Lululemon Stock Analysis, Valuation (NASDAQ:LULU)

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$102.82 $0.82 (0.8%) LULU stock closing price May 18, 2018 (Closing)
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Lululemon
Updated on : May 18, 2018
previous close
LULU 102.8 (0%)
S&P 500 2713 (0%)
Closing Price On: May 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Textile-Apparel
Sector :
Consumer Discretionary
5 Quarter Revenue
Revenue Growth
2018-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
14.1%
Operating Profit
Operating Margin:
17.2%
Sector Average:
10.4%
5 Quarter Net Profit
Net Margins
2018-Q4
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$358M
Net Income:
$119.8M
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Net Margins
Cash Flow
ROIC
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
LULU PS :
5.3
Industry PS :
1.6
Sector:   Consumer Discretionary.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
35.1%
Return on Equity:
18.2%
Free Cash Flow Margin:
33.1%
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Lululemon Stock Analysis

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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 3.4/5

Amigobulls LULU stock analysis relies on business fundamentals such as Lululemon revenue growth, profits and return on equity measures from the latest quarter 2018 Q4 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?

  • The Year Over Year (YoY) revenue growth for Lululemon was 17.6% in 2018 Q4.
  • The company saw a significant growth in revenue with a 5 year CAGR of 14.1%.
  • Lululemon had a healthy average operating margin of 17.2% over the last 4 quarters.
  • LTM Net margins were good at 9.8% for Lululemon.
  • The company has an operating cash flow which is 3 times the net income. We see this as a positive signal.
  • Lululemon's return on invested capital of 35.1% is good.
  • The LTM ROE of 18.2% for Lululemon is attractive.
  • The company has a healthy free cash flow margin of 33.1%.

Should you sell LULU stock?

  • Trading at a PE ratio of 39.5, LULU stock is overvalued in comparison to industry average multiple of 21.2.
  • LULU stock is trading at a PS multiple of 5.3, which is a negative when compared to the Textile-Apparel industry 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.