Lululemon Athletica Inc

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LULU : NASDAQ : Consumer Goods
$63.69 | %
Today's Range: 62.52 - 63.8563
Avg. Daily Volume: 1461900.0
03/24/17 - 4:00 PM ET

Financial Analysis


LULULEMON ATHLETICA INC's gross profit margin for the third quarter of its fiscal year 2016 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. LULULEMON ATHLETICA INC is extremely liquid. Currently, the Quick Ratio is 2.31 which clearly shows the ability to cover any short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has increased by 13.63% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)544.42479.69
EBITDA ($mil)116.9387.89
EBIT ($mil)92.9868.18
Net Income ($mil)68.2953.15


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)480.39403.45
Total Assets ($mil)1478.941321.56
Total Debt ($mil)0.00.0
Equity ($mil)1204.471059.96


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin55.5450.97
EBITDA Margin21.4718.32
Operating Margin17.0814.21
Sales Turnover1.531.48
Return on Assets19.2419.63
Return on Equity23.6324.48
Debt Q3 FY16 Q3 FY15
Current Ratio4.814.46
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)137.08139.39
Div / share0.00.0
EPS0.50.38
Book value / share8.797.6
Institutional Own % n/a n/a
Avg Daily Volume1414853.02528764.0

Valuation


BUY. LULULEMON ATHLETICA INC's P/E ratio indicates a premium compared to an average of 24.70 for the Textiles, Apparel & Luxury Goods industry and a premium compared to the S&P 500 average of 26.73. For additional comparison, its price-to-book ratio of 7.27 indicates a significant premium versus the S&P 500 average of 2.98 and a significant premium versus the industry average of 5.34. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, LULULEMON ATHLETICA INC proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
LULU 30.84 Peers 24.70   LULU 23.64 Peers 18.77

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

LULU is trading at a premium to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

LULU is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
LULU 24.84 Peers 21.39   LULU 2.24 Peers 2.43

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

LULU is trading at a significant premium to its peers.

 

Average. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

LULU trades at a valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
LULU 7.27 Peers 5.34   LULU 12.50 Peers 9.99

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

LULU is trading at a significant premium to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

LULU is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
LULU 3.87 Peers 2.25   LULU 15.31 Peers 6.29

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

LULU is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

LULU has a sales growth rate that significantly exceeds its peers.

 

 

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