LULULEMON ATHLETICA INC (LULU)
US5500211090 - Common Stock
We assign a fundamental rating of 7 out of 10 to LULU. LULU was compared to 50 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 shows excellent growth, but is valued quite expensive already. These ratings would make LULU suitable 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.
In the past 5 years LULU has always been profitable.
In the past 5 years LULU always reported a positive cash flow from operatings.
1.2 Ratios
LULU's Return On Assets of 24.21% is amongst the best of the industry. LULU outperforms 96.00% of its industry peers.
LULU has a Return On Equity of 40.49%. This is amongst the best in the industry. LULU outperforms 96.00% of its industry peers.
LULU has a better Return On Invested Capital (29.51%) than 96.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LULU is significantly above the industry average of 11.54%.
The last Return On Invested Capital (29.51%) for LULU is above the 3 year average (27.36%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 16.34%, LULU belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
LULU's Profit Margin has improved in the last couple of years.
LULU has a better Operating Margin (23.02%) than 96.00% of its industry peers.
In the last couple of years the Operating Margin of LULU has remained more or less at the same level.
LULU's Gross Margin of 58.54% is fine compared to the rest of the industry. LULU outperforms 76.00% of its industry peers.
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 | 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
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
LULU has an Altman-Z score of 12.13. This indicates that LULU is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 12.13, LULU belongs to the best of the industry, outperforming 94.00% of the companies in the same industry.
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 | 12.13 |
ROIC/WACC3.77
WACC7.83%
2.3 Liquidity
LULU has a Current Ratio of 2.43. This indicates that LULU is financially healthy and has no problem in meeting its short term obligations.
LULU has a Current ratio (2.43) which is comparable to the rest of the industry.
LULU has a Quick Ratio of 1.46. This is a normal value and indicates that LULU is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.46, LULU is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.43 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
LULU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.93%, which is quite good.
Measured over the past years, LULU shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.05% on average per year.
The Revenue has grown by 13.02% 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 23.95% on average per year.
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
The Earnings Per Share is expected to grow by 13.50% on average over the next years. This is quite good.
LULU is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.04% yearly.
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
LULU is valuated rather expensively with a Price/Earnings ratio of 23.33.
Compared to the rest of the industry, the Price/Earnings ratio of LULU is on the same level as its industry peers.
LULU is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 20.69, the valuation of LULU can be described as rather expensive.
LULU's Price/Forward Earnings is on the same level as the industry average.
LULU's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.33 | ||
| Fwd PE | 20.69 |
4.2 Price Multiples
LULU's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, LULU is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.77 | ||
| EV/EBITDA | 13.42 |
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)2.1
PEG (5Y)0.86
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 (11/21/2024, 5:28:53 PM)
After market: 316.5 +1.36 (+0.43%)315.14
+6.83 (+2.22%)
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 Cap38.69B
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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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.33 | ||
| Fwd PE | 20.69 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
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FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.1
PEG (5Y)0.86
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
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