LULULEMON ATHLETICA INC (LULU) Stock Fundamental Analysis
NASDAQ:LULU - Nasdaq - US5500211090 - Common Stock - Currency: USD
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
LULU had positive earnings in the past year.
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 has a Return On Assets of 24.50%. This is amongst the best in the industry. LULU outperforms 100.00% of its industry peers.
LULU has a better Return On Equity (43.55%) than 93.88% of its industry peers.
Looking at the Return On Invested Capital, with a value of 30.48%, LULU belongs to the top of the industry, outperforming 97.96% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LULU is significantly above the industry average of 11.63%.
The last Return On Invested Capital (30.48%) for LULU is above the 3 year average (27.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.5% | ||
| ROE | 43.55% | ||
| ROIC | 30.48% |
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 has a better Profit Margin (17.05%) than 95.92% of its industry peers.
In the last couple of years the Profit Margin of LULU has grown nicely.
The Operating Margin of LULU (23.35%) is better than 95.92% of its industry peers.
In the last couple of years the Operating Margin of LULU has remained more or less at the same level.
Looking at the Gross Margin, with a value of 58.85%, LULU is in the better half of the industry, outperforming 73.47% of the companies in the same industry.
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 | 23.35% | ||
| PM (TTM) | 17.05% | ||
| GM | 58.85% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LULU 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.
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.
2.2 Solvency
LULU has an Altman-Z score of 12.21. This indicates that LULU is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LULU (12.21) is better than 95.92% 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 | 12.21 |
ROIC/WACC3.4
WACC8.97%
2.3 Liquidity
LULU has a Current Ratio of 2.00. This is a normal value and indicates that LULU is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.00, LULU is in line with its industry, outperforming 48.98% of the companies in the same industry.
A Quick Ratio of 1.00 indicates that LULU should not have too much problems paying its short term obligations.
LULU has a Quick ratio of 1.00. This is comparable to the rest of the industry: LULU outperforms 40.82% of its industry peers.
LULU does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
LULU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.48%, which is quite good.
LULU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.05% yearly.
Looking at the last year, LULU shows a quite strong growth in Revenue. The Revenue has grown by 10.84% 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)16.48%
EPS 3Y40.07%
EPS 5Y27.05%
EPS Q2Q%13.44%
Revenue 1Y (TTM)10.84%
Revenue growth 3Y29.77%
Revenue growth 5Y23.95%
Sales Q2Q%8.73%
3.2 Future
The Earnings Per Share is expected to grow by 12.26% 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 8.58% yearly.
EPS Next Y14.17%
EPS Next 2Y10.52%
EPS Next 3Y10.47%
EPS Next 5Y12.26%
Revenue Next Year9.75%
Revenue Next 2Y8.37%
Revenue Next 3Y8.42%
Revenue Next 5Y8.58%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.43, the valuation of LULU can be described as expensive.
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 (29.36), we can say LULU is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 23.45, the valuation of LULU can be described as rather expensive.
Based on the Price/Forward Earnings ratio, LULU is valued a bit more expensive than the industry average as 63.27% of the companies are valued more cheaply.
LULU is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.65, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.43 | ||
| Fwd PE | 23.45 |
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.
