Stock analysis · Bull Rankings model

LULU analysis

lululemon athletica inc.Apparel Retail. Scored on the same transparent model behind the daily rankings.

LULU
lululemon athletica inc. · Apparel Retail
FCF$1.3bC+
Rev+4.2%C+
D/E0.44B+
P/E9.8xA
PEG0.92B+
63.6Score
$121.07$13.7B
1Y Target$127.92Analyst consensus · 26 analysts
5Y Target$161.50Compound horizon
10Y Target$207.12Long-dated conviction
FCF$1.3bTTM
C+
FCF $1.3b — respectable but not differentiating
Rev+4.2%TTM YoY
C+
Revenue +4.2% — steady but below market-beating range
D/E0.44
B+
D/E 0.44 — below the Consumer Cyclical debt median (≈40th pctile)
P/E9.8x
A
P/E 9.8 — cheapest decile in Consumer Cyclical (≈10th pctile)
PEG0.92
B+
PEG 0.92 — near fair value, classic Lynch benchmark (1.0)

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 63.6
Quality88.4
Growth34.6
Value84.1
Why this score
  • Buying back stock
  • Durable high returns
Entry · Margin of safety
52-week rangeNear 52-week low
46% off the 12-month high
vs DCF fair value34% belowest. fair value ~$184
What the price assumes: free cash flow compounding at ~-7% a year for the next decade — vs the ~3% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability73% · Agross profit ÷ total assets (Novy-Marx)
ROIC33.5% · Areturn on invested capital — not score-weighted

Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.

Why now
Apparel Retail · market cap $13.7b. Down 46% from 52-week high of $225.98 — deep drawdown territory. PEG 0.92 — paying under fair value for the growth rate. 26 sell-side analysts rate this a Hold with a mean 1-yr target of $127.92 (implying +6% upside).
Moat
Net margin 13% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 30% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which.
Risk
Down 46% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up.
Horizon
1-3 yr $127.92 (26-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $161.50 at ~6% CAGR — dividend + buyback compounding. 10 yr $207.12 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

LULU vs the Top Picks average

PillarLULUBook avgDiff
Quality0.880.84+0.05
Growth0.350.84-0.49
Value0.840.78+0.06

Averaged across the 30 names in today's Top Picks (mean score 81.5). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
-9.8 over 47 daily scores
From 73.4 (Jun 22) → 63.6 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Analyst estimate revisions

30-day change-0.2%
90-day change-14.8%
Forward EPS estimate$11.25

Over the last 90 days, what analysts expect LULU to earn is materially lower (-14.8%). The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

A rising estimate means expectations are improving, not that the price has failed to keep up — and estimates get cut as readily as they get raised. It is not part of the Bull Rankings score. Biggest movers across the market →

Shares to buy
16
Position size
$1,937
3.9% of portfolio
Stop price
$90.80
25% below $121.07
$ at risk if stopped
$484.28
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

lululemon athletica inc. (LULU): score, valuation & FAQ

lululemon athletica inc. (LULU) is a Apparel Retail company that scores 63.6 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are P/E (A), D/E (B+) and PEG (B+). On valuation, LULU sits about 34% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly -7% annual free-cash-flow growth over the next decade.

Is LULU a good stock to buy?

Bull Rankings scores LULU 63.6 out of 100 on its quality-growth model, which is a middling reading. That is driven by P/E (A), D/E (B+) and PEG (B+). A score is a quantitative screen of lululemon athletica inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does LULU score 63.6 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). LULU earns its highest marks on P/E (A), D/E (B+) and PEG (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is LULU overvalued or undervalued?

Based on $121.07, LULU sits about 34% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly -7% annual free-cash-flow growth over the next decade. It trades at a 9.8x P/E (graded A). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in LULU?

Down 46% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial advisor.

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