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Direct answer
Lululemon remains a high-quality compounder with exceptional ROIC (25.8%) and solid operating margins (20%+). However, a near-term growth digestion phase—evidenced by expected negative EPS growth in the current year—requires anchoring revenue and earnings to realistic lower-single digit growth paths before assuming trend stabilization. Fair value range: low $182, high $282, with mid-point at $228.
Stock analysis

LULU fair value $182–$282

By StockMarketAgent.AI team· supervised by
विश्लेषित: 2026-05-19अगला अद्यतन: 2026-08-19Methodology v2.4Data cut-off: Quality gate: passSources: all material sources passed deterministic freshness/provenance gatesReview: automatedArchetype: Mature compounder
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मूल्य
$119.22
▲ +109.26 (+91.65%)
उचित मूल्य
$228
$182–$282
रेटिंग
मज़बूत ख़रीद
confidence 82/100
ऊपरी अंतर
+91.7%
upside to fair value
सुरक्षा मार्जिन
$194.21
MoS level · 15%
बाज़ार पूंजीकरण
$14.3B
P/E fwd 9.0
अंग्रेज़ी फ़ॉलबैकHI
अनुवाद होने तक अंग्रेज़ी स्रोत दिखा रहा है
इस रिपोर्ट का अभी अनुवाद नहीं हुआ है। अनुवाद कतार पकड़ने पर कुछ मिनट में रिफ़्रेश करें।

§1 कार्यकारी सारांश

  • Market implies a pessimistic -4.5% perpetual growth, creating a deep discount for a 25.8% ROIC compounder.
  • Clean accounting and robust cash conversion (OCF/NI > 1.0) provide strong fundamental downside support.
  • Extreme peer PEG dispersion justifies isolating core intrinsic cash generation models.
Fair value
$228
Margin of safety
+47.8%
Confidence
82/100
Moat
6.5/10

Educational analysis only — not financial advice. Always do your own due diligence.

$119.22Price
Low $181.93
Mid $228.48
High $281.62

Lululemon remains a high-quality compounder with exceptional ROIC (25.8%) and solid operating margins (20%+). However, a near-term growth digestion phase—evidenced by expected negative EPS growth in the current year—requires anchoring revenue and earnings to realistic lower-single digit growth paths before assuming trend stabilization.

  • Intangible brand equity
    Intangible brand equity
  • Direct-to-consumer distribution scale
    Direct-to-consumer distribution scale
  • Cycle upside
    Consumer demand for premium athleisure remains structurally robust, and international market penetration accelerates rapidly.

§2 बेयर केस

A severe recession combined with an accelerated shift in athleisure trends could force elevated markdowns, permanently impairing gross margins and compressing ROICROICReturn on invested capital. Operating profit (after tax) divided by invested capital. The single best gauge of capital-efficiency. Spread over WACC = economic value created. toward the cost of capital.

इस थीसिस के टूटने के तरीक़े

DTC Moat Erosion

· High

Upstart competitors successfully bifurcate the premium athleisure market, forcing sustained promotional activity and driving gross margins structurally below 50%.

FV impact
Severe
Trigger
12-24 months

International Stagnation

· Medium

China expansion falters due to geopolitical friction or domestic preference, permanently removing the primary long-term growth engine from the terminal valuation.

FV impact
Moderate
Trigger
24-36 months

Macro Demand Shock

· Low

Prolonged consumer discretionary weakness stalls the men's category growth and causes consecutive quarters of negative comparable store sales in North America.

FV impact
Moderate
Trigger
6-12 months
निगरानी हेतु शीघ्र चेतावनी संकेत
मेट्रिकवर्तमानट्रिगर सीमा
Consecutive quarters of declining gross marginsMonitorDeterioration versus the report thesis
Inventory growth substantially outpacing sales growthMonitorDeterioration versus the report thesis
Sustained weakness in direct-to-consumer channel conversionMonitorDeterioration versus the report thesis
Negative comparable store sales in core North American marketsMonitorDeterioration versus the report thesis
Unplanned executive turnover in merchandising or supply chainMonitorDeterioration versus the report thesis

§3 वित्तीय इतिहास

आय विवरण — पिछले छह कालखंड
लाइन आइटमT−0T−1T−2T−3T−4CAGR
अवधि2022-01-312023-01-312024-01-312025-01-312026-01-31Trend
राजस्व$6.26B$8.11B$9.62B$10.59B$11.10B+15.4%
सकल लाभ$3.61B$4.49B$5.61B$6.27B$6.28B+14.9%
परिचालन आय$1.37B$1.73B$2.21B$2.51B$2.21B+12.6%
शुद्ध आय$975.3M$854.8M$1.55B$1.81B$1.58B+12.8%
EPS (डाइल्यूटेड)$7.49$6.68$12.20$14.64$13.26+15.3%
EBITDA$1.60B$2.02B$2.59B$2.95B$2.71B+14.1%
R&D——————
SG&A$2.23B$2.76B$3.40B$3.76B$4.07B+16.3%

गुणवत्ता स्कोर

OCF / शुद्ध आय
1.02×
>1 उच्च आय गुणवत्ता दर्शाता है
लेखा गुणवत्ता गेट
Fail
सेक्टर-समायोजित गेट
ROIC
25.8%
निवेशित पूँजी पर प्रतिफल
खंड 3

Numbers analysis

नकद प्रवाह

Cash-flow quality is reflected in the OCFOperating cash flowCash generated from the company's core operations after working-capital changes but before capital expenditures. The first line of the cash-flow statement. / net incomeNet IncomeNet Income is an income-statement line item used to reconcile revenue to operating profit, pre-tax income, net income, or per-share earnings. It should be compared across periods and against peer disclosure conventions., accounting-quality, and ROICROICReturn on invested capital. Operating profit (after tax) divided by invested capital. The single best gauge of capital-efficiency. Spread over WACC = economic value created. rows above.

पूँजी आवंटन

Capital allocation should be evaluated against reinvestment needs, balance-sheet strength, and shareholder returns.

व्यक्तिगत सब्सक्राइबर — §4 आगे11 और खंड

पूरा विश्लेषण पढ़ें — 11 और खंड.

Competitive moat, industry cycle, peer comparison, intrinsic valuation, sensitivity, scenarios, earnings decision tree, position management, investor perspectives, scorecard, and final recommendation.

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SCENARIOS FAQ

LULU scenarios questions

  1. Each scenario for LULU (LULU) carries a five-year price target, an explicit set of assumptions (growth, terminal multiple, margin path), and a probability weight calibrated against current visibility.

FAQ

LULU — frequently asked questions

  1. Based on our latest analysis, LULU looks meaningfully undervalued. The current price is $119 versus a composite fair-value midpoint of $228 (range $182–$282), which implies roughly 91.7% upside to the midpoint.

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