LULULEMON ATHLETICA INC (LULU)
US5500211090 - Common Stock
We assign a fundamental rating of 7 out of 10 to LULU. LULU was compared to 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.
LULU had a positive operating cash flow in the past year.
LULU had positive earnings in each of the past 5 years.
Each year in the past 5 years LULU had a positive operating cash flow.
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.
The Return On Equity of LULU (36.63%) is better than 92.00% of its industry peers.
LULU's Return On Invested Capital of 27.36% is amongst the best of the industry. LULU outperforms 98.00% of its industry peers.
LULU had an Average Return On Invested Capital over the past 3 years of 27.36%. This is significantly above the industry average of 10.10%.
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
Looking at the Profit Margin, with a value of 16.12%, LULU belongs to the top of the industry, outperforming 94.00% of the companies in the same industry.
LULU's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 22.95%, LULU belongs to the best of the industry, outperforming 98.00% 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 (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
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
LULU has an Altman-Z score of 12.43. This indicates that LULU is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 12.43, LULU belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
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 | 12.43 |
ROIC/WACC3.39
WACC8.08%
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 in line with its industry peers.
A Quick Ratio of 1.68 indicates that LULU should not have too much problems paying its short term obligations.
LULU's Quick ratio of 1.68 is fine compared to the rest of the industry. LULU outperforms 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.49 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.79% over the past year.
Measured over the past years, LULU shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.05% on average per year.
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
Based on estimates for the next years, LULU will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.74% on average per year.
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.
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
A Price/Earnings ratio of 27.13 indicates a quite expensive valuation of LULU.
LULU's Price/Earnings is on the same level as the industry average.
LULU is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.11, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 24.12 indicates a rather expensive valuation of LULU.
The rest of the industry has a similar Price/Forward Earnings ratio as LULU.
LULU is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.13 | ||
| Fwd PE | 24.12 |
4.2 Price Multiples
LULU's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, LULU is valued a bit more expensive than the industry average as 64.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.48 | ||
| EV/EBITDA | 15.47 |
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)2.18
PEG (5Y)1
EPS Next 2Y12.19%
EPS Next 3Y12.58%
5. Dividend
5.1 Amount
No dividends for LULU!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LULULEMON ATHLETICA INC
NASDAQ:LULU (5/8/2024, 1:11:01 PM)
346.76
-3.09 (-0.88%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap41.89B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.13 | ||
| Fwd PE | 24.12 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.18
PEG (5Y)1
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
EBIT growth 5Y
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