LULULEMON ATHLETICA INC (LULU) Fundamental Analysis & Valuation

NASDAQ:LULU • US5500211090

Current stock price

138.16 USD
-4.23 (-2.97%)
At close:
137.84 USD
-0.32 (-0.23%)
After Hours:

This LULU fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. LULU Profitability Analysis

1.1 Basic Checks

  • In the past year LULU was profitable.
  • LULU had a positive operating cash flow in the past year.
  • In the past 5 years LULU has always been profitable.
  • LULU had a positive operating cash flow in each of the past 5 years.
LULU Yearly Net Income VS EBIT VS OCF VS FCFLULU Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B 2.5B

1.2 Ratios

  • LULU has a better Return On Assets (18.67%) than 97.78% of its industry peers.
  • The Return On Equity of LULU (31.83%) is better than 93.33% of its industry peers.
  • The Return On Invested Capital of LULU (23.72%) is better than 95.56% of its industry peers.
  • LULU had an Average Return On Invested Capital over the past 3 years of 27.63%. This is significantly above the industry average of 9.53%.
Industry RankSector Rank
ROA 18.67%
ROE 31.83%
ROIC 23.72%
ROA(3y)21.47%
ROA(5y)19.88%
ROE(3y)36.81%
ROE(5y)34.63%
ROIC(3y)27.63%
ROIC(5y)27.97%
LULU Yearly ROA, ROE, ROICLULU Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10 20 30 40

1.3 Margins

  • With an excellent Profit Margin value of 14.22%, 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 19.91%. This is amongst the best in the industry. LULU outperforms 88.89% of its industry peers.
  • In the last couple of years the Operating Margin of LULU has remained more or less at the same level.
  • The Gross Margin of LULU (56.60%) is better than 66.67% of its industry peers.
  • In the last couple of years the Gross Margin of LULU has remained more or less at the same level.
Industry RankSector Rank
OM 19.91%
PM (TTM) 14.22%
GM 56.6%
OM growth 3Y-2.2%
OM growth 5Y0.62%
PM growth 3Y10.51%
PM growth 5Y1.23%
GM growth 3Y0.72%
GM growth 5Y0.22%
LULU Yearly Profit, Operating, Gross MarginsLULU Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10 20 30 40 50

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ROAROEROICOperating and Profit MarginShow most profitable peers

9

2. LULU Health Analysis

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
  • Compared to 5 years ago, LULU has less shares outstanding
  • LULU has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
LULU Yearly Shares OutstandingLULU Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20M 40M 60M 80M 100M
LULU Yearly Total Debt VS Total AssetsLULU Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B 8B

2.2 Solvency

  • LULU has an Altman-Z score of 6.09. This indicates that LULU is financially healthy and has little risk of bankruptcy at the moment.
  • LULU's Altman-Z score of 6.09 is amongst the best of 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 6.09
ROIC/WACC2.38
WACC9.98%
LULU Yearly LT Debt VS Equity VS FCFLULU Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B 4B

2.3 Liquidity

  • LULU has a Current Ratio of 2.26. This indicates that LULU is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 2.26, LULU is in the better half of the industry, outperforming 64.44% of the companies in the same industry.
  • LULU has a Quick Ratio of 1.36. This is a normal value and indicates that LULU is financially healthy and should not expect problems in meeting its short term obligations.
  • LULU has a Quick ratio (1.36) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 2.26
Quick Ratio 1.36
LULU Yearly Current Assets VS Current LiabilitesLULU Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B 4B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. LULU Growth Analysis

3.1 Past

  • The earnings per share for LULU have decreased by -9.52% in the last year.
  • The Earnings Per Share has been growing by 23.39% on average over the past years. This is a very strong growth
  • Looking at the last year, LULU shows a small growth in Revenue. The Revenue has grown by 4.86% in the last year.
  • The Revenue has been growing by 20.33% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-9.52%
EPS 3Y9.68%
EPS 5Y23.39%
EPS Q2Q%-18.4%
Revenue 1Y (TTM)4.86%
Revenue growth 3Y11.03%
Revenue growth 5Y20.33%
Sales Q2Q%0.81%

