LULULEMON ATHLETICA INC (LULU)
US5500211090 - Common Stock
Overall LULU gets a fundamental rating of 7 out of 10. We evaluated LULU against 51 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the health and profitability get an excellent rating, making LULU a very profitable company, without any liquidiy or solvency issues. LULU is valued quite expensive, but it does show an excellent growth. This makes LULU very considerable 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.
In the past 5 years LULU always reported a positive cash flow from operatings.
1.2 Ratios
LULU's Return On Assets of 21.86% is amongst the best of the industry. LULU outperforms 100.00% of its industry peers.
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.
LULU has a better Return On Invested Capital (27.36%) 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 10.07%.
The 3 year average ROIC (27.36%) for LULU is below the current ROIC(27.36%), indicating increased profibility in the last year.
| 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 better Profit Margin (16.12%) than 94.00% of its industry peers.
LULU's Profit Margin has improved in the last couple of years.
LULU has a better Operating Margin (22.95%) than 98.00% of its industry peers.
LULU's Operating Margin has been stable in the last couple of years.
The Gross Margin of LULU (58.31%) is better than 80.00% 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 | 22.95% | ||
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LULU is creating value.
Compared to 1 year ago, LULU has less shares outstanding
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 12.57 indicates that LULU is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 12.57, 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 | 12.57 |
ROIC/WACC3.39
WACC8.08%
2.3 Liquidity
LULU has a Current Ratio of 2.49. This indicates that LULU is financially healthy and has no problem in meeting its short term obligations.
LULU's Current ratio of 2.49 is in line compared to the rest of the industry. LULU outperforms 60.00% of its industry peers.
A Quick Ratio of 1.68 indicates that LULU should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.68, LULU is doing good in 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.
LULU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.05% yearly.
Looking at the last year, LULU shows a quite strong growth in Revenue. The Revenue has grown by 18.60% in the last year.
Measured over the past years, LULU shows a very strong growth in Revenue. The Revenue has been growing by 23.95% on average per year.
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 14.74% yearly.
The Revenue is expected to grow by 10.63% on average over the next years. This is quite good.
EPS Next Y12.47%
EPS Next 2Y12.19%
EPS Next 3Y12.58%
EPS Next 5Y14.74%
Revenue Next Year12.12%
Revenue Next 2Y11.29%
Revenue Next 3Y10.88%
Revenue Next 5Y10.63%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 27.41 indicates a quite expensive 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 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.02, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 24.37, LULU is valued on the expensive side.
LULU's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of LULU to the average of the S&P500 Index (20.58), we can say LULU is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.41 | ||
| Fwd PE | 24.37 |
4.2 Price Multiples
LULU's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, LULU is valued a bit more expensive than 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.73 | ||
| EV/EBITDA | 15.72 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LULU does not grow enough to justify the current Price/Earnings ratio.
LULU has an outstanding profitability rating, which may justify a higher PE ratio.
LULU's earnings are expected to grow with 12.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.2
PEG (5Y)1.01
EPS Next 2Y12.19%
EPS Next 3Y12.58%
5. Dividend
5.1 Amount
LULU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LULULEMON ATHLETICA INC
NASDAQ:LULU (5/6/2024, 7:00:00 PM)
After market: 351.64 +1.4 (+0.4%)350.24
-4.91 (-1.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
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Inst Owners
Inst Owner Change
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Market Cap42.31B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.41 | ||
| Fwd PE | 24.37 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
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FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.2
PEG (5Y)1.01
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
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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