Lululemon Athletica Inc. (LULU, Financial) has been making waves in the stock market with a significant surge in its stock price. The company's market cap stands at a robust $51.15 billion, with its stock price currently at $404.19. Over the past week, the stock has seen a gain of 10.56%, and over the past three months, it has rallied by an impressive 23.10%. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. The current GF Value of Lululemon Athletica Inc. is $618.6, compared to $610.49 three months ago. This indicates that the stock is significantly undervalued, a status it has maintained over the past three months.
Unraveling the Success of Lululemon Athletica Inc.
Lululemon Athletica Inc., a key player in the Retail - Cyclical industry, designs, distributes, and markets athletic apparel, footwear, and accessories for women, men, and girls. The company's product range includes pants, shorts, tops, and jackets for both leisure and athletic activities such as yoga and running. Lululemon also sells fitness accessories, such as bags, yoga mats, and equipment. The company sells its products through more than 650 company-owned stores in 18 countries, e-commerce, outlets, and wholesale accounts. Founded in 1998, Lululemon Athletica Inc. is based in Vancouver, Canada.
Profitability: A Key Driver of Lululemon's Success
Lululemon Athletica Inc. boasts a Profitability Rank of 10/10, indicating a high level of profitability compared to its industry peers. The company's operating margin stands at 21.97%, better than 95.15% of the 1093 companies in the same industry. Its ROE and ROA, at 31.77% and 18.29% respectively, are also impressive, outperforming 90.42% and 96.82% of the companies in the industry. The company's ROIC of 31.15% is better than 96% of the companies in the industry. Lululemon has maintained profitability for the past 10 years, a feat achieved by only 0.1% of the companies in the industry.
Impressive Growth Metrics
Lululemon Athletica Inc. has a Growth Rank of 10/10, indicating strong growth compared to its industry peers. The company's 3-year and 5-year revenue growth rate per share stand at 27.80% and 25.80% respectively, outperforming 87.73% and 92.69% of the companies in the industry. The company's future total revenue growth rate is estimated at 14.11%, better than 82.5% of the companies in the industry. The 3-year and 5-year EPS without NRI growth rates are 10.70% and 27.10% respectively, with the future EPS growth rate estimated at 18.57%.
Top Holders of Lululemon Athletica Inc.'s Stock
Andreas Halvorsen (Trades, Portfolio) is the top holder of Lululemon Athletica Inc.'s stock, holding 1,189,594 shares, which accounts for 0.94% of the total shares. The second-largest holder is the Harbor Capital Appreciation Fund (Trades, Portfolio), with 1,037,943 shares, accounting for 0.82% of the total shares. Jim Simons (Trades, Portfolio) holds the third-largest number of shares, with 868,800 shares, accounting for 0.68% of the total shares.
Competitors in the Retail - Cyclical Industry
Lululemon Athletica Inc. faces competition from several companies within the same industry. Ross Stores Inc. (ROST, Financial) has a market cap of $41.46 billion, Burlington Stores Inc. (BURL, Financial) has a market cap of $10.54 billion, and Gap Inc. (GPS, Financial) has a market cap of $4.31 billion.
Conclusion
In conclusion, Lululemon Athletica Inc.'s impressive stock performance, high profitability, and strong growth metrics make it a compelling choice for investors. The company's stock is significantly undervalued according to the GF Value, indicating potential for further growth. With a strong hold on the market and a robust growth strategy, Lululemon Athletica Inc. is well-positioned to continue its upward trajectory in the stock market.
