LULULEMON ATHLETICA INC (LULU) Stock Fundamental Analysis
USA - NASDAQ:LULU - US5500211090 - Common Stock
160.66 USD
-4.81 (-2.91%)
160.74 USD
+0.08 (+0.05%)
We assign a fundamental rating of 7 out of 10 to LULU. LULU was compared to 48 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 is not valued too expensively and it also shows a decent growth rate. These ratings would make LULU suitable for quality investing!
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.
LULU had positive earnings in each of the past 5 years.
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 23.74%, LULU belongs to the top of the industry, outperforming 97.92% of the companies in the same industry.
LULU has a Return On Equity of 40.70%. This is amongst the best in the industry. LULU outperforms 93.75% of its industry peers.
LULU has a Return On Invested Capital of 29.67%. This is amongst the best in the industry. LULU outperforms 95.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LULU is significantly above the industry average of 12.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.74% | ||
| ROE | 40.7% | ||
| ROIC | 29.67% |
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 (16.38%) than 97.92% of its industry peers.
LULU's Profit Margin has been stable in the last couple of years.
The Operating Margin of LULU (22.92%) is better than 93.75% of its industry peers.
In the last couple of years the Operating Margin of LULU has remained more or less at the same level.
With a decent Gross Margin value of 59.10%, LULU is doing good in the industry, outperforming 77.08% 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 | 22.92% | ||
| PM (TTM) | 16.38% | ||
| GM | 59.1% |
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.
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
LULU has an Altman-Z score of 7.37. This indicates that LULU is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 7.37, LULU belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
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 | 7.37 |
ROIC/WACC2.97
WACC9.98%
2.3 Liquidity
A Current Ratio of 2.27 indicates that LULU has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.27, LULU is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
LULU has a Quick Ratio of 1.16. 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 (1.16) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.88% 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 9.16%.
LULU shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.62% yearly.
EPS 1Y (TTM)8.88%
EPS 3Y23.52%
EPS 5Y24.37%
EPS Q2Q%-1.59%
Revenue 1Y (TTM)9.16%
Revenue growth 3Y19.17%
Revenue growth 5Y21.62%
Sales Q2Q%6.5%
3.2 Future
LULU is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.74% yearly.
Based on estimates for the next years, LULU will show a small growth in Revenue. The Revenue will grow by 5.77% on average per year.
EPS Next Y-10.24%
EPS Next 2Y-6%
EPS Next 3Y-1.65%
EPS Next 5Y6.74%
Revenue Next Year3.87%
Revenue Next 2Y4.16%
Revenue Next 3Y4.67%
Revenue Next 5Y5.77%
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
With a Price/Earnings ratio of 10.92, the valuation of LULU can be described as very reasonable.
LULU's Price/Earnings ratio is a bit cheaper when compared to the industry. LULU is cheaper than 79.17% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.03, LULU is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.37, LULU is valued correctly.
Based on the Price/Forward Earnings ratio, LULU is valued a bit cheaper than 68.75% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.27, LULU is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.92 | ||
| Fwd PE | 12.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LULU is valued a bit cheaper than 79.17% of the companies in the same industry.
