Exploring NASDAQ:LULU's quality characteristics.

In this article we will dive into LULULEMON ATHLETICA INC (NASDAQ:LULU) as a possible candidate for quality investing. Investors should always do their own research, but we noticed LULULEMON ATHLETICA INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

What matters for quality investors.

• LULULEMON ATHLETICA INC has achieved substantial revenue growth over the past 5 years, with a 25.08% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• The ROIC excluding cash and goodwill of LULULEMON ATHLETICA INC stands at 38.6%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• LULULEMON ATHLETICA INC maintains a healthy Debt/Free Cash Flow Ratio of 0.0, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• LULULEMON ATHLETICA INC demonstrates consistent Profit Quality over the past 5 years, with a strong 80.9%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• LULULEMON ATHLETICA INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 28.79%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• LULULEMON ATHLETICA INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

What else is there to say on the fundamentals of NASDAQ:LULU?

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

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 valued quite expensive, but it does show an excellent growth. With these ratings, LULU could be worth investigating further for growth and quality investing!.

Our latest full fundamental report of LULU contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.