Apparel & Other Finishd Prods of Fabrics & Similar Matl
Lululemon Athletica Inc., together with its subsidiaries, designs, distributes, and retails athletic apparel, footwear, and accessories under the lululemon brand for women and men. It operates in two segments, Company-Operated Stores and Direct to Consumer. The company offers pants, shorts, tops, and jackets for healthy lifestyle, such as yoga, running, training, and other activities. It also provides fitness- inspired accessories and footwear. The company sells its products through a chain of company-operated stores; outlets; interactive workout platform; yoga and fitness studios, university campus retailers, and other partners; license and supply arrangements; recommerce; and temporary locations, as well as through mobile apps and lululemon.com e-commerce website. It has operations in the United States, the People's Republic of China, Canada, Australia, the United Kingdom, South Korea, Germany, New Zealand, Singapore, Japan, France, Ireland, Spain, Malaysia, Sweden, the Netherlands, Norway, and Switzerland. The company was founded in 1998 and is based in Vancouver, Canada.
Discounted Cash Flow Valuation of Lululemon Athletica Inc.
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
The average Net Margin over the past 5 years is +13.37%.
The trend of Net Margin over the past 5 years is +0.1%.
The average ROA over the past 5 years is +25.73%.
The trend of ROA over the past 5 years is -0.67%.
The average ROE over the past 5 years is +28.08%.
The trend of ROE over the past 5 years is +1.46%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
The Debt/FCF trailing twelve month is 0.00.
The trend of Debt/FCF over the past 5 years is 0.00.
Graham’s Stability measure stands at 0.96.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
The Revenue CAGR over the past 5 years is +25.08%.
The trend of Revenue growth rate over the past 5 years is +2.51%.
The Earnings CAGR over the past 5 years is +27.01%.
The trend of Earnings growth rate over the past 5 years is +2.9%.
The Equity CAGR over the past 5 years is +14.54%.
The trend of Equity growth rate over the past 5 years is +1.93%.
The FCF CAGR over the past 5 years is -0.22%.
The trend of FCF growth rate over the past 5 years is -1.88%.