lululemon athletica inc. logged a 1.9% change during today's morning session, and is now trading at a price of $196.51 per share.
lululemon athletica inc. returned losses of -19.8% last year, with its stock price reaching a high of $423.32 and a low of $185.95. Over the same period, the stock underperformed the S&P 500 index by -37.9%. AThe company's 50-day average price was $234.53. lululemon athletica inc., together with its subsidiaries, designs, distributes, and retails technical athletic apparel, footwear, and accessories for women and men under the lululemon brand in the United States, Canada, Mexico, China Mainland, Hong Kong, Taiwan, Macau, and internationally. Based in Vancouver, Canada, the Large-Cap Consumer Discretionary company has 39,000 full time employees. lululemon athletica inc. has not offered a dividend during the last year.
Strong Revenue Growth but Similar Gross Margins to the Industry Average of 54.69%:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $3,979 | $4,402 | $6,257 | $8,111 | $9,619 | $10,588 |
| Gross Margins | 56% | 56% | 57% | 55% | 57% | 59% |
| Net Margins | 16% | 13% | 16% | 11% | 16% | 17% |
| Net Income (M) | $646 | $589 | $975 | $855 | $1,550 | $1,815 |
| Net Interest Expense (M) | $8 | -$1 | $1 | $4 | $43 | $0 |
| Depreciation & Amort. (M) | $162 | $185 | $224 | $292 | $379 | $443 |
| Diluted Shares (M) | 131 | 130 | 128 | 127 | 123 | 121 |
| Earnings Per Share | $4.93 | $4.52 | $7.63 | $6.74 | $12.62 | $15.02 |
| EPS Growth | n/a | -8.32% | 68.81% | -11.66% | 87.24% | 19.02% |
| Avg. Price | $180.36 | $290.77 | $372.05 | $321.38 | $511.29 | $192.93 |
| P/E Ratio | 34.68 | 61.73 | 46.8 | 45.91 | 39.88 | 12.28 |
| Free Cash Flow (M) | $386 | $574 | $995 | $328 | $1,644 | $1,583 |
| CAPEX (M) | $283 | $229 | $395 | $639 | $652 | $689 |
| Current Ratio | 2.19 | 2.07 | 1.99 | 2.32 | 2.0 | 2.28 |
lululemon athletica inc. has rapidly growing revenues and increasing reinvestment in the business and exceptional EPS growth. Additionally, the company's financial statements display generally positive cash flows and an excellent current ratio of 2.28. Furthermore, lululemon athletica inc. has similar gross margins to its peers.
a Very Low P/E Ratio but Its Shares Are Expensive:
lululemon athletica inc. has a trailing twelve month P/E ratio of 16.0, compared to an average of 20.93 for the Consumer Discretionary sector. Based on its EPS guidance of $14.93, the company has a forward P/E ratio of 15.7. According to the 17.2% compound average growth rate of lululemon athletica inc.'s historical and projected earnings per share, the company's PEG ratio is 0.93. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 12.6%. On this basis, the company's PEG ratio is 1.27. This implies that the shares are fairly valued. In contrast, lululemon athletica inc. is likely overvalued compared to the book value of its equity, since its P/B ratio of 5.5 is higher than the sector average of 2.93. The company's shares are currently trading 79.4% below their Graham number. Ultimately, lululemon athletica inc.'s strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.
lululemon athletica inc. Has an Average Rating of Buy:
The 30 analysts following lululemon athletica inc. have set target prices ranging from $155.0 to $500.0 per share, for an average of $284.42 with a buy rating. The company is trading -30.9% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
lululemon athletica inc. has an average amount of shares sold short because 6.8% of the company's shares are sold short. Institutions own 96.1% of the company's shares, and the insider ownership rate stands at 9.02%, suggesting a large amount of insider shareholders. The largest shareholder is FMR, LLC, whose 13% stake in the company is worth $2,853,694,952.
