LULULEMON ATHLETICA INC (LULU) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:LULU • US5500211090

178.32 USD

+3.82 (+2.19%)

Last: Feb 2, 2026, 03:19 PM

Fundamental Rating

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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LULU has a correct valuation and a medium growth rate. With these ratings, LULU could be worth investigating further for quality investing!.

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1. Profitability

1.1 Basic Checks

In the past year LULU was profitable.
In the past year LULU had a positive cash flow from operations.
Each year in the past 5 years LULU has 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 21.88%. This is amongst the best in the industry. LULU outperforms 97.78% of its industry peers.
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.
LULU had an Average Return On Invested Capital over the past 3 years of 29.73%. This is significantly above the industry average of 11.59%.

		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's Profit Margin of 15.72% is amongst the best of the industry. LULU outperforms 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.
With an excellent Operating Margin value of 22.05%, LULU belongs to the best of the industry, outperforming 93.33% 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.
The Gross Margin of LULU (58.41%) is better than 73.33% of its industry peers.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LULU 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.
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

LULU has an Altman-Z score of 7.05. This indicates that LULU is financially healthy and has little risk of bankruptcy at the moment.
LULU has a better Altman-Z score (7.05) than 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	7.05

ROIC/WACC2.69

WACC10.51%

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.
A Quick Ratio of 1.05 indicates that LULU should not have too much problems paying its short term obligations.
LULU has a Quick ratio (1.05) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	2.13
Quick Ratio	1.05

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WACC

Debt/Equity

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Altman-Z score

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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

The Earnings Per Share is expected to grow by 8.56% on average over the next years. This is quite good.
LULU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.73% yearly.

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.

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4. Valuation

4.1 Price/Earnings Ratio

LULU is valuated correctly with a Price/Earnings ratio of 12.36.
Based on the Price/Earnings ratio, LULU is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.32. LULU is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 13.83, the valuation of LULU can be described as correct.
68.89% 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 25.57, LULU is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	12.36
Fwd PE	13.83

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, LULU is valued a bit cheaper than 77.78% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LULU indicates a somewhat cheap valuation: LULU is cheaper than 68.89% of the companies listed in the same industry.