Lululemon Stock Analysis, Valuation (NASDAQ:LULU)

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$129.47 $3.02 (2.39%) LULU stock closing price Aug 16, 2018 (Closing)

View the Lululemon stock analysis video on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for LULU stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Lululemon Athletica inc. Stock Rating 3.2/5

Amigobulls LULU stock analysis relies on business fundamentals such as Lululemon revenue growth, profits and return on equity measures from the latest quarter 2019 Q1 earnings. Lululemon valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Lululemon stock rating is our opinion about the business fundamentals of the company.

Should you buy LULU stock?

  • Lululemon sales grew by 24.9% year on year in 2018-04.
  • Lululemon had a healthy average operating margin of 18.53 over the last 4 quarters.
  • Net margins came in at average 10.9% for Lululemon over the last twelve months.
  • Lululemon has an attractive ROIC (Return on Invested Capital) of 39.9
  • Lululemon has a good Return On Equity (ROE) of 20.4.

Should you sell LULU stock?

  • Cash flow from operations is low at 0.4764 times the net income.
  • LULU stock is trading at a PE ratio of 45.7, which is worse than the sector average multiple of 21.
  • LULU stock is trading at a PS multiple of 6.3, which is a negative when compared to the Consumer Discretionary sector average multiple of 1.6.

Comments on this video and Lululemon stock

Amigobulls Lululemon stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Company's fundamentals remain one of the key driver of LULU stock and helps investors in making good buy and sell decision.

Lululemon revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.