NasdaqGS:LULU

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$52.1b

Last Updated

2021/07/31 22:24 UTC

Data Sources

Company Financials +

Executive Summary

lululemon athletica inc., together with its subsidiaries, designs, distributes, and retails athletic apparel and accessories for women and men. More Details


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Lululemon Athletica's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LULU is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: LULU's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-0.6%

LULU

0.7%

US Luxury

-0.5%

US Market


1 Year Return

22.9%

LULU

67.3%

US Luxury

35.9%

US Market

Return vs Industry: LULU underperformed the US Luxury industry which returned 67.3% over the past year.

Return vs Market: LULU underperformed the US Market which returned 35.9% over the past year.


Shareholder returns

LULUIndustryMarket
7 Day-0.6%0.7%-0.5%
30 Day9.9%4.0%0.09%
90 Day19.4%13.6%3.2%
1 Year22.9%22.9%68.7%67.3%38.0%35.9%
3 Year217.4%217.4%75.7%68.4%62.8%52.6%
5 Year414.4%414.4%131.7%116.8%121.2%96.9%

Long-Term Price Volatility Vs. Market

How volatile is Lululemon Athletica's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lululemon Athletica undervalued compared to its fair value and its price relative to the market?

73.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LULU ($400.17) is trading above our estimate of fair value ($253.75)

Significantly Below Fair Value: LULU is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LULU is poor value based on its PE Ratio (73.9x) compared to the US Luxury industry average (23.4x).

PE vs Market: LULU is poor value based on its PE Ratio (73.9x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: LULU is poor value based on its PEG Ratio (4.4x)


Price to Book Ratio

PB vs Industry: LULU is overvalued based on its PB Ratio (19.7x) compared to the US Luxury industry average (1.7x).


Future Growth

How is Lululemon Athletica forecast to perform in the next 1 to 3 years based on estimates from 29 analysts?

16.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LULU's forecast earnings growth (16.8% per year) is above the savings rate (2%).

Earnings vs Market: LULU's earnings (16.8% per year) are forecast to grow faster than the US market (14.9% per year).

High Growth Earnings: LULU's earnings are forecast to grow, but not significantly.

Revenue vs Market: LULU's revenue (13.1% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: LULU's revenue (13.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LULU's Return on Equity is forecast to be high in 3 years time (32.4%)


Past Performance

How has Lululemon Athletica performed over the past 5 years?

20.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LULU has high quality earnings.

Growing Profit Margin: LULU's current net profit margins (14.2%) are lower than last year (15%).


Past Earnings Growth Analysis

Earnings Trend: LULU's earnings have grown significantly by 20.9% per year over the past 5 years.

Accelerating Growth: LULU's earnings growth over the past year (21.9%) exceeds its 5-year average (20.9% per year).

Earnings vs Industry: LULU earnings growth over the past year (21.9%) underperformed the Luxury industry 50%.


Return on Equity

High ROE: LULU's Return on Equity (26.7%) is considered high.


Financial Health

How is Lululemon Athletica's financial position?


Financial Position Analysis

Short Term Liabilities: LULU's short term assets ($2.3B) exceed its short term liabilities ($964.8M).

Long Term Liabilities: LULU's short term assets ($2.3B) exceed its long term liabilities ($725.2M).


Debt to Equity History and Analysis

Debt Level: LULU is debt free.

Reducing Debt: LULU had no debt 5 years ago.

Debt Coverage: LULU has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: LULU has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Lululemon Athletica current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LULU's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate LULU's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LULU's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LULU's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LULU's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Calvin McDonald (49 yo)

2.92yrs

Tenure

US$10,590,106

Compensation

Mr. Calvin R. McDonald serves as Director at The Walt Disney Company since May 27, 2021. He serves as the Chief Executive Officer and Director of Lululemon Athletica Inc. since August 20, 2018. He joined l...


CEO Compensation Analysis

Compensation vs Market: Calvin's total compensation ($USD10.59M) is about average for companies of similar size in the US market ($USD11.17M).

Compensation vs Earnings: Calvin's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: LULU's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: LULU's board of directors are considered experienced (4.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LULU insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lululemon Athletica Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lululemon Athletica Inc.
  • Ticker: LULU
  • Exchange: NasdaqGS
  • Founded: 1998
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: US$52.084b
  • Shares outstanding: 130.16m
  • Website: https://www.lululemon.com

Number of Employees


Location

  • Lululemon Athletica Inc.
  • 1818 Cornwall Avenue
  • Vancouver
  • British Columbia
  • V6J 1C7
  • Canada

Listings


Biography

lululemon athletica inc., together with its subsidiaries, designs, distributes, and retails athletic apparel and accessories for women and men. It operates through two segments, Company-Operated Stores and...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 22:24
End of Day Share Price2021/07/30 00:00
Earnings2021/05/02
Annual Earnings2021/01/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.