Is Lululemon Athletica Stock a Good Investment?
Lululemon Athletica Investment Advice | LULU |
- Examine Lululemon Athletica's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Lululemon Athletica's leadership team and their track record. Good management can help Lululemon Athletica navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Apparel, Accessories & Luxury Goods space and any emerging trends that could impact Lululemon Athletica's business and its evolving consumer preferences.
- Compare Lululemon Athletica's performance and market position to its competitors. Analyze how Lululemon Athletica is positioned in terms of product offerings, innovation, and market share.
- Check if Lululemon Athletica pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Lululemon Athletica's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Lululemon Athletica stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Lululemon Athletica is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Lululemon Athletica Stock
Researching Lululemon Athletica's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 89.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.57. Lululemon Athletica recorded earning per share (EPS) of 12.94. The entity had not issued any dividends in recent years. The firm had 2:1 split on the 12th of July 2011.
To determine if Lululemon Athletica is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Lululemon Athletica's research are outlined below:
| Lululemon Athletica has a poor financial position based on the latest SEC disclosures | |
| Over 89.0% of the company shares are owned by institutional investors | |
| Latest headline from zacks.com: Lululemon Gains But Lags Market What You Should Know |
Lululemon Athletica Quarterly Accounts Payable |
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Lululemon Athletica uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Lululemon Athletica. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Lululemon Athletica's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 26th of March 2024 Upcoming Quarterly Report | View | |
| 6th of June 2024 Next Financial Report | View | |
| 31st of January 2024 Next Fiscal Quarter End | View | |
| 26th of March 2024 Next Fiscal Year End | View | |
| 31st of October 2023 Last Quarter Report | View | |
| 31st of January 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Lululemon Athletica's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Lululemon Athletica's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2009-12-09 | 2009-10-31 | 0.09 | 0.1 | 0.01 | 11 | ||
2009-06-11 | 2009-04-30 | 0.04 | 0.05 | 0.01 | 25 | ||
2008-12-11 | 2008-10-31 | 0.06 | 0.07 | 0.01 | 16 | ||
2008-04-02 | 2008-01-31 | 0.1 | 0.11 | 0.01 | 10 | ||
2011-06-10 | 2011-04-30 | 0.2 | 0.22 | 0.02 | 10 | ||
2009-09-10 | 2009-07-31 | 0.05 | 0.07 | 0.02 | 40 | ||
2008-09-11 | 2008-07-31 | 0.07 | 0.09 | 0.02 | 28 | ||
2007-11-29 | 2007-10-31 | 0.04 | 0.06 | 0.02 | 50 |
Know Lululemon Athletica's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Lululemon Athletica is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Lululemon Athletica backward and forwards among themselves. Lululemon Athletica's institutional investor refers to the entity that pools money to purchase Lululemon Athletica's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Flossbach Von Storch Ag | 2024-09-30 | 1.4 M | Schroder Investment Management Group | 2024-06-30 | 1.4 M | Amvescap Plc. | 2024-06-30 | 1.4 M | American Century Companies Inc | 2024-09-30 | 1.2 M | Bank Of New York Mellon Corp | 2024-06-30 | 1.1 M | Legal & General Group Plc | 2024-06-30 | 1 M | Northern Trust Corp | 2024-09-30 | 992.4 K | International Assets Investment Management, Llc | 2024-09-30 | 895.7 K | Nuveen Asset Management, Llc | 2024-06-30 | 875.3 K | Vanguard Group Inc | 2024-09-30 | 13.3 M | Fmr Inc | 2024-09-30 | 10.7 M |
Lululemon Athletica's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 39.37 B.Market Cap |
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Lululemon Athletica's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.22 | 0.16 | |
| Return On Capital Employed | 0.39 | 0.25 | |
| Return On Assets | 0.22 | 0.14 | |
| Return On Equity | 0.37 | 0.23 |
Determining Lululemon Athletica's profitability involves analyzing its financial statements and using various financial metrics to determine if Lululemon Athletica is a good buy. For example, gross profit margin measures Lululemon Athletica's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Lululemon Athletica's profitability and make more informed investment decisions.
Lululemon Athletica's Earnings Breakdown by Geography
Please note, the imprecision that can be found in Lululemon Athletica's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Lululemon Athletica. Check Lululemon Athletica's Beneish M Score to see the likelihood of Lululemon Athletica's management manipulating its earnings.
Evaluate Lululemon Athletica's management efficiency
Lululemon Athletica has return on total asset (ROA) of 0.2257 % which means that it generated a profit of $0.2257 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.4316 %, meaning that it created $0.4316 on every $100 dollars invested by stockholders. Lululemon Athletica's management efficiency ratios could be used to measure how well Lululemon Athletica manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to drop to 0.16 in 2024. Return On Capital Employed is likely to drop to 0.25 in 2024. At this time, Lululemon Athletica's Liabilities And Stockholders Equity is comparatively stable compared to the past year. Total Current Liabilities is likely to gain to about 1.7 B in 2024, whereas Non Current Liabilities Other is likely to drop slightly above 27.7 M in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 33.40 | 19.64 | |
| Tangible Book Value Per Share | 33.21 | 16.05 | |
| Enterprise Value Over EBITDA | 23.29 | 42.90 | |
| Price Book Value Ratio | 14.43 | 16.98 | |
| Enterprise Value Multiple | 23.29 | 42.90 | |
| Price Fair Value | 14.43 | 16.98 | |
| Enterprise Value | 4.1 B | 3.7 B |
The decision-making processes within Lululemon Athletica are key to its success in a competitive market. By evaluating these processes, we assess the stock's potential for future gains.
