| Company name | Lululemon Athletica inc. |
| Stock ticker | LULU |
| Live stock price | [stckqut]LULU[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Poor |
| Sales growth | Good |
| EPS growth | Good |
| P/E growth | Poor |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Good |
| Target stock price (TWCA growth scenario) | $266.73 |
| Target stock price (averages with growth) | $260.19 |
| Target stock price (averages with no growth) | $260.19 |
| Target stock price (manual assumptions) | $266.51 |
The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/lulu
Lululemon athletica inc., incorporated on November 21, 2005, is a designer, distributor and retailer of athletic apparel. The Company operates through two segments: Company-operated stores and Direct to consumer. The Company is also engaged in the sale from outlets, showrooms, sales from temporary locations, sales to wholesale accounts, warehouse sales, and license and supply arrangements. As of January 29, 2017, the Company had operated 406 stores located in the United States, Canada, Australia, the United Kingdom, New Zealand, China, Hong Kong, Singapore, South Korea, Germany, Puerto Rico and Switzerland. Its direct to consumer segment generates revenue from its lululemon and ivivva e-commerce Websites, www.lululemon.com and www.ivivva.com, and other country and region specific Websites. The Company operates and distributes finished products from its owned or leased distribution facilities in the United States, Canada and Australia. The Company owns its distribution center in Columbus, Ohio, and leases its other distribution facilities.
Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Lululemon Athletica inc. as long as the indicators that I describe in my book The Confident Investor are favorable.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Lululemon Athletica inc. calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $172.49
- Growth: 0.2
- Current EPS (TTM): $3.67
- P/E: 47
- Future EPS Calc: $9.13
- Future Stock Price Calc: $429.21
- Target stock price: $266.5
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I hope that this makes you a Confident Investor.