October 29, 2025 a 03:43 pm
LULU: Fundamental Ratio Analysis - Lululemon Athletica Inc.
Lululemon Athletica Inc. shows significant growth potential driven by its strong brand presence and strategic expansion. The company's robust online and retail operations contribute to its competitive edge. However, market volatility and competition remain challenges.
Fundamental Rating
Lululemon demonstrates solid fundamentals with most scores reflecting strong performance. However, its Debt-to-Equity ratio indicates potential financial leverage concerns.
| Category | Score | Visualization |
|---|---|---|
| Discounted Cash Flow | 5 | |
| Return on Equity | 5 | |
| Return on Assets | 5 | |
| Debt to Equity | 1 | |
| Price to Earnings | 4 | |
| Price to Book | 2 |
Historical Rating
The ratings demonstrate a consistent performance with a stable overall score over time, reflecting sound operational management.
| Date | Overall | DCF | ROE | ROA | D/E | P/E | P/B |
|---|---|---|---|---|---|---|---|
| 2025-10-28 | 4 | 5 | 5 | 5 | 1 | 4 | 2 |
| Current | 4 | 5 | 5 | 5 | 1 | 4 | 2 |
Analyst Price Targets
Analyst targets suggest a strong median potential with consensus favoring continued growth potential at a reasonable valuation.
| High | Low | Median | Consensus |
|---|---|---|---|
| $205 | $120 | $170 | $168.71 |
Analyst Sentiment
Analyst sentiment indicates a strong buy potential, yet some caution as several hold recommendations exist.
| Recommendation | Count | Distribution |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 32 | |
| Hold | 32 | |
| Sell | 5 | |
| Strong Sell | 0 |
Conclusion
Lululemon Athletica Inc. offers a promising investment opportunity, characterized by solid fundamentals and positive analyst sentiment. The company's diversified distribution channels and strong brand significantly support its competitive position. Yet, caution is advised due to the potential for market volatility and the competitive retail landscape. Careful monitoring of financial ratios, particularly in the context of debt management, remains crucial. Overall, the stock appears poised for growth, making it attractive for potential investors.