174.5 USD
+1.96 (+1.14%)
At close: Jan 30, 2026
174.24 USD
-0.26 (-0.15%)
After Hours: 1/30/2026, 8:02:42 PM
We assign a fundamental rating of 7 out of 10 to LULU. LULU was compared to 45 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 not valued too expensively and it also shows a decent growth rate. With these ratings, LULU could be worth investigating further for 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.
- LULU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of LULU (21.88%) is better than 97.78% of its industry peers.
- LULU has a Return On Equity of 38.67%. This is amongst the best in the industry. LULU outperforms 91.11% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 28.30%, LULU belongs to the top of the industry, outperforming 95.56% of the companies in the same industry.
- LULU had an Average Return On Invested Capital over the past 3 years of 29.73%. This is significantly above the industry average of 11.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.88% | ||
| ROE | 38.67% | ||
| ROIC | 28.3% |
ROA(3y)20.32%
ROA(5y)18.95%
ROE(3y)35.25%
ROE(5y)32.87%
ROIC(3y)29.73%
ROIC(5y)26.99%
1.3 Margins
- With an excellent Profit Margin value of 15.72%, LULU belongs to the best of the industry, outperforming 95.56% of the companies in the same industry.
- In the last couple of years the Profit Margin of LULU has remained more or less at the same level.
- LULU has a Operating Margin of 22.05%. This is amongst the best in the industry. LULU outperforms 93.33% 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 58.41%, LULU is in the better half of the industry, outperforming 73.33% 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 | 22.05% | ||
| PM (TTM) | 15.72% | ||
| GM | 58.41% |
OM growth 3Y2.55%
OM growth 5Y1.15%
PM growth 3Y3.21%
PM growth 5Y1.1%
GM growth 3Y0.89%
GM growth 5Y1.17%
2. Health
2.1 Basic Checks
- LULU has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- LULU has less shares outstanding than it did 1 year ago.
- 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
- An Altman-Z score of 7.01 indicates that LULU is not in any danger for bankruptcy at the moment.
- LULU has a Altman-Z score of 7.01. This is amongst the best in the industry. LULU outperforms 93.33% 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 | 7.01 |
ROIC/WACC2.68
WACC10.55%
2.3 Liquidity
- LULU has a Current Ratio of 2.13. This indicates that LULU is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of LULU (2.13) is better than 62.22% of its industry peers.
- LULU has a Quick Ratio of 1.05. This is a normal value and indicates that LULU is financially healthy and should not expect problems in meeting its short term obligations.
- LULU's Quick ratio of 1.05 is in line compared to the rest of the industry. LULU outperforms 53.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
- LULU shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.19%.
- The Earnings Per Share has been growing by 24.37% on average over the past years. This is a very strong growth
- The Revenue has grown by 8.76% in the past year. This is quite good.
- Measured over the past years, LULU shows a very strong growth in Revenue. The Revenue has been growing by 21.62% on average per year.
EPS 1Y (TTM)4.19%
EPS 3Y23.52%
EPS 5Y24.37%
EPS Q2Q%-9.76%
Revenue 1Y (TTM)8.76%
Revenue growth 3Y19.17%
Revenue growth 5Y21.62%
Sales Q2Q%7.06%
3.2 Future
- LULU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.56% yearly.
- The Revenue is expected to grow by 6.73% on average over the next years.
EPS Next Y-9.04%
EPS Next 2Y-6.36%
EPS Next 3Y-1.39%
EPS Next 5Y8.56%
Revenue Next Year4.66%
Revenue Next 2Y4.55%
Revenue Next 3Y4.8%
Revenue Next 5Y6.73%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 12.09, which indicates a correct valuation of LULU.
- Based on the Price/Earnings ratio, LULU is valued a bit cheaper than 77.78% of the companies in the same industry.
- LULU is valuated cheaply when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 13.54, which indicates a correct valuation of LULU.
- LULU's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LULU is cheaper than 71.11% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. LULU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.09 | ||
| Fwd PE | 13.54 |
4.2 Price Multiples
- LULU's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LULU is cheaper than 80.00% of the companies in the same industry.
- 68.89% of the companies in the same industry are more expensive than LULU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.34 | ||
| EV/EBITDA | 6.61 |
4.3 Compensation for Growth
- LULU has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.5
EPS Next 2Y-6.36%
EPS Next 3Y-1.39%
5. Dividend
5.1 Amount
- LULU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
LULULEMON ATHLETICA INC / LULU FAQ
What is the ChartMill fundamental rating of LULULEMON ATHLETICA INC (LULU) stock?
ChartMill assigns a fundamental rating of 7 / 10 to LULU.
What is the valuation status for LULU stock?
ChartMill assigns a valuation rating of 5 / 10 to LULULEMON ATHLETICA INC (LULU). This can be considered as Fairly Valued.
Can you provide the profitability details for LULULEMON ATHLETICA INC?
LULULEMON ATHLETICA INC (LULU) has a profitability rating of 8 / 10.
Can you provide the financial health for LULU stock?
The financial health rating of LULULEMON ATHLETICA INC (LULU) is 9 / 10.