Should you buy Lululemon stock? (July 2024)

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Lululemon stock analysis. Ticker: $LULU

Lululemon stock has fallen 45% over the past year to under $300 a share. At the latest price, Lululemon has a market cap of 35 billion dollars. With just under 2 billion of cash on the balance sheet the company’s enterprise value is 33.5 billion.

Revenue over the last 12 months comes to 9.8 billion with 1.6 billion of net income and 1.7 billion of free cash flow. So Lululemon stock is now valued at 22 times earnings and 19 times free cash flow. That valuation is right at the bottom of the company’s historical range at a level not seen since 2017.

Lululemon stock has declined this year as investors worry about slowing growth. Management expects growth of 11-12% this year which is much lower than the company is used to. But the most worrying aspect is Lululemon’s North American segment which makes up 61% of total revenue. Growth in that region has slowed from 30% in 2022 to just 2% in the latest quarter.

And so the big concern is that consumers are going cold over the Lululemon brand. Bears points to changing demand for athletic leisure and competition from brands like On Cloud, Alo and Viouri. Apparel is historically a difficult area to invest in, consumers can be fickle and there’s no shortage of brands that have risen and fallen over the years.

#investing #stocks #stockstobuy #3mb
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Really love this visual video approach on the notebook! Thanks a lot!

presycupcake
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This video format is so informative, I like the idea! Thank you!

edwardborgcostanzi
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Great video! Concise but packed with all the info needed

dr.ptrkjc
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Awesome content bro! Please do ENPH and Tesla if possible 🩶🙏

e.lifts
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Please do an analysis on LVMH or CRWD

globalfps
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Can you please describe your process / point to literature that you use to calculate the CAGR? Sometimes you use FCF, sometimes you use revenue growth. Which to use? which is the best?

dudedood
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Excellent analysis. Appreciate the work

MountainGoater
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Would be great to note the median EV/EBITDA and other multiples specific to apparels so we know where they land comparatively. Nice summary, though.

andrewchavez
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Bro, do you have a tutorial of how to get to the formula that you use?

AndrewLee-hx
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In America, Alo and Vuori (especially Vuori) are taking market share aggressively, so LULU increasing their international game as well as coming up with more appealing lines in the US market is necessary for their growth to endure.

blakeaaron
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can you do soundhound (soun) please keep up the great work

ReaLTheKinG
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Your catching a falling knife buy at 220

robertboone
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Thanks! Can you please analyze Evolution AB

valerio