LULU's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LULU is cheaper than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.31 | ||
| EV/EBITDA | 6.2 |
4.3 Compensation for Growth
LULU has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.45
EPS Next 2Y-6%
EPS Next 3Y-1.65%
5. Dividend
5.1 Amount
No dividends for LULU!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
160.66
-4.81 (-2.91%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners88.49%
Inst Owner Change-0.45%
Ins Owners0.32%
Ins Owner Change2.66%
Market Cap19.05B
Revenue(TTM)10.90B
Net Income(TTM)1.79B
Analysts65.64
Price Target207.02 (28.86%)
Short Float %7.4%
Short Ratio1.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)1
Avg EPS beat(2)2.13%
Min EPS beat(2)-1.37%
Max EPS beat(2)5.62%
EPS beat(4)3
Avg EPS beat(4)2.97%
Min EPS beat(4)-1.37%
Max EPS beat(4)5.62%
EPS beat(8)7
Avg EPS beat(8)4.26%
EPS beat(12)10
Avg EPS beat(12)4.28%
EPS beat(16)14
Avg EPS beat(16)5.09%
Revenue beat(2)0
Avg Revenue beat(2)-1.96%
Min Revenue beat(2)-2.5%
Max Revenue beat(2)-1.43%
Revenue beat(4)0
Avg Revenue beat(4)-1.28%
Min Revenue beat(4)-2.5%
Max Revenue beat(4)-0.26%
Revenue beat(8)0
Avg Revenue beat(8)-1.59%
Revenue beat(12)3
Avg Revenue beat(12)-0.84%
Revenue beat(16)5
Avg Revenue beat(16)-0.43%
PT rev (1m)-4%
PT rev (3m)-33.19%
EPS NQ rev (1m)-2.44%
EPS NQ rev (3m)-25.63%
EPS NY rev (1m)-1%
EPS NY rev (3m)-11.34%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-3.25%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.92 | ||
| Fwd PE | 12.37 | ||
| P/S | 1.75 | ||
| P/FCF | 16.31 | ||
| P/OCF | 9.97 | ||
| P/B | 4.34 | ||
| P/tB | 4.53 | ||
| EV/EBITDA | 6.2 |
EPS(TTM)14.71
EY9.16%
EPS(NY)12.99
Fwd EY8.08%
FCF(TTM)9.85
FCFY6.13%
OCF(TTM)16.12
OCFY10.03%
SpS91.96
BVpS37
TBVpS35.46
PEG (NY)N/A
PEG (5Y)0.45
Graham Number110.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.74% | ||
| ROE | 40.7% | ||
| ROCE | 41.88% | ||
| ROIC | 29.67% | ||
| ROICexc | 36.8% | ||
| ROICexgc | 38.25% | ||
| OM | 22.92% | ||
| PM (TTM) | 16.38% | ||
| GM | 59.1% | ||
| FCFM | 10.71% |
ROA(3y)20.32%
ROA(5y)18.95%
ROE(3y)35.25%
ROE(5y)32.87%
ROIC(3y)29.73%
ROIC(5y)26.99%
ROICexc(3y)45.65%
ROICexc(5y)41.54%
ROICexgc(3y)46.74%
ROICexgc(5y)45.9%
ROCE(3y)41.97%
ROCE(5y)38.1%
ROICexgc growth 3Y-2.73%
ROICexgc growth 5Y3.8%
ROICexc growth 3Y3.22%
ROICexc growth 5Y3.16%
OM growth 3Y2.55%
OM growth 5Y1.15%
PM growth 3Y3.21%
PM growth 5Y1.1%
GM growth 3Y0.89%
GM growth 5Y1.17%
F-Score6
Asset Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 154.46% | ||
| Cap/Sales | 6.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.15% | ||
| Profit Quality | 65.41% | ||
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 7.37 |
F-Score6
WACC9.98%
ROIC/WACC2.97
Cap/Depr(3y)181.68%
Cap/Depr(5y)168.92%
Cap/Sales(3y)7.05%
Cap/Sales(5y)6.53%
Profit Quality(3y)77.23%
Profit Quality(5y)86.23%
High Growth Momentum
Growth
EPS 1Y (TTM)8.88%
EPS 3Y23.52%
EPS 5Y24.37%
EPS Q2Q%-1.59%
EPS Next Y-10.24%
EPS Next 2Y-6%
EPS Next 3Y-1.65%
EPS Next 5Y6.74%
Revenue 1Y (TTM)9.16%
Revenue growth 3Y19.17%
Revenue growth 5Y21.62%
Sales Q2Q%6.5%
Revenue Next Year3.87%
Revenue Next 2Y4.16%
Revenue Next 3Y4.67%
Revenue Next 5Y5.77%
EBIT growth 1Y8.67%
EBIT growth 3Y22.21%
EBIT growth 5Y23.02%
EBIT Next Year9.59%
EBIT Next 3Y5.94%
EBIT Next 5Y6.88%
FCF growth 1Y20.52%
FCF growth 3Y16.77%
FCF growth 5Y32.6%
OCF growth 1Y16.98%
OCF growth 3Y17.83%
OCF growth 5Y27.7%
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 of LULULEMON ATHLETICA INC (LULU) stock?
ChartMill assigns a valuation rating of 6 / 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.
What is the expected EPS growth for LULULEMON ATHLETICA INC (LULU) stock?
The Earnings per Share (EPS) of LULULEMON ATHLETICA INC (LULU) is expected to decline by -10.24% in the next year.