lululemon athletica inc.
Find Ratings ReportsLULULEMON ATHLETICA INC's gross profit margin for the third quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. LULULEMON ATHLETICA INC has weak liquidity. Currently, the Quick Ratio is 0.83 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has increased by 16.01% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q3 FY23 | Q3 FY22 |
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Net Sales ($mil) | 2204.22 | 1856.89 |
EBITDA ($mil) | 534.29 | 431.62 |
EBIT ($mil) | 436.33 | 352.43 |
Net Income ($mil) | 248.71 | 255.47 |
Balance Sheet | Q3 FY23 | Q3 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 1091.14 | 352.62 |
Total Assets ($mil) | 6022.26 | 5309.44 |
Total Debt ($mil) | 1168.09 | 1038.48 |
Equity ($mil) | 3525.85 | 3039.2 |
Profitability | Q3 FY23 | Q3 FY22 |
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Gross Profit Margin | 62.48 | 60.09 |
EBITDA Margin | 24.23 | 23.24 |
Operating Margin | 19.8 | 18.98 |
Sales Turnover | 1.53 | 1.41 |
Return on Assets | 16.61 | 22.02 |
Return on Equity | 28.38 | 38.48 |
Debt | Q3 FY23 | Q3 FY22 |
---|---|---|
Current Ratio | 2.32 | 1.99 |
Debt/Capital | 0.25 | 0.25 |
Interest Expense | 0.0 | 0.0 |
Interest Coverage | 0.0 | 0.0 |
Share Data | Q3 FY23 | Q3 FY22 |
---|---|---|
Shares outstanding (mil) | 126.24 | 127.52 |
Div / share | 0.0 | 0.0 |
EPS | 1.96 | 2.0 |
Book value / share | 27.93 | 23.83 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1174427.0 | 2173361.0 |
BUY. LULULEMON ATHLETICA INC's P/E ratio indicates a significant premium compared to an average of 39.40 for the Apparel Manufacturing subsector and a significant premium compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 16.83 indicates a significant premium versus the S&P 500 average of 4.68 and a significant premium versus the subsector average of 9.67. The price-to-sales ratio is well above both the S&P 500 average and the subsector 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.
Price/Earnings |
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Price/Cash Flow |
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LULU 59.80 | Peers 39.40 | LULU 30.44 | Peers 19.79 | |||||||||||||||||||||
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. |
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. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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LULU 32.87 | Peers 22.28 | LULU 0.69 | Peers 1.64 | |||||||||||||||||||||
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. |
Discount. 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 significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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LULU 16.83 | Peers 9.67 | LULU -13.63 | Peers -13.15 | |||||||||||||||||||||
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. |
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Price/Sales |
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Sales Growth |
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LULU 6.46 | Peers 3.67 | LULU 23.00 | Peers 12.06 | |||||||||||||||||||||
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 subsector. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. LULU has a sales growth rate that significantly exceeds its peers. |
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