lululemon athletica LULU
lululemon athletica is a Canadian premium athletic and leisure apparel company that designs and sells technical garments and accessories through its own stores and e-commerce, with a strong focus on community and premium branding. LULU trades at a very attractive valuation (P/E 8.34, FCF yield 10.24%) with solid financial health (ND/EBITDA 0.32), but revenue and earnings growth are negative (-4.3% and -5.9%) and momentum is very weak (5th percentile of the 52-week range).
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
lululemon athletica is a Canadian premium athletic and leisure apparel company that designs and sells technical garments and accessories through its own stores and e-commerce, with a strong focus on community and premium branding. LULU trades at a very attractive valuation (P/E 8.34, FCF yield 10.24%) with solid financial health (ND/EBITDA 0.32), but revenue and earnings growth are negative (-4.3% and -5.9%) and momentum is very weak (5th percentile of the 52-week range).
Score by category
| Category | Score |
|---|---|
| Financial health | 7.4 |
| Quality / Moat | 7.7 |
| Valuation | 8.7 |
| Growth | 2.6 |
| Dividend | 1.5 |
| Momentum | 0.5 |
| Risk & Context | 6.7 |
OVERALL SCORE: 6.0/10
Context and risks
The rising interest rate environment (10-year Treasury at 5.17%) affects LULU as a high-valuation discretionary consumer company, although its balance sheet is solid (ND/EBITDA 0.32). The main risk is the weakness in the athletic apparel sector, evidenced by Nike's downgrade, which may pressure already negative revenue growth.
News considered in the analysis
- Lululemon (LULU) Stock Is 80% Below Its All-Time High: 1 Metric That Shows How Bearish Wall Street Has Become. — El titular refleja el sentimiento bajista ya descontado en el precio (la acción está en el percentil 5% de su rango de 52 semanas). No aporta información nueva sobre los fundamentales.
- Is VOO Near an All-Time High a Better Buy Than Lululemon Stock Trading Under $105 Per Share? — Comparativa genérica entre un ETF y una acción individual; sin información específica sobre LULU.
- Stock Market Today, Sept. 25: Nike Downgraded by Bank of America, Shares Flat — La rebaja de Nike por BofA refleja un entorno débil para el sector de ropa deportiva, lo que presiona también a LULU. El impacto es indirecto pero relevante para el sentimiento del sector.
- Deer Park Town Center Trades For $125M, Suburban Retail Buying Spree Rolls On — Noticia inmobiliaria sin relación directa con la operativa de LULU.
- Nike's Near-Term Turnaround Prospects Dim, BofA Says — Refuerza la debilidad del sector de ropa deportiva, con implicaciones para la demanda y la competencia que afectan a LULU.
Verdict: Wait for growth to stabilize before considering an entry; the cheap valuation does not offset declining revenue and weak momentum.
Main risk: The main risk is the persistence of negative revenue and earnings growth in a weak athletic apparel sector environment, which could keep pressure on the stock despite its attractive valuation.
Other Consumer Cyclical companies
Neighbours in the sector ranking, to compare without going back to the index.
See all 1,000+ companies in the index →