Lululemon Stock Analysis, Valuation (NASDAQ:LULU)

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$80.28 $0.48 (0.59%) LULU stock closing price Mar 19, 2018 (Closing)
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Updated on : Mar 19, 2018
previous close
LULU 80.8 (0%)
S&P 500 2752 (0%)
Closing Price On: Mar 16, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Sector :
Consumer Discretionary
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5 Quarter Net Profit
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LTM Margin
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Net Income:
Recent Growth
Long Term Growth
Operating Margins
Net Margins
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PE Valuation
PS Valuation
FCF Margin
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
Industry PS :
Sector:   Consumer Discretionary.   *PE adjusted for one time items.
Other Metrics
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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 Q3 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 13.7% in 2018 Q3.
  • The company saw a significant growth in revenue with a 5 year CAGR of 14.8%.
  • Lululemon's average operating margin of 15.8% was exceptional.
  • Net margins came in at average 11% for Lululemon over the last twelve months.
  • Lululemon's return on invested capital of 36.8% is good.
  • Lululemon has a good Return On Equity (ROE) of 20.4%.

Should you sell LULU stock?

  • The company has an operating cash flow which is 0.5 times the net income. This is not a healthy sign.
  • LULU stock is trading at a PE ratio of 35.4, which is worse than the industry average multiple of 22.1.
  • LULU stock is trading at a PS multiple of 4.3, which is a negative when compared to the Textile-Apparel industry average multiple of 1.7.
  • The company has a negative free cash flow margin of -4.5%.

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.