Market Inference Overview -- LULU Stock

Now trading at a price of $297.28, lululemon athletica inc. has moved -9.7% so far today on a volume of 2,626,078, compared to its average of 1,678,888. In contrast, the S&P 500 index moved 1.0%.

lululemon athletica inc. shares moved -5.5% over the last 52 weeks, with a high of $410.7 and a low of $251.51. During this time, the stock outperformed the S&P 500 index by 11.1%. As of January 2022, the company's 50-day average price is $339.0. Lululemon Athletica Inc., together with its subsidiaries, designs, distributes, and retails athletic apparel and accessories for women and men. The large-cap Consumer Cyclical company has 29,000 full time employees and is based in Vancouver, Canada. lululemon athletica inc. has not offered any dividends in the last year.

Exceptional EPS Growth with Low Leverage Levels:

2019-01-31 2020-01-31 2021-01-31 2022-01-31
Revenue (MM) $3,288 $3,979 $4,402 $6,257
Revenue Growth n/a 21.01% 10.62% 42.14%
Gross Margins 55.2% 55.9% 56.0% 57.7%
Gross Margins Growth n/a 1.27% 0.18% 3.04%
Operating Margins 21.5% 22.3% 19.3% 22.0%
Operating Margins Growth n/a 3.72% -13.45% 13.99%
Earnings Per Share $3.61 $4.93 $4.5 $7.49
EPS Growth n/a 36.57% -8.72% 66.44%
Free Cash Flow (MM) $517 $386 $574 $995
FCF Growth n/a -25.28% 48.63% 73.24%
Capital Expenditures (MM) -$226 -$283 -$229 -$395
Net Debt / EBITDA -1.06 -0.34 -0.33 -0.23

lululemon athletica inc. Is Overpriced:

Compared to the Consumer Cyclical sector's average of 24.11, lululemon athletica inc. has a trailing twelve month price to earnings (P/E) ratio of 32.2 and, based on its EPS guidance of 11.44, an expected P/E ratio of 26.0.

lululemon athletica inc.'s price to book (P/B) ratio is 12.5 compared to its sector average of 3.11. The company is likley overvalued in terms of its net tangible assets. The company's shares are currently trading 466.8% above their fair value as expressed by Benjamin Graham's formula:

√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 5.13 * 23.833) = $52.45

lululemon athletica inc. Benefits From Positive Market Indicators:

29 analysts are following lululemon athletica inc. and have set target prices ranging from $200 to $516 per share. On average, they have given the company a rating of buy. At the current price of $297.28, LULU is trading -25.01% away from its average analyst target price of $396.44 per share, implying an analyst consensus of strong upside potential for the stock.

The company has an average amount of shares sold short since 3.3% of the company's shares are tied to short positions. Institutions own 90.5% of lululemon athletica inc.'s shares, while the insider ownership rate stands at 4.43%. The biggest shareholder is FMR, LLC with a 15% stake in the company worth approximately $5,451,728,915.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.