Based on the Price/Free Cash Flow ratio, LULU is valued a bit more expensive than 63.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.95 | ||
| EV/EBITDA | 15.53 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
LULU has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.87
PEG (5Y)0.98
EPS Next 2Y10.52%
EPS Next 3Y10.47%
5. Dividend
5.1 Amount
LULU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
366.03
-0.69 (-0.19%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners92.02%
Inst Owner Change-91.48%
Ins Owners0.27%
Ins Owner Change0.07%
Market Cap44.58B
Analysts76.59
Price Target409.35 (11.84%)
Short Float %4.28%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.06%
Min EPS beat(2)4.71%
Max EPS beat(2)5.41%
EPS beat(4)4
Avg EPS beat(4)4.57%
Min EPS beat(4)3.64%
Max EPS beat(4)5.41%
EPS beat(8)8
Avg EPS beat(8)5.58%
EPS beat(12)11
Avg EPS beat(12)5.14%
EPS beat(16)15
Avg EPS beat(16)8.54%
Revenue beat(2)0
Avg Revenue beat(2)-1.86%
Min Revenue beat(2)-3.46%
Max Revenue beat(2)-0.26%
Revenue beat(4)0
Avg Revenue beat(4)-1.66%
Min Revenue beat(4)-3.46%
Max Revenue beat(4)-0.26%
Revenue beat(8)2
Avg Revenue beat(8)-0.7%
Revenue beat(12)5
Avg Revenue beat(12)-0.07%
Revenue beat(16)8
Avg Revenue beat(16)0.79%
PT rev (1m)6.22%
PT rev (3m)25.49%
EPS NQ rev (1m)4.24%
EPS NQ rev (3m)-3.29%
EPS NY rev (1m)0.87%
EPS NY rev (3m)2.74%
Revenue NQ rev (1m)2.45%
Revenue NQ rev (3m)-2.26%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.43 | ||
| Fwd PE | 23.45 | ||
| P/S | 4.38 | ||
| P/FCF | 27.95 | ||
| P/OCF | 19.76 | ||
| P/B | 11.18 | ||
| P/tB | 11.71 | ||
| EV/EBITDA | 15.53 |
EPS(TTM)13.85
EY3.78%
EPS(NY)15.61
Fwd EY4.26%
FCF(TTM)13.09
FCFY3.58%
OCF(TTM)18.52
OCFY5.06%
SpS83.61
BVpS32.73
TBVpS31.27
PEG (NY)1.87
PEG (5Y)0.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.5% | ||
| ROE | 43.55% | ||
| ROCE | 45.03% | ||
| ROIC | 30.48% | ||
| ROICexc | 39.33% | ||
| ROICexgc | 41.13% | ||
| OM | 23.35% | ||
| PM (TTM) | 17.05% | ||
| GM | 58.85% | ||
| FCFM | 15.66% |
ROA(3y)18.95%
ROA(5y)18.12%
ROE(3y)33.12%
ROE(5y)31.09%
ROIC(3y)27.36%
ROIC(5y)24.43%
ROICexc(3y)42.27%
ROICexc(5y)38.4%
ROICexgc(3y)46.02%
ROICexgc(5y)42.26%
ROCE(3y)40.41%
ROCE(5y)36.09%
ROICexcg growth 3Y11.07%
ROICexcg growth 5Y-7.81%
ROICexc growth 3Y20.21%
ROICexc growth 5Y-7.3%
OM growth 3Y5.93%
OM growth 5Y1.38%
PM growth 3Y6.4%
PM growth 5Y1.84%
GM growth 3Y1.37%
GM growth 5Y1.09%
F-Score7
Asset Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 158.75% | ||
| Cap/Sales | 6.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.73% | ||
| Profit Quality | 91.88% | ||
| Current Ratio | 2 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 12.21 |
F-Score7
WACC8.97%
ROIC/WACC3.4
Cap/Depr(3y)188.88%
Cap/Depr(5y)173.01%
Cap/Sales(3y)6.99%
Cap/Sales(5y)6.66%
Profit Quality(3y)82.13%
Profit Quality(5y)80.74%
High Growth Momentum
Growth
EPS 1Y (TTM)16.48%
EPS 3Y40.07%
EPS 5Y27.05%
EPS Q2Q%13.44%
EPS Next Y14.17%
EPS Next 2Y10.52%
EPS Next 3Y10.47%
EPS Next 5Y12.26%
Revenue 1Y (TTM)10.84%
Revenue growth 3Y29.77%
Revenue growth 5Y23.95%
Sales Q2Q%8.73%
Revenue Next Year9.75%
Revenue Next 2Y8.37%
Revenue Next 3Y8.42%
Revenue Next 5Y8.58%
EBIT growth 1Y17.95%
EBIT growth 3Y37.46%
EBIT growth 5Y25.66%
EBIT Next Year31.06%
EBIT Next 3Y13.94%
EBIT Next 5Y12.01%
FCF growth 1Y1633.42%
FCF growth 3Y42.01%
FCF growth 5Y26.04%
OCF growth 1Y246.36%
OCF growth 3Y41.92%
OCF growth 5Y25.32%