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 20.33% and Operating profit at 21.95%
- The company is Net-Debt Free
2
The company has declared Negative results for the last 3 consecutive quarters
- OPERATING CASH FLOW(Y) Lowest at USD 1,935.87 MM
- ROCE(HY) Lowest at 32.03%
- RAW MATERIAL COST(Y) Grown by 7.3% (YoY)
3
With ROE of 30.89%, it has a attractive valuation with a 3.55 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 -51.71%, its profits have fallen by -19.4%
4
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 3.76% over the previous quarter.
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -51.71% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
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.
-51.71%
-1.43
46.04%
S&P 500
22.24%
1.67
13.28%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
20.33%
EBIT Growth (5y)
21.95%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.24
Sales to Capital Employed (avg)
2.29
Tax Ratio
29.67%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
73.32%
ROE (avg)
36.10%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
Price to Book Value
3.55
EV to EBIT
7.21
EV to EBITDA
5.90
EV to Capital Employed
4.66
EV to Sales
1.45
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
64.67%
ROE (Latest)
30.89%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
INVENTORY TURNOVER RATIO(HY)
Highest at 2.98 times
-16What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 1,935.87 MM
ROCE(HY)
Lowest at 32.03%
RAW MATERIAL COST(Y)
Grown by 7.3% (YoY
OPERATING PROFIT(Q)
Lowest at USD 420.04 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 16.99 %
PRE-TAX PROFIT(Q)
Lowest at USD 293.44 MM
NET PROFIT(Q)
Lowest at USD 200.07 MM
EPS(Q)
Lowest at USD 1.69
Here's what is working for lululemon athletica, Inc.
Inventory Turnover Ratio
Highest at 2.98 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Depreciation
Highest at USD 135.34 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for lululemon athletica, Inc.
Operating Cash Flow
Lowest at USD 1,935.87 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Operating Profit
Lowest at USD 420.04 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (USD MM)
Operating Profit Margin
Lowest at 16.99 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at USD 293.44 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 200.07 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
Net Profit
Fallen at -26.04%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD 1.69
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Raw Material Cost
Grown by 7.3% (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
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