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Lululemon Athletica (NAS:LULU) Piotroski F-Score

: 8 (As of Today)
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Good Sign:

Piotroski F-Score is 8, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Lululemon Athletica has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Lululemon Athletica's Piotroski F-Score or its related term are showing as below:

LULU' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 7   Max: 9
Current: 8

During the past 13 years, the highest Piotroski F-Score of Lululemon Athletica was 9. The lowest was 4. And the median was 7.


Lululemon Athletica Piotroski F-Score Historical Data

The historical data trend for Lululemon Athletica's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Lululemon Athletica Annual Data
Trend Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.00 8.00 5.00 8.00 6.00

Lululemon Athletica Quarterly Data
Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23
Piotroski F-Score 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 5.00 6.00 6.00 7.00 8.00

Competitive Comparison

For the Apparel Retail subindustry, Lululemon Athletica's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* 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. Note that "N/A" values will not show up in the chart.


Lululemon Athletica Piotroski F-Score Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Lululemon Athletica's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Lululemon Athletica's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Oct23) TTM:Last Year (Oct22) TTM:
Net Income was 119.811 + 290.405 + 341.603 + 248.714 = $1,001 Mil.
Cash Flow from Operations was 1046.264 + 45.503 + 476.71 + 389.853 = $1,958 Mil.
Revenue was 2771.838 + 2000.792 + 2209.165 + 2204.218 = $9,186 Mil.
Gross Profit was 1527.619 + 1150.805 + 1298.511 + 1256.664 = $5,234 Mil.
Average Total Assets from the begining of this year (Oct22)
to the end of this year (Oct23) was
(5309.436 + 5607.038 + 5571.544 + 5992.458 + 6022.264) / 5 = $5700.548 Mil.
Total Assets at the begining of this year (Oct22) was $5,309 Mil.
Long-Term Debt & Capital Lease Obligation was $951 Mil.
Total Current Assets was $3,365 Mil.
Total Current Liabilities was $1,448 Mil.
Net Income was 434.504 + 189.998 + 289.521 + 255.47 = $1,169 Mil.

Revenue was 2129.113 + 1613.463 + 1868.328 + 1856.889 = $7,468 Mil.
Gross Profit was 1236.172 + 870.393 + 1055.476 + 1038.852 = $4,201 Mil.
Average Total Assets from the begining of last year (Oct21)
to the end of last year (Oct22) was
(4572.007 + 4942.478 + 4697.212 + 4920.711 + 5309.436) / 5 = $4888.3688 Mil.
Total Assets at the begining of last year (Oct21) was $4,572 Mil.
Long-Term Debt & Capital Lease Obligation was $850 Mil.
Total Current Assets was $2,634 Mil.
Total Current Liabilities was $1,323 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Lululemon Athletica's current Net Income (TTM) was 1,001. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Lululemon Athletica's current Cash Flow from Operations (TTM) was 1,958. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Oct22)
=1000.533/5309.436
=0.18844431

ROA (Last Year)=Net Income/Total Assets (Oct21)
=1169.493/4572.007
=0.25579423

Lululemon Athletica's return on assets of this year was 0.18844431. Lululemon Athletica's return on assets of last year was 0.25579423. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Lululemon Athletica's current Net Income (TTM) was 1,001. Lululemon Athletica's current Cash Flow from Operations (TTM) was 1,958. ==> 1,958 > 1,001 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Oct23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Oct22 to Oct23
=950.954/5700.548
=0.166818

Gearing (Last Year: Oct22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Oct21 to Oct22
=850.373/4888.3688
=0.17395844

Lululemon Athletica's gearing of this year was 0.166818. Lululemon Athletica's gearing of last year was 0.17395844. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Oct23)=Total Current Assets/Total Current Liabilities
=3364.899/1448.114
=2.32364234

Current Ratio (Last Year: Oct22)=Total Current Assets/Total Current Liabilities
=2634.181/1322.835
=1.99131487

Lululemon Athletica's current ratio of this year was 2.32364234. Lululemon Athletica's current ratio of last year was 1.99131487. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Lululemon Athletica's number of shares in issue this year was 126.77. Lululemon Athletica's number of shares in issue last year was 127.82. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=5233.599/9186.013
=0.56973564

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=4200.893/7467.793
=0.56253474

Lululemon Athletica's gross margin of this year was 0.56973564. Lululemon Athletica's gross margin of last year was 0.56253474. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Oct22)
=9186.013/5309.436
=1.73012972

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Oct21)
=7467.793/4572.007
=1.63337305

Lululemon Athletica's asset turnover of this year was 1.73012972. Lululemon Athletica's asset turnover of last year was 1.63337305. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+1+1+1+1
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Lululemon Athletica has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

Lululemon Athletica  (NAS:LULU) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Lululemon Athletica Piotroski F-Score Related Terms

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Lululemon Athletica (NAS:LULU) Business Description

Address
1818 Cornwall Avenue, Vancouver, BC, CAN, V6J 1C7
Lululemon Athletica designs, distributes, and markets athletic apparel, footwear, and accessories for women, men, and girls. Lululemon offers pants, shorts, tops, and jackets for both leisure and athletic activities such as yoga and running. The company also sells fitness accessories, such as bags, yoga mats, and equipment. Lululemon sells its products through more than 680 company-owned stores in 19 countries, e-commerce, outlets, and wholesale accounts. The company was founded in 1998 and is based in Vancouver, Canada.
Executives
Meghan Frank officer: Chief Financial Officer C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J 1C7
Nicole Neuburger officer: Chief Brand Officer C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J 1C7
Calvin Mcdonald director, officer: Chief Executive Officer C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J 1C7
Celeste Burgoyne officer: Pres Americas&Global Guest C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVE, VANCOUVER A1 V6J 1C7
Shane Grant director C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J 1C7
Michelle Sun Choe officer: Chief Product Officer C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVE, VANCOUVER A1 V6J 1C7
David M Mussafer director C/O ADVENT INTERNATIONAL CORP, 75 STATE ST 29TH FLOOR, BOSTON MA 02104
Isabel Mahe director ONE APPLE PARK WAY, MS169:2CL, CUPERTINO CA 95014
Kathryn Henry director C/O LULULEMON ATHLETICA, INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J 1C7
Kourtney Gibson director C/O MARKETAXESS HOLDINGS INC., 55 HUDSON YARDS, 15TH FLOOR, NEW YORK NY 10001
Alison Loehnis director C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J1C7
Andre Maestrini officer: EVP, International C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J 1C7
Glenn Murphy director C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J1C7
Martin Michael Casey director
Jon Mcneill director 45500 FREMONT BLVD, FREMONT CA 94538