Lululemon Athletica Inc (LULU) Stock Analysis
Verdict: WATCH (do not buy)
Americas comp collapse (-12%) and masked Q2 operational miss threaten premium status, offset only by 11.9% FCF yield and $95 support.
Investment score: 46/100
Analysis as of
Is Lululemon Athletica Inc stock worth reviewing? AI model thesis
The model score of 46/100 falls in the HOLD range. The central thesis and factor breakdown explain the assessment.
7-factor investment score
- Valuation: 72/100 (weight 20%)
- Financial Health: 70/100 (weight 15%)
- Technical Momentum: 20/100 (weight 15%)
- Earnings Quality: 25/100 (weight 15%)
- Insider Sentiment: 55/100 (weight 10%)
- Analyst Consensus: 25/100 (weight 10%)
- Risk-Adjusted Return: 40/100 (weight 15%)
Lululemon Athletica Inc opportunities and risks
What speaks for LULU
- Deep discount valuation relative to retail peers and historic multiples.
What speaks against LULU
- Accelerating revenue collapse in core North American market.
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| LULU | 8.2x | 1.0x | 4.7x | 56.1% | 12.8% | 11.9% |
| GIL.TO | 77.9x | 1.4x | 15.3x | 28.2% | 1.3% | 7.6% |
| GOOS.TO | 18.3x | 0.7x | 5.9x | 63.3% | 3.7% | 9.4% |
| IFA.TO | 29.8x | 2.0x | 14.4x | 30.2% | 6.9% | 0.2% |
| UNI.TO | 12.8x | 0.6x | 7.5x | 20.7% | 4.4% | 20.7% |
| MENE.V | 13.9x | 1.5x | 9.1x | 35.1% | 11.1% | 12.4% |
| Peer median | 18.3x | 1.4x | 9.1x | 30.2% | 4.4% | 9.4% |
Frequently asked questions about Lululemon Athletica Inc (LULU)
Is LULU stock a good investment?
The cached TradeMates AI model rates Lululemon Athletica Inc as WATCH (do not buy) with an investment score of 46/100. The model score of 46/100 falls in the HOLD range. The central thesis and factor breakdown explain the assessment. This is algorithmic model output, not personal investment advice.
Is LULU stock a buy?
The TradeMates model verdict for LULU is WATCH (do not buy) with an investment score of 46/100. Treat this as a model signal to review, not a personal buy recommendation.