3.2 Future

  • The Earnings Per Share is expected to grow by 13.89% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 6.88% on average over the next years.
EPS Next Y-5.54%
EPS Next 2Y0.87%
EPS Next 3Y3.35%
EPS Next 5Y13.89%
Revenue Next Year4.02%
Revenue Next 2Y4.35%
Revenue Next 3Y4.49%
Revenue Next 5Y6.88%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
LULU Yearly Revenue VS EstimatesLULU Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B
LULU Yearly EPS VS EstimatesLULU Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10 20 30

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Find the best growth stocksShow best growing peers

7

4. LULU Valuation Analysis

4.1 Price/Earnings Ratio

  • LULU is valuated reasonably with a Price/Earnings ratio of 10.39.
  • LULU's Price/Earnings ratio is rather cheap when compared to the industry. LULU is cheaper than 91.11% of the companies in the same industry.
  • LULU is valuated cheaply when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 11.00, the valuation of LULU can be described as very reasonable.
  • 84.44% of the companies in the same industry are more expensive than LULU, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.68, LULU is valued a bit cheaper.
Industry RankSector Rank
PE 10.39
Fwd PE 11
LULU Price Earnings VS Forward Price EarningsLULU Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, LULU is valued cheaply inside the industry as 93.33% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, LULU is valued a bit cheaper than 71.11% of the companies in the same industry.
Industry RankSector Rank
P/FCF 17.33
EV/EBITDA 5.41
LULU Per share dataLULU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

  • The excellent profitability rating of LULU may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.44
EPS Next 2Y0.87%
EPS Next 3Y3.35%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. LULU Dividend Analysis

5.1 Amount

  • No dividends for LULU!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

LULU Fundamentals: All Metrics, Ratios and Statistics

LULULEMON ATHLETICA INC

NASDAQ:LULU (4/29/2026, 6:55:28 PM)

After market: 137.84 -0.32 (-0.23%)

138.16

-4.23 (-2.97%)

