Following Peter Lynch’s approach: Does LULULEMON ATHLETICA INC (NASDAQ:LULU) fit the bill?

Let’s dive into LULULEMON ATHLETICA INC (NASDAQ:LULU) using Peter Lynch’s key investing principles, from earnings growth and debt levels to long-term scalability and valuation.

Does LULULEMON ATHLETICA INC (NASDAQ:LULU) match Peter Lynch’s “Invest in What You Know” philosophy?

• In terms of Return on Equity(ROE), LULU is performing well, achieving a 43.55% ratio. This highlights the company's effective allocation of shareholder investments and signifies its commitment to maximizing returns.
• LULU exhibits a favorable Debt-to-Equity ratio at 0.0. This highlights the company's ability to limit excessive debt levels and maintain a strong equity base, demonstrating its financial stability and risk management practices.
• LULU has achieved 27.05 growth in EPS over the past 5 years, reflecting a sustained improvement in earnings performance.
• With a PEG ratio of 0.86, LULU appears to be fairly valued given its strong growth prospects.
• With a Current Ratio of 2.0, LULU appears well-positioned to meet its near-term financial obligations.

Fundamental analysis of LULU

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

LULU gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 49 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 expensively, but it does show have an excellent growth rating. These ratings would make LULU suitable for growth and quality investing!

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

More Affordable Growth stocks can be found in our Peter Lynch screener.

Keep in mind

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.