LULULEMON ATHLETICA INC (LULU)
US5500211090 - Common Stock
LULU gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 50 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the health and profitability get an excellent rating, making LULU a very profitable company, without any liquidiy or solvency issues. LULU is valued quite expensively, but it does show have an excellent growth rating. With these ratings, LULU could be worth investigating further 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.
LULU had positive earnings in each of the past 5 years.
Each year in the past 5 years LULU had a positive operating cash flow.
1.2 Ratios
The Return On Assets of LULU (24.21%) is better than 96.00% of its industry peers.
The Return On Equity of LULU (40.49%) is better than 96.00% of its industry peers.
LULU has a better Return On Invested Capital (29.51%) than 96.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LULU is significantly above the industry average of 11.55%.
The 3 year average ROIC (27.36%) for LULU is below the current ROIC(29.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.21% | ||
| ROE | 40.49% | ||
| ROIC | 29.51% |
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 (16.34%) than 96.00% of its industry peers.
In the last couple of years the Profit Margin of LULU has grown nicely.
With an excellent Operating Margin value of 23.02%, LULU belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
In the last couple of years the Operating Margin of LULU has remained more or less at the same level.
LULU has a Gross Margin of 58.54%. This is in the better half of the industry: LULU outperforms 76.00% of its industry peers.
LULU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.02% | ||
| PM (TTM) | 16.34% | ||
| GM | 58.54% |
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.
LULU has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 12.37 indicates that LULU is not in any danger for bankruptcy at the moment.
LULU has a better Altman-Z score (12.37) than 94.00% 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 | 12.37 |
ROIC/WACC3.77
WACC7.83%
2.3 Liquidity
A Current Ratio of 2.43 indicates that LULU has no problem at all paying its short term obligations.
LULU's Current ratio of 2.43 is in line compared to the rest of the industry. LULU outperforms 60.00% of its industry peers.
A Quick Ratio of 1.46 indicates that LULU should not have too much problems paying its short term obligations.
LULU has a better Quick ratio (1.46) than 62.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.43 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.93% over the past year.
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 13.02% in the last year.
The Revenue has been growing by 23.95% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)18.93%
EPS 3Y40.07%
EPS 5Y27.05%
EPS Q2Q%17.54%
Revenue 1Y (TTM)13.02%
Revenue growth 3Y29.77%
Revenue growth 5Y23.95%
Sales Q2Q%7.33%
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 13.50% yearly.
The Revenue is expected to grow by 11.04% on average over the next years. This is quite good.
EPS Next Y11.12%
EPS Next 2Y9.16%
EPS Next 3Y8.94%
EPS Next 5Y13.5%
Revenue Next Year8.33%
Revenue Next 2Y7.9%
Revenue Next 3Y8.19%
Revenue Next 5Y11.04%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
LULU is valuated rather expensively with a Price/Earnings ratio of 23.47.
LULU's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 29.20. LULU is around the same levels.
The Price/Forward Earnings ratio is 20.82, which indicates a rather expensive current valuation of LULU.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LULU is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.00, LULU is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.47 | ||
| Fwd PE | 20.82 |
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.
LULU's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.91 | ||
| EV/EBITDA | 13.82 |
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)2.11
PEG (5Y)0.87
EPS Next 2Y9.16%
EPS Next 3Y8.94%
5. Dividend
5.1 Amount
No dividends for LULU!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LULULEMON ATHLETICA INC
NASDAQ:LULU (11/22/2024, 8:00:00 PM)
After market: 317.25 +0.14 (+0.04%)317.11
+1.97 (+0.63%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap38.93B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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PT rev (1m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.47 | ||
| Fwd PE | 20.82 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.11
PEG (5Y)0.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.21% | ||
| ROE | 40.49% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.02% | ||
| PM (TTM) | 16.34% | ||
| GM | 58.54% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.43 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)18.93%
EPS 3Y40.07%
EPS 5Y
EPS Q2Q%
EPS Next Y11.12%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.02%
Revenue growth 3Y29.77%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y