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 is valued quite expensive, but it does show an excellent growth. This makes LULU very considerable for growth and 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.
Each year in the past 5 years LULU had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 24.21%, LULU belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
The Return On Equity of LULU (40.49%) is better than 96.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 29.51%, LULU belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
LULU had an Average Return On Invested Capital over the past 3 years of 27.36%. This is significantly above the industry average of 11.90%.
The 3 year average ROIC (27.36%) for LULU is below the current ROIC(29.51%), indicating increased profibility in the last year.
| 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.
In the last couple of years the Profit Margin of LULU has grown nicely.
Looking at the Operating Margin, with a value of 23.02%, LULU belongs to the top of the industry, outperforming 98.00% of the companies in the same industry.
LULU's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 58.54%, 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 | 23.02% | ||
| 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
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.
LULU has less shares outstanding than it did 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 12.04. This indicates that LULU is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 12.04, LULU belongs to the top 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 | 12.04 |
ROIC/WACC3.89
WACC7.58%
2.3 Liquidity
A Current Ratio of 2.43 indicates that LULU has no problem at all paying its short term obligations.
LULU has a Current ratio (2.43) which is in line with its industry peers.
A Quick Ratio of 1.46 indicates that LULU should not have too much problems paying its short term obligations.
LULU has a Quick ratio (1.46) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.43 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.93% over the past year.
The Earnings Per Share has been growing by 27.05% 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 13.02% in the last year.
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
Based on estimates for the next years, LULU will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.50% on average per year.
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 Y11.7%
EPS Next 2Y9.56%
EPS Next 3Y9.48%
EPS Next 5Y13.5%
Revenue Next Year8.6%
Revenue Next 2Y7.88%
Revenue Next 3Y8.3%
Revenue Next 5Y11.04%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
LULU is valuated rather expensively with a Price/Earnings ratio of 22.60.
LULU's Price/Earnings ratio is in line with the industry average.
LULU is valuated rather cheaply when we compare the Price/Earnings ratio to 30.84, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.90, which indicates a rather expensive current valuation of LULU.
LULU's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.57. LULU is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.6 | ||
| Fwd PE | 19.9 |
4.2 Price Multiples
LULU's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, LULU is valued a bit more expensive than the industry average as 62.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.05 | ||
| EV/EBITDA | 13.27 |
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)1.93
PEG (5Y)0.84
EPS Next 2Y9.56%
EPS Next 3Y9.48%
5. Dividend
5.1 Amount
No dividends for LULU!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LULULEMON ATHLETICA INC
NASDAQ:LULU (10/30/2024, 3:41:07 PM)
305.26
+0.44 (+0.14%)
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 Cap37.48B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.6 | ||
| Fwd PE | 19.9 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.93
PEG (5Y)0.84
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 Y11.7%
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
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y