Beta 1.237 |
Basic technical analysis of Lululemon Stock
As of the 30th of November, Lululemon Athletica secures the Risk Adjusted Performance of 0.1311, mean deviation of 1.65, and Downside Deviation of 2.0. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Lululemon Athletica, as well as the relationship between them.Lululemon Athletica's Outstanding Corporate Bonds
Lululemon Athletica issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Lululemon Athletica uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Lululemon bonds can be classified according to their maturity, which is the date when Lululemon Athletica has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Understand Lululemon Athletica's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Lululemon Athletica's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1311 | |||
| Market Risk Adjusted Performance | 0.6783 | |||
| Mean Deviation | 1.65 | |||
| Semi Deviation | 1.64 | |||
| Downside Deviation | 2.0 | |||
| Coefficient Of Variation | 613.26 | |||
| Standard Deviation | 2.13 | |||
| Variance | 4.53 | |||
| Information Ratio | 0.0984 | |||
| Jensen Alpha | 0.2728 | |||
| Total Risk Alpha | (0.02) | |||
| Sortino Ratio | 0.1047 | |||
| Treynor Ratio | 0.6683 | |||
| Maximum Drawdown | 11.09 | |||
| Value At Risk | (3.09) | |||
| Potential Upside | 3.24 | |||
| Downside Variance | 4.01 | |||
| Semi Variance | 2.69 | |||
| Expected Short fall | (1.72) | |||
| Skewness | 0.494 | |||
| Kurtosis | 0.992 |
| Risk Adjusted Performance | 0.1311 | |||
| Market Risk Adjusted Performance | 0.6783 | |||
| Mean Deviation | 1.65 | |||
| Semi Deviation | 1.64 | |||
| Downside Deviation | 2.0 | |||
| Coefficient Of Variation | 613.26 | |||
| Standard Deviation | 2.13 | |||
| Variance | 4.53 | |||
| Information Ratio | 0.0984 | |||
| Jensen Alpha | 0.2728 | |||
| Total Risk Alpha | (0.02) | |||
| Sortino Ratio | 0.1047 | |||
| Treynor Ratio | 0.6683 | |||
| Maximum Drawdown | 11.09 | |||
| Value At Risk | (3.09) | |||
| Potential Upside | 3.24 | |||
| Downside Variance | 4.01 | |||
| Semi Variance | 2.69 | |||
| Expected Short fall | (1.72) | |||
| Skewness | 0.494 | |||
| Kurtosis | 0.992 |
Consider Lululemon Athletica's intraday indicators
Lululemon Athletica intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Lululemon Athletica stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 14627.63 | |||
| Daily Balance Of Power | 0.2007 | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 321.31 | |||
| Day Typical Price | 321.09 | |||
| Price Action Indicator | (0.08) | |||
| Period Momentum Indicator | 1.14 | |||
| Relative Strength Index | 55.94 |
Lululemon Athletica Corporate Filings
13A | 12th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
F4 | 30th of September 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 29th of August 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 30th of May 2024 Other Reports | ViewVerify |
Lululemon Stock media impact
Far too much social signal, news, headlines, and media speculation about Lululemon Athletica that are available to investors today. That information is available publicly through Lululemon media outlets and privately through word of mouth or via Lululemon internal channels. However, regardless of the origin, that massive amount of Lululemon data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Lululemon Athletica news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Lululemon Athletica relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Lululemon Athletica's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Lululemon Athletica alpha.
Lululemon Athletica Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Lululemon Athletica can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Lululemon Athletica Historical Investor Sentiment
Investor biases related to Lululemon Athletica's public news can be used to forecast risks associated with an investment in Lululemon. The trend in average sentiment can be used to explain how an investor holding Lululemon can time the market purely based on public headlines and social activities around Lululemon Athletica. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Lululemon Athletica's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Lululemon Athletica and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Lululemon Athletica news discussions. The higher the estimate score, the more favorable the investor's outlook on Lululemon Athletica.
Lululemon Athletica Corporate Management
| Howard Tubin | Vice Relations | Profile | |
| Shannon Higginson | Chief Officer | Profile | |
| Susan Gelinas | Chief Officer | Profile | |
| Meghan Frank | Chief Officer | Profile |
Additional Tools for Lululemon Stock Analysis
When running Lululemon Athletica's price analysis, check to measure Lululemon Athletica's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Lululemon Athletica is operating at the current time. Most of Lululemon Athletica's value examination focuses on studying past and present price action to predict the probability of Lululemon Athletica's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Lululemon Athletica's price. Additionally, you may evaluate how the addition of Lululemon Athletica to your portfolios can decrease your overall portfolio volatility.