Qualtix Stock Brief
Lululemon Athletica Inc. (LULU) stock analysis: business quality, valuation, and entry timing
Lululemon designs and sells premium athletic apparel through its own stores and online. High gross margins and a net cash position support its business quality, while growth outside North America is a key question. Public Qualtix model snapshot from 2026-10-26 for LULU: business quality 88/100, a strong model reading and valuation Very Cheap. Today's verdict and Entry Timing are shown after a free sign-in.
Qualtix evaluates LULU with a rules-based model that separates business quality, valuation, entry timing, red flags, and data confidence. The model scores first; AI explanations and the full Clean Brief help explain the result afterward.
Coverage note: Qualtix can analyze supported US stocks when SEC/FMP filing data is available. The 1,000+ stock universe refers to the daily screener used for discovery, not the full analysis limit.
LULU public evidence metrics from the latest validated Qualtix snapshot
| Metric | Value | Why it matters | Source |
|---|---|---|---|
| Revenue growth | 7.9% | 3-year revenue CAGR | FMP, computed |
| FCF margin | 12.2% | Free cash flow divided by revenue | FMP, computed |
| Operating margin | 17.8% | Profitability margin | FMP, computed |
| Gross margin | 56.1% | Revenue retained after direct costs | FMP, computed |
| Return on capital (pre-tax) | 28.4% | Operating profit before tax, divided by equity plus debt | FMP, computed |
| ROE | 29.6% | Return on equity | FMP, computed |
| Cash and debt | Cash $1.4B / Debt $2.1B | Balance-sheet context | FMP, reported |
| TTM P/E | 8.2x | Price to trailing earnings | FMP, computed |
Qualtix view
- Business quality: 88/100, a strong model reading.
- Valuation is currently labeled Very Cheap, so price is a supporting part of the model view.
Today's verdict
- Today's model verdict and Entry Timing for LULU update every market day and are shown after a free sign-in.
Data and snapshot dates
- Model snapshot date: 2026-10-26.
- Financial data through: 2026-08-02.
- Scored by the current Qualtix model.
- Data-confidence status: high.
What supports the current view
- Business quality is a major strength in the public model snapshot (88/100).
- Valuation is labeled Very Cheap by the current model view.
- Beta of 0.92 suggests lower market sensitivity than higher-beta alternatives.
What weakens the current view
- A public snapshot is a research starting point, not a prediction or recommendation.
What changed
- Business Quality was unchanged from the previous snapshot.
What to research next
- Verify whether Lululemon Athletica Inc.'s moat, margins, growth, and capital efficiency still justify a 88/100 Business Quality score.
- Check whether the Very Cheap valuation label reflects a real mismatch or a business concern that deserves more research.
- Compare LULU with NKE and TGT to see whether the model edge is company-specific or sector-wide.
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Qualtix is for research and education only. It is not financial advice.