Chartmill FA Rating
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Industry Strength88.19
Industry Growth56.72
Earnings (Last)03-17
Earnings (Next)06-03
Inst Owners83.33%
Inst Owner Change-0.15%
Ins Owners0.24%
Ins Owner Change6.19%
Market Cap15.97B
Revenue(TTM)11.10B
Net Income(TTM)1.58B
Analysts65.64
Price Target187.58 (35.77%)
Short Float %4.31%
Short Ratio1.65
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)7.69%
Min EPS beat(2)2.76%
Max EPS beat(2)12.63%
EPS beat(4)3
Avg EPS beat(4)4.91%
Min EPS beat(4)-1.37%
Max EPS beat(4)12.63%
EPS beat(8)7
Avg EPS beat(8)4.65%
EPS beat(12)11
Avg EPS beat(12)5.49%
EPS beat(16)14
Avg EPS beat(16)5.22%
Revenue beat(2)1
Avg Revenue beat(2)0.38%
Min Revenue beat(2)-0.33%
Max Revenue beat(2)1.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.79%
Min Revenue beat(4)-2.5%
Max Revenue beat(4)1.1%
Revenue beat(8)1
Avg Revenue beat(8)-1.14%
Revenue beat(12)2
Avg Revenue beat(12)-0.86%
Revenue beat(16)6
Avg Revenue beat(16)-0.17%
PT rev (1m)-12.31%
PT rev (3m)-16.45%
EPS NQ rev (1m)-0.97%
EPS NQ rev (3m)-19.3%
EPS NY rev (1m)-3.07%
EPS NY rev (3m)-2.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.31%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-0.41%
Valuation
Industry RankSector Rank
PE 10.39
Fwd PE 11
P/S 1.44
P/FCF 17.33
P/OCF 9.97
P/B 3.22
P/tB 3.35
EV/EBITDA 5.41
EPS(TTM)13.3
EY9.63%
EPS(NY)12.56
Fwd EY9.09%
FCF(TTM)7.97
FCFY5.77%
OCF(TTM)13.86
OCFY10.03%
SpS96.04
BVpS42.92
TBVpS41.27
PEG (NY)N/A
PEG (5Y)0.44
Graham Number113.334 (-17.97%)
Profitability
Industry RankSector Rank
ROA 18.67%
ROE 31.83%
ROCE 33.65%
ROIC 23.72%
ROICexc 32.72%
ROICexgc 34.09%
OM 19.91%
PM (TTM) 14.22%
GM 56.6%
FCFM 8.3%
ROA(3y)21.47%
ROA(5y)19.88%
ROE(3y)36.81%
ROE(5y)34.63%
ROIC(3y)27.63%
ROIC(5y)27.97%
ROICexc(3y)42.63%
ROICexc(5y)42.31%
ROICexgc(3y)43.95%
ROICexgc(5y)45.37%
ROCE(3y)39.2%
ROCE(5y)39.68%
ROICexgc growth 3Y-6.54%
ROICexgc growth 5Y-0.84%
ROICexc growth 3Y-7.32%
ROICexc growth 5Y3.28%
OM growth 3Y-2.2%
OM growth 5Y0.62%
PM growth 3Y10.51%
PM growth 5Y1.23%
GM growth 3Y0.72%
GM growth 5Y0.22%
F-Score6
Asset Turnover1.31
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 137.2%
Cap/Sales 6.13%
Interest Coverage 2150.4
Cash Conversion 59.2%
Profit Quality 58.36%
Current Ratio 2.26
Quick Ratio 1.36
Altman-Z 6.09
F-Score6
WACC9.98%
ROIC/WACC2.38
Cap/Depr(3y)154.46%
Cap/Depr(5y)171.64%
Cap/Sales(3y)6.47%
Cap/Sales(5y)6.72%
Profit Quality(3y)83.9%
Profit Quality(5y)78.4%
High Growth Momentum
Growth
EPS 1Y (TTM)-9.52%
EPS 3Y9.68%
EPS 5Y23.39%
EPS Q2Q%-18.4%
EPS Next Y-5.54%
EPS Next 2Y0.87%
EPS Next 3Y3.35%
EPS Next 5Y13.89%
Revenue 1Y (TTM)4.86%
Revenue growth 3Y11.03%
Revenue growth 5Y20.33%
Sales Q2Q%0.81%
Revenue Next Year4.02%
Revenue Next 2Y4.35%
Revenue Next 3Y4.49%
Revenue Next 5Y6.88%
EBIT growth 1Y-11.9%
EBIT growth 3Y8.6%
EBIT growth 5Y21.07%
EBIT Next Year16.41%
EBIT Next 3Y9.08%
EBIT Next 5Y13.51%
FCF growth 1Y-41.79%
FCF growth 3Y41.14%
FCF growth 5Y9.93%
OCF growth 1Y-29.49%
OCF growth 3Y18.36%
OCF growth 5Y14.81%

LULULEMON ATHLETICA INC / LULU Fundamental Analysis FAQ

What is the ChartMill fundamental rating of LULULEMON ATHLETICA INC (LULU) stock?

ChartMill assigns a fundamental rating of 7 / 10 to LULU.


Can you provide the valuation status for LULULEMON ATHLETICA INC?

ChartMill assigns a valuation rating of 7 / 10 to LULULEMON ATHLETICA INC (LULU). This can be considered as Undervalued.


What is the profitability of LULU stock?

LULULEMON ATHLETICA INC (LULU) has a profitability rating of 8 / 10.


What is the financial health of LULULEMON ATHLETICA INC (LULU) stock?

The financial health rating of LULULEMON ATHLETICA INC (LULU) is 9 / 10.


What is the earnings growth outlook for LULULEMON ATHLETICA INC?

The Earnings per Share (EPS) of LULULEMON ATHLETICA INC (LULU) is expected to decline by -5.54% in the next year.