Lululemon Athletica Inc

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LULU : NASDAQ : Consumer Goods
$58.95 -0.81 | -1.4%
Today's Range: 58.01 - 59.79
Avg. Daily Volume: 2009500.0
09/19/17 - 3:59 PM ET

Financial Analysis


LULULEMON ATHLETICA INC's gross profit margin for the second quarter of its fiscal year 2017 has increased 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 3.29 which clearly shows the ability to cover any short-term cash needs. LULU managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has increased by 20.89% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)581.05514.52
EBITDA ($mil)100.3394.46
EBIT ($mil)74.1473.96
Net Income ($mil)48.7153.63


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)721.21535.35
Total Assets ($mil)1686.921415.5
Total Debt ($mil)0.00.0
Equity ($mil)1397.811156.2


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin56.0853.38
EBITDA Margin17.2618.35
Operating Margin12.7614.37
Sales Turnover1.441.55
Return on Assets16.8519.04
Return on Equity20.3423.31
Debt Q2 FY17 Q2 FY16
Current Ratio5.224.88
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)135.48137.04
Div / share0.00.0
EPS0.360.39
Book value / share10.328.44
Institutional Own % n/a n/a
Avg Daily Volume2213880.04652784.0

Valuation


BUY. LULULEMON ATHLETICA INC's P/E ratio indicates a premium compared to an average of 23.54 for the Textiles, Apparel & Luxury Goods industry and a premium compared to the S&P 500 average of 24.88. Conducting a second comparison, its price-to-book ratio of 5.92 indicates a significant premium versus the S&P 500 average of 3.10 and a premium versus the industry average of 5.47. 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 29.38 Peers 23.54   LULU 21.58 Peers 18.16

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 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 22.39 Peers 19.98   LULU 3.25 Peers 2.03

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 significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
LULU 5.92 Peers 5.47   LULU 6.66 Peers 2.69

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

LULU is trading at a valuation on par with 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 3.40 Peers 2.17   LULU 11.01 Peers 8.08

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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