LULULEMON ATHLETICA INC (LULU)
US5500211090 - Common Stock
Overall LULU gets a fundamental rating of 7 out of 10. We evaluated LULU against 50 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 is valued quite expensively, but it does show have an excellent growth rating. These ratings would make LULU suitable 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.
With an excellent Return On Equity value of 36.63%, LULU belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
LULU's Return On Invested Capital of 27.36% is amongst the best of the industry. LULU outperforms 98.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LULU is significantly above the industry average of 10.04%.
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
LULU's Profit Margin of 16.12% is amongst the best of the industry. LULU outperforms 94.00% of its industry peers.
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.
LULU's Gross Margin of 58.31% is amongst the best of the industry. LULU outperforms 82.00% 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
LULU has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, LULU has less shares outstanding
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 12.74 indicates that LULU is not in any danger for bankruptcy at the moment.
The Altman-Z score of LULU (12.74) is better than 96.00% 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 | 12.74 |
ROIC/WACC3.27
WACC8.36%
2.3 Liquidity
A Current Ratio of 2.49 indicates that LULU has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.49, LULU is in line with its industry, outperforming 60.00% of the companies in the same industry.
LULU has a Quick Ratio of 1.68. This is a normal value and indicates that LULU is financially healthy and should not expect problems in meeting its short term obligations.
LULU's Quick ratio of 1.68 is fine compared to the rest of the industry. LULU outperforms 70.00% 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.
The Earnings Per Share has been growing by 27.05% on average over the past years. This is a very strong growth
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
Based on estimates for the next years, LULU will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.84% on average per year.
LULU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.33% yearly.
EPS Next Y12.47%
EPS Next 2Y12.19%
EPS Next 3Y12.89%
EPS Next 5Y15.84%
Revenue Next Year12.12%
Revenue Next 2Y11.29%
Revenue Next 3Y11.31%
Revenue Next 5Y11.33%
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.
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 28.59 indicates a quite expensive valuation of LULU.
LULU's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of LULU to the average of the S&P500 Index (24.95), we can say LULU is valued inline with the index average.
The Price/Forward Earnings ratio is 25.42, which means the current valuation is very expensive for 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 21.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.59 | ||
| Fwd PE | 25.42 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LULU is on the same level as its industry peers.
64.00% of the companies in the same industry are cheaper than LULU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.87 | ||
| EV/EBITDA | 16.04 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of LULU may justify a higher PE ratio.
LULU's earnings are expected to grow with 12.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.29
PEG (5Y)1.06
EPS Next 2Y12.19%
EPS Next 3Y12.89%
5. Dividend
5.1 Amount
LULU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LULULEMON ATHLETICA INC
NASDAQ:LULU (4/23/2024, 2:16:42 PM)
365.43
+3.64 (+1.01%)
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 Cap44.18B
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 | 28.59 | ||
| Fwd PE | 25.42 | ||
| 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)2.29
PEG (5Y)1.06
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
EBIT Next Year
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EBIT Next 5Y
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