LULULEMON ATHLETICA INC (LULU) Stock Fundamental Analysis
NASDAQ:LULU - Nasdaq - US5500211090 - Common Stock - Currency: USD
Overall LULU gets a fundamental rating of 7 out of 10. We evaluated LULU against 49 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 has a decent growth rate and is not valued too expensively. These ratings would make LULU suitable 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.
Each year in the past 5 years LULU had a positive operating cash flow.
1.2 Ratios
The Return On Assets of LULU (24.33%) is better than 97.96% of its industry peers.
Looking at the Return On Equity, with a value of 42.14%, LULU belongs to the top of the industry, outperforming 93.88% of the companies in the same industry.
The Return On Invested Capital of LULU (30.39%) is better than 97.96% 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 11.45%.
The 3 year average ROIC (29.73%) for LULU is below the current ROIC(30.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.33% | ||
| ROE | 42.14% | ||
| ROIC | 30.39% |
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 16.82% is amongst the best of the industry. LULU outperforms 95.92% of its industry peers.
LULU's Profit Margin has been stable in the last couple of years.
LULU has a Operating Margin of 23.37%. This is amongst the best in the industry. LULU outperforms 93.88% of its industry peers.
LULU's Operating Margin has been stable in the last couple of years.
The Gross Margin of LULU (59.34%) is better than 77.55% of its industry peers.
LULU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.37% | ||
| PM (TTM) | 16.82% | ||
| GM | 59.34% |
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.
Compared to 1 year ago, LULU has about the same amount of shares outstanding.
Compared to 5 years ago, LULU has less shares outstanding
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 9.32 indicates that LULU is not in any danger for bankruptcy at the moment.
LULU has a better Altman-Z score (9.32) than 95.92% 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 | 9.32 |
ROIC/WACC3.87
WACC7.86%
2.3 Liquidity
LULU has a Current Ratio of 2.28. This indicates that LULU is financially healthy and has no problem in meeting its short term obligations.
LULU's Current ratio of 2.28 is fine compared to the rest of the industry. LULU outperforms 63.27% of its industry peers.
LULU has a Quick Ratio of 1.23. This is a normal value and indicates that LULU is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.23, LULU perfoms like the industry average, outperforming 46.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
LULU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.19%, which is quite good.
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 9.39% in the past year. This is quite good.
The Revenue has been growing by 21.62% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)13.19%
EPS 3Y23.52%
EPS 5Y24.37%
EPS Q2Q%2.36%
Revenue 1Y (TTM)9.39%
Revenue growth 3Y19.17%
Revenue growth 5Y21.62%
Sales Q2Q%7.32%
3.2 Future
Based on estimates for the next years, LULU will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.19% on average per year.
The Revenue is expected to grow by 7.99% on average over the next years.
EPS Next Y1.72%
EPS Next 2Y4.82%
EPS Next 3Y6.29%
EPS Next 5Y11.19%
Revenue Next Year6.48%
Revenue Next 2Y6.82%
Revenue Next 3Y7.01%
Revenue Next 5Y7.99%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
LULU is valuated correctly with a Price/Earnings ratio of 16.10.
67.35% of the companies in the same industry are more expensive than LULU, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.29. LULU is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 14.71 indicates a correct valuation of LULU.
LULU's Price/Forward Earnings ratio is in line with the industry average.
LULU's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.1 | ||
| Fwd PE | 14.71 |
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 | 21.7 | ||
| EV/EBITDA | 9.55 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LULU does not grow enough to justify the current Price/Earnings ratio.
LULU has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)9.34
PEG (5Y)0.66
EPS Next 2Y4.82%
EPS Next 3Y6.29%
5. Dividend
5.1 Amount
LULU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
237.57
-10.11 (-4.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners96.5%
Inst Owner Change-0.15%
Ins Owners0.3%
Ins Owner Change6.08%
Market Cap28.54B
Analysts74
Price Target313.74 (32.06%)
Short Float %4.86%
Short Ratio1.87
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)0.77%
Min EPS beat(2)-1.37%
Max EPS beat(2)2.91%
EPS beat(4)3
Avg EPS beat(4)2.92%
Min EPS beat(4)-1.37%
Max EPS beat(4)5.41%
EPS beat(8)7
Avg EPS beat(8)3.97%
EPS beat(12)10
Avg EPS beat(12)5.1%
EPS beat(16)14
Avg EPS beat(16)6.97%
Revenue beat(2)0
Avg Revenue beat(2)-1.17%
Min Revenue beat(2)-1.43%
Max Revenue beat(2)-0.92%
Revenue beat(4)0
Avg Revenue beat(4)-1.52%
Min Revenue beat(4)-3.46%
Max Revenue beat(4)-0.26%
Revenue beat(8)0
Avg Revenue beat(8)-1.32%
Revenue beat(12)4
Avg Revenue beat(12)-0.36%
Revenue beat(16)6
Avg Revenue beat(16)0.12%
PT rev (1m)-7.78%
PT rev (3m)-16.65%
EPS NQ rev (1m)-1.54%
EPS NQ rev (3m)-15.04%
EPS NY rev (1m)-0.86%
EPS NY rev (3m)-4.2%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.1 | ||
| Fwd PE | 14.71 | ||
| P/S | 2.66 | ||
| P/FCF | 21.7 | ||
| P/OCF | 14.09 | ||
| P/B | 6.65 | ||
| P/tB | 6.94 | ||
| EV/EBITDA | 9.55 |
EPS(TTM)14.76
EY6.21%
EPS(NY)16.15
Fwd EY6.8%
FCF(TTM)10.95
FCFY4.61%
OCF(TTM)16.86
OCFY7.1%
SpS89.47
BVpS35.7
TBVpS34.22
PEG (NY)9.34
PEG (5Y)0.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.33% | ||
| ROE | 42.14% | ||
| ROCE | 42.89% | ||
| ROIC | 30.39% | ||
| ROICexc | 39.27% | ||
| ROICexgc | 40.88% | ||
| OM | 23.37% | ||
| PM (TTM) | 16.82% | ||
| GM | 59.34% | ||
| FCFM | 12.24% |
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%
ROICexcg growth 3Y-2.73%
ROICexcg 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-Score8
Asset Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 152.77% | ||
| Cap/Sales | 6.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.04% | ||
| Profit Quality | 72.77% | ||
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 9.32 |
F-Score8
WACC7.86%
ROIC/WACC3.87
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)13.19%
EPS 3Y23.52%
EPS 5Y24.37%
EPS Q2Q%2.36%
EPS Next Y1.72%
EPS Next 2Y4.82%
EPS Next 3Y6.29%
EPS Next 5Y11.19%
Revenue 1Y (TTM)9.39%
Revenue growth 3Y19.17%
Revenue growth 5Y21.62%
Sales Q2Q%7.32%
Revenue Next Year6.48%
Revenue Next 2Y6.82%
Revenue Next 3Y7.01%
Revenue Next 5Y7.99%
EBIT growth 1Y12.25%
EBIT growth 3Y22.21%
EBIT growth 5Y23.02%
EBIT Next Year21.76%
EBIT Next 3Y12.04%
EBIT Next 5Y10.61%
FCF growth 1Y122.59%
FCF growth 3Y16.77%
FCF growth 5Y32.6%
OCF growth 1Y61.42%
OCF growth 3Y17.83%
OCF growth 5Y27.7%