Lululemon Athletica Inc

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LULU : NASDAQ : Consumer Goods
$70.56 up 11.0 | 18.0%
Today's Range: 69.68 - 72.7
Avg. Daily Volume: 2226200.0
12/08/16 - 10:11 AM ET

Financial Analysis


LULULEMON ATHLETICA INC's gross profit margin for the second 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 2.76 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 increased by 5.54% 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 FY16 Q2 FY15
Net Sales ($mil)514.52453.01
EBITDA ($mil)94.4683.27
EBIT ($mil)73.9666.58
Net Income ($mil)53.6347.67


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)535.35541.26
Total Assets ($mil)1415.51294.22
Total Debt ($mil)0.00.0
Equity ($mil)1156.21095.47


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin53.3850.49
EBITDA Margin18.3518.38
Operating Margin14.3714.7
Sales Turnover1.551.47
Return on Assets19.0420.61
Return on Equity23.3124.35
Debt Q2 FY16 Q2 FY15
Current Ratio4.886.2
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)137.04140.94
Div / share0.00.0
EPS0.390.34
Book value / share8.447.77
Institutional Own % n/a n/a
Avg Daily Volume2553788.01788406.0

Valuation


BUY. LULULEMON ATHLETICA INC's P/E ratio indicates a premium compared to an average of 24.75 for the Textiles, Apparel & Luxury Goods industry and a premium compared to the S&P 500 average of 25.16. Conducting a second comparison, its price-to-book ratio of 6.82 indicates a significant premium versus the S&P 500 average of 2.79 and a 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 29.51 Peers 24.75   LULU 21.49 Peers 20.01

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.

 

Average. 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 valuation on par 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 22.74 Peers 20.83   LULU 2.23 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.

 

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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
LULU 6.82 Peers 5.34   LULU 3.72 Peers 5.25

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 3.59 Peers 2.24   LULU 15.56 Peers 6.70

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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