 |
4.3 Compensation for Growth
The excellent profitability rating of LULU may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.47
EPS Next 2Y-5.95%
EPS Next 3Y-1.3%
5. Dividend
5.1 Amount
No dividends for LULU!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
168.18
+3.49 (+2.12%)
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 Cap19.94B
Revenue(TTM)10.90B
Net Income(TTM)1.79B
Analysts65.64
Price Target207.02 (23.09%)
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 | 11.43 | ||
| Fwd PE | 12.93 | ||
| P/S | 1.83 | ||
| P/FCF | 17.07 | ||
| P/OCF | 10.43 | ||
| P/B | 4.55 | ||
| P/tB | 4.74 | ||
| EV/EBITDA | 6.17 |
EPS(TTM)14.71
EY8.75%
EPS(NY)13
Fwd EY7.73%
FCF(TTM)9.85
FCFY5.86%
OCF(TTM)16.12
OCFY9.59%
SpS91.96
BVpS37
TBVpS35.46
PEG (NY)N/A
PEG (5Y)0.47
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 | 7.36 |
F-Score6
WACC9.3%
ROIC/WACC3.19
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.