Lululemon AthleticaLTS:0JVT -3.39%78 Return-on-Tangible-Equity is 16.59% as of Apr. 2026, which is 51% below its 10-year median of 33.86. GuruFocus rates LTS:0JVT with a GF Score™ of 78/100 and a GF Value™ of $356.89 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 1,056 Retail - Cyclical companies, Lululemon Athletica ranks better than 83.71% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Lululemon Athletica's annualized net income for the quarter that ended in Apr. 2026 was $780 Mil. Lululemon Athletica's average shareholder tangible equity for the quarter that ended in Apr. 2026 was $4,703 Mil. Therefore, Lululemon Athletica's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was 16.59%.
The historical rank and industry rank for Lululemon Athletica's Return-on-Tangible-Equity or its related term are showing as below:
LTS:0JVT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 17.79 Med: 33.86 Max: 44.6
Current: 33.11
During the past 13 years, Lululemon Athletica's highest Return-on-Tangible-Equity was 44.60%. The lowest was 17.79%. And the median was 33.86%.
LTS:0JVT's Return-on-Tangible-Equity is ranked better than 83.71% of 1056
companies
in the Retail - Cyclical industry
Industry Median: 8.275
vs LTS:0JVT: 33.11
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Lululemon Athletica Return-on-Tangible-Equity Related Terms
Lululemon Athletica Return-on-Tangible-Equity Historical Data
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The historical data trend for Lululemon Athletica's Return-on-Tangible-Equity 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.
LTS:0JVT vs GAP, VSXY, BURL: Return-on-Tangible-Equity Comparison
For the Apparel Retail subindustry, Lululemon Athletica's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Lululemon Athletica's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Lululemon Athletica's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 16.59% mean?
Lululemon Athletica (LTS:0JVT) has a Return-on-Tangible-Equity of 16.59% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Lululemon Athletica and its competitors. This is 51% below median its historical median of 33.86. Over the past decade, Lululemon Athletica's Return-on-Tangible-Equity has ranged from 17.79 to 44.60. According to the industry distribution chart, Lululemon Athletica ranks #172 out of 1056 companies in the Retail - Cyclical industry, placing it in the top 16.3%.
Is Lululemon Athletica's Return-on-Tangible-Equity too high?
Lululemon Athletica's current Return-on-Tangible-Equity of 16.59% is 51% below median its 10-year median of 33.86. Over the past 10 years, this metric has ranged from a low of 17.79 to a high of 44.60. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.28. Lululemon Athletica's value of 16.59% is 100.5% above this industry median. Based on the distribution chart, Lululemon Athletica ranks #172 out of 1056 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Lululemon Athletica has a GF Score™ of 78/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lululemon Athletica's Return-on-Tangible-Equity compare to GAP and VSXY?
According to the Retail - Cyclical industry distribution chart, Lululemon Athletica ranks #172 out of 1056 companies for Return-on-Tangible-Equity. This places Lululemon Athletica in the top 16% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.28. Lululemon Athletica's value of 16.59% is 100.5% above this benchmark. Historically, Lululemon Athletica's own Return-on-Tangible-Equity has ranged from 17.79 to 44.60 over the past decade. While the company's 10-year median is 33.86 vs. the industry median of 8.28, Lululemon Athletica has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.28, based on 1,056 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lululemon Athletica's current Return-on-Tangible-Equity of 16.59% is 100.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Lululemon Athletica and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lululemon Athletica's current Return-on-Tangible-Equity is 16.59%, which is 51% below median its own 10-year median of 33.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lululemon Athletica stock overvalued right now?
Based on GuruFocus' analysis, Lululemon Athletica (LTS:0JVT) is currently considered Significantly Undervalued. The stock's GF Value™ is $356.89, compared to a current price of $114.98 — trading 67.8% below its estimated fair value. The current Return-on-Tangible-Equity is 16.59%, which is 51% below median its 10-year median of 33.86 and 100.5% above the Retail - Cyclical industry median of 8.28. Lululemon Athletica's overall GF Score™ is 78/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Lululemon Athletica (LTS:0JVT), the current Return-on-Tangible-Equity is 16.59% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lululemon Athletica (LTS:0JVT) Overvalued in 2026?
Based on GuruFocus' analysis, Lululemon Athletica stock appears to be undervalued.
The current stock price of $114.98 is trading 67.8% below its estimated GF Value™ of $356.89.
GuruFocus considers Lululemon Athletica to be Significantly Undervalued.
Key valuation signals for LTS:0JVT:
Return-on-Tangible-Equity: 16.59% (51% below median its 10-year median of 33.86)
GF Value™: $356.89 vs. price of $114.98 (67.8% below fair value)
Industry Position: 100.5% above the Retail - Cyclical median (#172 of 1056)
No single metric tells the full story. See the LTS:0JVT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lululemon Athletica designs, distributes, and markets athletic apparel, footwear, and accessories for women, men, and girls. The company offers 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. It sells its products through digital channels, a small number of wholesale partners, more than 800 company-owned stores in about two dozen countries in North America, Asia, and Western Europe, and about 45 franchised locations in the Middle East and Europe. The company was founded in 1998 and is based in Vancouver, Canada.
78GF Score
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