Lululemon Athletica Inc. (NasdaqGS:LULU)’s Sales Growth of 0.21485 Is Turning Heads

Lululemon Athletica Inc. (NasdaqGS:LULU) of the Personal Goods sector might have recently popped up on investor’s radars as the 15076843 market cap company based out of Canada recently closed at 113.870000.  The stock has seen year over year sales growth of 0.21485 giving it a traded value of $254476.

Investors may be searching for various types of stocks to help diversify the portfolio. Growth stocks include shares of companies that may have the possibility of generating higher than average profit growth and revenues. These companies tend to pump earnings back into the business, and they generally expand quicker than the overall economy. Although growth stocks can be a bit riskier, they can also provide a higher level of reward down the line. Cyclical stocks consist of companies that typically will ride the wave of the overall economy. These shares tend to perform well when the economy is doing well and perform poorer when the economy is faltering.

So how has Lululemon Athletica Inc. (NasdaqGS:LULU) performed in terms of returns?  The ROIC quality score stands at 15.870293 whilet he actual return on invested capital holds at  0.611465.  Lululemon Athletica Inc.’s book to market ratio is at 0.093306 while the book to market mean difference is -0.02860. This indicator tells you how a company is currently valued in terms of Book to Market compared to its average Book to Market over the past 10 years. It’s important to note that BM is the inverse of the Price to book ratio. Thus a high BM ratio means a company is undervalued.

In glancing at some key ratios we note that the Piotroski F-Score is at 7 (1 to 10 scale) and the ERP5 rank is at 6028. The Q.I. Value of Lululemon Athletica Inc. (NasdaqGS:LULU) currently reads 45.00000 on the Quant scale. The Free Cash Flow score of 1.531277 is also swinging some momentum at investors. The Canada based firm is currently valued at 254476.

Some other notable ratios include the Accrual Ratio of -0.062846, the Altman Z score of 18.904125, a Montier C-Score of 4.00000 and a Value Composite rank of 67.

Debt

In looking at some Debt ratios, Lululemon Athletica Inc. (NasdaqGS:LULU) currently has a debt to equity ratio of 0.00000 and a Free Cash Flow to Debt ratio of . This ratio gives insight as to how high the firm’s total debt is compared to its free cash flow generated. In terms of Net Debt to EBIT, that ratio stands at -1.10966. This ratio reveals how easily a firm is able to pay interest and capital on its net outstanding debt. The lower the ratio the better as that indicates that the company is able to meet its interest and capital payments. Lastly we’ll take note of the Net Debt to Market Value ratio. Lululemon Athletica Inc.’s ND to MV current stands at -0.046668. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

Many investors are concerned with the proper portfolio diversification. Stock portfolio diversification entails spreading the investment dollars around to help minimize risk. When investors are creating a portfolio, they may be looking to add a combination of growth, value, income, dividend, and foreign stocks. They may also be spreading out stock picks among various industries. Keeping a mix of stocks that perform differently under certain market conditions can help keep the portfolio afloat when the environment shifts. Holding a few large positions in a small number stocks may lead to trouble if the market turns sour and stock prices decline drastically.

Lululemon Athletica Inc. (NasdaqGS:LULU) are showing an adjusted slope average of the past 125 and 250 days of 53.38493.  The Adjusted Slope 125/250d indicator is equal to the average annualized exponential regression slope, over the past 125 and 250 trading days, multiplied by the coefficient of determination (R2).  The purpose of this calculation is to provide a longer term average adjusted slope value that levels out large share price movements by using the average. This indicator is useful in helping find stocks that have been on a smooth upward trend over the past 6 months to a year.

Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.297156 for Lululemon Athletica Inc. (NasdaqGS:LULU).  The Capex to PPE ratio shows you how capital intensive a company is. Stocks with an increasing (year over year) ratio may be moving to be more capital intensive and often underperform the market. Higher Capex also often means lower Free Cash Flow (Operating cash flow – Capex) generation and lower dividends as companies don’t have the cash to pay dividends if they are investing more in the business.

Many investors are concerned with the proper portfolio diversification. Stock portfolio diversification entails spreading the investment dollars around to help minimize risk. When investors are creating a portfolio, they may be looking to add a combination of growth, value, income, dividend, and foreign stocks. They may also be spreading out stock picks among various industries. Keeping a mix of stocks that perform differently under certain market conditions can help keep the portfolio afloat when the environment shifts. Holding a few large positions in a small number stocks may lead to trouble if the market turns sour and stock prices decline drastically.

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