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Lululemon Athletica Earnings Yield (Joel Greenblatt) %

: 1.90% (As of Oct. 2020)
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Lululemon Athletica's Enterprise Value for the quarter that ended in Oct. 2020 was $42,095 Mil. Lululemon Athletica's EBIT for the trailing twelve months (TTM) ended in Oct. 2020 was $799 Mil. Lululemon Athletica's Earnings Yield (Joel Greenblatt) for the quarter that ended in Oct. 2020 was 1.90%.

NAS:LULU' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 1.5   Med: 4   Max: 8.3
Current: 1.91
1.5
8.3

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Lululemon Athletica was 8.30%. The lowest was 1.50%. And the median was 4.00%.

NAS:LULU's Earnings Yield (Joel Greenblatt) % is ranked lower than
51% of the 1055 Companies
in the Retail - Cyclical industry.

( Industry Median: 2.10 vs. NAS:LULU: 1.91 )

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Lululemon Athletica's Forward Rate of Return (Yacktman) % for the quarter that ended in Oct. 2020 was 20.70%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.

Lululemon Athletica Earnings Yield (Joel Greenblatt) % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Lululemon Athletica Annual Data
Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20
Earnings Yield (Joel Greenblatt) % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.60 4.94 5.15 3.82 2.88

Lululemon Athletica Quarterly Data
Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20
Earnings Yield (Joel Greenblatt) % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.01 2.88 2.73 1.78 1.90
Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.

Lululemon Athletica Earnings Yield (Joel Greenblatt) % Distribution

* The bar in red indicates where Lululemon Athletica's Earnings Yield (Joel Greenblatt) % falls into.


Lululemon Athletica Earnings Yield (Joel Greenblatt) % Calculation

In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.

Lululemon Athleticas Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Jan. 2020 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=889.11/30850.70311
=2.88 %

Lululemon Athletica's Earnings Yield (Joel Greenblatt) for the quarter that ended in Oct. 2020 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT (TTM)/Enterprise Value
=798.562/42,095
=1.90 %

Lululemon Athletica's EBIT for the trailing twelve months (TTM) ended in Oct. 2020 was 416.487 (Jan. 2020 ) + 32.751 (Apr. 2020 ) + 135.873 (Jul. 2020 ) + 213.451 (Oct. 2020 ) = $799 Mil.


Lululemon Athletica  (NAS:LULU) Earnings Yield (Joel Greenblatt) % Explanation

Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.

Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.

Be Aware

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.

Lululemon Athletica Earnings Yield (Joel Greenblatt) % Related Terms

Lululemon Athletica Earnings Yield (Joel Greenblatt) % Headlines

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