LULULEMON ATHLETICA INC (LULU) Stock Fundamental Analysis
NASDAQ:LULU - Nasdaq - US5500211090 - Common Stock - Currency: USD
Taking everything into account, LULU scores 7 out of 10 in our fundamental rating. LULU was compared to 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. These ratings could make LULU a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year LULU was profitable.
LULU had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 23.87%, LULU belongs to the best of the industry, outperforming 98.00% of the companies in the same industry.
LULU's Return On Equity of 41.97% is amongst the best of the industry. LULU outperforms 92.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 30.81%, LULU belongs to the top of the industry, outperforming 98.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LULU is significantly above the industry average of 13.61%.
The 3 year average ROIC (29.73%) for LULU is below the current ROIC(30.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.87% | ||
| ROE | 41.97% | ||
| ROIC | 30.81% |
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 (17.14%) than 94.00% of its industry peers.
LULU's Profit Margin has been stable in the last couple of years.
The Operating Margin of LULU (23.67%) is better than 94.00% 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 59.22%, LULU is doing good in the industry, outperforming 76.00% 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 | 23.67% | ||
| PM (TTM) | 17.14% | ||
| GM | 59.22% |
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
LULU has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for LULU remains at a similar level compared to 1 year ago.
Compared to 5 years ago, LULU has less shares outstanding
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 9.12 indicates that LULU is not in any danger for bankruptcy at the moment.
LULU has a better Altman-Z score (9.12) than 98.00% 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 | 9.12 |
ROIC/WACC3.56
WACC8.66%
2.3 Liquidity
LULU has a Current Ratio of 2.16. This indicates that LULU is financially healthy and has no problem in meeting its short term obligations.
LULU has a Current ratio (2.16) which is in line with its industry peers.
A Quick Ratio of 1.38 indicates that LULU should not have too much problems paying its short term obligations.
LULU has a better Quick ratio (1.38) than 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.02% 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
Looking at the last year, LULU shows a quite strong growth in Revenue. The Revenue has grown by 10.07% in the last year.
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)15.02%
EPS 3Y23.52%
EPS 5Y24.37%
EPS Q2Q%16.07%
Revenue 1Y (TTM)10.07%
Revenue growth 3Y19.17%
Revenue growth 5Y21.62%
Sales Q2Q%12.68%
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 11.54% on average per year.
The Revenue is expected to grow by 8.14% on average over the next years. This is quite good.
EPS Next Y6.18%
EPS Next 2Y8.34%
EPS Next 3Y6.39%
EPS Next 5Y11.54%
Revenue Next Year6.34%
Revenue Next 2Y6.82%
Revenue Next 3Y6.7%
Revenue Next 5Y8.14%
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 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
The Price/Earnings ratio is 17.08, which indicates a rather expensive current valuation of LULU.
LULU's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.31, LULU is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.09, which indicates a correct valuation of LULU.
Based on the Price/Forward Earnings ratio, LULU is valued a bit more expensive than 60.00% of the companies in the same industry.
LULU is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.14, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.08 | ||
| Fwd PE | 16.09 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LULU.
LULU's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.13 | ||
| EV/EBITDA | 9.58 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of LULU may justify a higher PE ratio.
PEG (NY)2.76
PEG (5Y)0.7
EPS Next 2Y8.34%
EPS Next 3Y6.39%
5. Dividend
5.1 Amount
LULU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
251.08
+1.71 (+0.69%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners92.02%
Inst Owner Change0%
Ins Owners0.27%
Ins Owner Change3.82%
Market Cap30.29B
Analysts76.5
Price Target376.42 (49.92%)
Short Float %6.09%
Short Ratio4.18
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)2
Avg EPS beat(2)3.81%
Min EPS beat(2)2.91%
Max EPS beat(2)4.71%
EPS beat(4)4
Avg EPS beat(4)4.38%
Min EPS beat(4)2.91%
Max EPS beat(4)5.41%
EPS beat(8)8
Avg EPS beat(8)5.78%
EPS beat(12)11
Avg EPS beat(12)5.32%
EPS beat(16)15
Avg EPS beat(16)8.62%
Revenue beat(2)0
Avg Revenue beat(2)-0.59%
Min Revenue beat(2)-0.92%
Max Revenue beat(2)-0.26%
Revenue beat(4)0
Avg Revenue beat(4)-1.49%
Min Revenue beat(4)-3.46%
Max Revenue beat(4)-0.26%
Revenue beat(8)1
Avg Revenue beat(8)-0.9%
Revenue beat(12)5
Avg Revenue beat(12)0.03%
Revenue beat(16)7
Avg Revenue beat(16)0.61%
PT rev (1m)-8.44%
PT rev (3m)-2.32%
EPS NQ rev (1m)-5.51%
EPS NQ rev (3m)-3.46%
EPS NY rev (1m)0%
EPS NY rev (3m)0.98%
Revenue NQ rev (1m)-1.6%
Revenue NQ rev (3m)-0.79%
Revenue NY rev (1m)-0.56%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.08 | ||
| Fwd PE | 16.09 | ||
| P/S | 2.86 | ||
| P/FCF | 19.13 | ||
| P/OCF | 13.33 | ||
| P/B | 7.01 | ||
| P/tB | 7.29 | ||
| EV/EBITDA | 9.58 |
EPS(TTM)14.7
EY5.85%
EPS(NY)15.61
Fwd EY6.22%
FCF(TTM)13.13
FCFY5.23%
OCF(TTM)18.84
OCFY7.5%
SpS87.77
BVpS35.84
TBVpS34.42
PEG (NY)2.76
PEG (5Y)0.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.87% | ||
| ROE | 41.97% | ||
| ROCE | 43.49% | ||
| ROIC | 30.81% | ||
| ROICexc | 46.99% | ||
| ROICexgc | 49.22% | ||
| OM | 23.67% | ||
| PM (TTM) | 17.14% | ||
| GM | 59.22% | ||
| FCFM | 14.96% |
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 Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 154.35% | ||
| Cap/Sales | 6.51% | ||
| Interest Coverage | 5244.14 | ||
| Cash Conversion | 76.96% | ||
| Profit Quality | 87.26% | ||
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 9.12 |
F-Score8
WACC8.66%
ROIC/WACC3.56
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)15.02%
EPS 3Y23.52%
EPS 5Y24.37%
EPS Q2Q%16.07%
EPS Next Y6.18%
EPS Next 2Y8.34%
EPS Next 3Y6.39%
EPS Next 5Y11.54%
Revenue 1Y (TTM)10.07%
Revenue growth 3Y19.17%
Revenue growth 5Y21.62%
Sales Q2Q%12.68%
Revenue Next Year6.34%
Revenue Next 2Y6.82%
Revenue Next 3Y6.7%
Revenue Next 5Y8.14%
EBIT growth 1Y13.57%
EBIT growth 3Y22.21%
EBIT growth 5Y23.02%
EBIT Next Year23.3%
EBIT Next 3Y11.41%
EBIT Next 5Y11.06%
FCF growth 1Y-3.7%
FCF growth 3Y16.77%
FCF growth 5Y32.6%
OCF growth 1Y-1.02%
OCF growth 3Y17.83%
OCF growth 5Y27.7%