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. LULU has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LULU shows excellent growth, but is valued quite expensive already. This makes LULU very considerable for growth and 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.
In the past 5 years LULU always reported a positive cash flow from operatings.
1.2 Ratios
LULU has a Return On Assets of 21.86%. This is amongst the best in the industry. LULU outperforms 100.00% of its industry peers.
LULU has a Return On Equity of 36.63%. This is amongst the best in the industry. LULU outperforms 92.00% of its industry peers.
LULU has a Return On Invested Capital of 27.36%. This is amongst the best in 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 10.21%.
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
The Profit Margin of LULU (16.12%) is better than 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.
In the last couple of years the Operating Margin of LULU has remained more or less at the same level.
LULU's Gross Margin of 58.31% is fine compared to the rest of the industry. LULU outperforms 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.
The number of shares outstanding for LULU has been reduced compared to 1 year ago.
Compared to 5 years ago, LULU has less shares outstanding
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 12.06. This indicates that LULU is financially healthy and has little risk of bankruptcy at the moment.
LULU's Altman-Z score of 12.06 is amongst the best of the industry. LULU outperforms 96.00% of its industry peers.
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 | 12.06 |
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 comparable to the rest of the 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 has a Quick ratio of 1.68. This is in the better half 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
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.
The Earnings Per Share has been growing by 27.05% on average over the past years. This is a very strong growth
LULU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.60%.
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
The Earnings Per Share is expected to grow by 14.74% on average over the next years. This is quite good.
LULU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.63% yearly.
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
LULU is valuated quite expensively with a Price/Earnings ratio of 26.21.
Compared to the rest of the industry, the Price/Earnings ratio of LULU is on the same level as its industry peers.
When comparing the Price/Earnings ratio of LULU to the average of the S&P500 Index (28.60), we can say LULU is valued inline with the index average.
With a Price/Forward Earnings ratio of 23.30, LULU is valued on the expensive side.
LULU's Price/Forward Earnings ratio is in line with the industry average.
LULU is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.21 | ||
| Fwd PE | 23.3 |
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 68.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.61 | ||
| EV/EBITDA | 14.78 |
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.
A more expensive valuation may be justified as LULU's earnings are expected to grow with 12.58% in the coming years.
PEG (NY)2.1
PEG (5Y)0.97
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 (5/17/2024, 7:11:37 PM)
After market: 334.51 -0.44 (-0.13%)334.95
-3.33 (-0.98%)
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 Cap40.46B
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 | 26.21 | ||
| Fwd PE | 23.3 | ||
| 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)2.1
PEG (5Y)0.97
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
EBIT Next 3Y
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