Examining the Quality Attributes of NASDAQ:LULU.

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.

Why NASDAQ:LULU may be interesting for quality investors.

• LULULEMON ATHLETICA INC has achieved substantial revenue growth over the past 5 years, with a 23.95% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• LULULEMON ATHLETICA INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 42.75% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• LULULEMON ATHLETICA INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.0, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• LULULEMON ATHLETICA INC exhibits impressive Profit Quality (5-year) with a 80.74% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• LULULEMON ATHLETICA INC has experienced impressive EBIT growth over the past 5 years, with 25.66% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• 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?

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Taking everything into account, LULU scores 7 out of 10 in our fundamental rating. LULU was compared to 50 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 shows excellent growth, but is valued quite expensive already. With these ratings, LULU could be worth investigating further for growth and quality investing!.

Check the latest full fundamental report of LULU for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.