180.33 USD
-6.06 (-3.25%)
Overall LULU gets a fundamental rating of 7 out of 10. We evaluated LULU against 45 industry peers in the Textiles, Apparel & Luxury Goods industry. LULU gets an excellent profitability rating and is at the same time showing great financial health properties. LULU has a decent growth rate and is not valued too expensively. 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.
- LULU had a positive operating cash flow in the past year.
- Each year in the past 5 years LULU has been profitable.
- LULU had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 21.88%, LULU belongs to the top of the industry, outperforming 97.78% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 38.67%, LULU belongs to the top of the industry, outperforming 91.11% of the companies in the same industry.
- LULU has a better Return On Invested Capital (28.30%) than 95.56% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for LULU is significantly above the industry average of 11.59%.
| 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
- LULU has a better Profit Margin (15.72%) than 95.56% of its industry peers.
- 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.
- LULU's Gross Margin has been stable in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LULU is creating value.
- The number of shares outstanding for LULU has been reduced compared to 1 year ago.
- LULU has less shares outstanding than it did 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 7.30 indicates that LULU is not in any danger for bankruptcy at the moment.
- LULU's Altman-Z score of 7.30 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 7.3 |
ROIC/WACC2.67
WACC10.58%
2.3 Liquidity
- A Current Ratio of 2.13 indicates that LULU has no problem at all paying 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 has a Quick ratio of 1.05. This is comparable 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
- The Earnings Per Share has been growing slightly by 4.19% over the past year.
- The Earnings Per Share has been growing by 24.37% on average over the past years. This is a very strong growth
- LULU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.76%.
- The Revenue has been growing by 21.62% on average over the past years. This is a very strong growth!
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
- The Earnings Per Share is expected to grow by 8.56% on average over the next years. This is quite good.
- 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.
- 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
- LULU is valuated correctly with a Price/Earnings ratio of 12.50.
- 77.78% of the companies in the same industry are more expensive than LULU, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of LULU to the average of the S&P500 Index (28.82), we can say LULU is valued rather cheaply.
- The Price/Forward Earnings ratio is 13.99, 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 66.67% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. LULU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.5 | ||
| Fwd PE | 13.99 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LULU indicates a somewhat cheap valuation: LULU is cheaper than 75.56% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, LULU is valued a bit cheaper than 68.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.95 | ||
| EV/EBITDA | 7.17 |
4.3 Compensation for Growth
- LULU has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.51
EPS Next 2Y-6.36%
EPS Next 3Y-1.39%
5. Dividend
5.1 Amount
- No dividends for LULU!.
| 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.