Lululemon Athletica Inc

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LULU : NASDAQ : Consumer Goods
$78.19 | %
Today's Range: 78.17 - 81.24
Avg. Daily Volume: 1,795,000
08/26/16 - 4:00 PM ET

Financial Analysis


LULULEMON ATHLETICA INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. LULULEMON ATHLETICA INC is extremely liquid. Currently, the Quick Ratio is 2.76 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained unchanged 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 Q1 FY16 Q1 FY15
Net Sales ($mil)495.52423.54
EBITDA ($mil)76.7784.13
EBIT ($mil)57.5968.04
Net Income ($mil)45.3447.81


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)550.05655.88
Total Assets ($mil)1401.661337.72
Total Debt ($mil)0.00.0
Equity ($mil)1136.231145.01


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin52.1352.41
EBITDA Margin15.4919.86
Operating Margin11.6216.06
Sales Turnover1.521.37
Return on Assets18.820.02
Return on Equity23.1923.39
Debt Q1 FY16 Q1 FY15
Current Ratio4.86.78
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)137.16141.81
Div / share0.00.0
EPS0.330.34
Book value / share8.288.07
Institutional Own % n/a n/a
Avg Daily Volume1785653.02026299.0

Valuation


BUY. LULULEMON ATHLETICA INC's P/E ratio indicates a significant premium compared to an average of 28.56 for the Textiles, Apparel & Luxury Goods industry and a significant premium compared to the S&P 500 average of 25.13. For additional comparison, its price-to-book ratio of 9.73 indicates a significant premium versus the S&P 500 average of 2.82 and a significant premium versus the industry average of 6.53. 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 42.42 Peers 28.56   LULU 34.77 Peers 39.49

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

LULU is trading at a significant premium to its peers.

 

Discount. 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 discount 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 31.73 Peers 23.81   LULU 3.10 Peers 2.75

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.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
LULU 9.73 Peers 6.53   LULU 1.60 Peers 8.11

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.

 

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

However, LULU is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
LULU 5.18 Peers 2.74   LULU 16.14 Peers 8.07

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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