ScoreWhy is lululemon athletica, Inc. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 36.10%
- Healthy long term growth as Net Sales has grown by an annual rate of 22.16% and Operating profit at 25.80%
- Company has a low Debt to Equity ratio (avg) at times
2
The company has declared negative results in Apr'2025 after 5 consecutive positive quarters
- OPERATING CASH FLOW(Y) Lowest at USD 1,861 MM
- DEBTORS TURNOVER RATIO(HY) Lowest at 56.25 times
- RAW MATERIAL COST(Y) Grown by 5.1% (YoY)
3
With ROE of 41.25%, it has a attractive valuation with a 4.86 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -49.05%, its profits have risen by 5.6% ; the PEG ratio of the company is 1.4
4
High Institutional Holdings at 91.81%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
5
Below par performance in long term as well as near term
- Along with generating -49.05% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to lululemon athletica, Inc. should be less than 10%
- Overall Portfolio exposure to E-Retail/ E-Commerce should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in E-Retail/ E-Commerce)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is lululemon athletica, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
lululemon athletica, Inc.
-49.05%
-0.99
50.85%
S&P 500
20.12%
1.04
19.28%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
22.16%
EBIT Growth (5y)
25.80%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.24
Sales to Capital Employed (avg)
2.31
Tax Ratio
29.67%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
91.81%
ROCE (avg)
73.32%
ROE (avg)
36.10%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
4.86
EV to EBIT
8.19
EV to EBITDA
6.87
EV to Capital Employed
5.80
EV to Sales
1.88
PEG Ratio
1.38
Dividend Yield
NA
ROCE (Latest)
70.83%
ROE (Latest)
41.25%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
NO KEY POSITIVE TRIGGERS
-8What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 1,861 MM
DEBTORS TURNOVER RATIO(HY)
Lowest at 56.25 times
RAW MATERIAL COST(Y)
Grown by 5.1% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 16.15 %
OPERATING PROFIT MARGIN(Q)
Lowest at 22.3 %
EPS(Q)
Lowest at USD 2.59
Here's what is not working for lululemon athletica, Inc.
Debtors Turnover Ratio
Lowest at 56.25 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Operating Cash Flow
Lowest at USD 1,861 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Operating Profit Margin
Lowest at 22.3 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
EPS
Lowest at USD 2.59
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Debt-Equity Ratio
Highest at 16.15 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Raw Material Cost
Grown by 5.1% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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