Validea’s Guru Fundamental Report: LULULEMON ATHLETICA INC (LULU)

Of the 22 guru strategies we follow, LULU rates highest using our Patient Investor model, which is based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.

LULULEMON ATHLETICA INC (LULU) is a large-cap growth stock operating in the Retail (Apparel) industry. Using the Patient Investor strategy, the stock earns a rating of 79% based on the firm’s underlying fundamentals and the stock’s valuation. Typically, a score of 80% or above indicates that the strategy has some interest in the stock, while a score above 90% signals strong interest.

The table below summarizes whether LULU meets each of this strategy’s criteria. Note that not all criteria carry equal weight or are independent, but this overview highlights the firm’s strengths and weaknesses within the context of the Patient Investor model:

– Earnings Predictability: PASS
– Debt Service: PASS
– Return on Equity: PASS
– Return on Total Capital: PASS
– Free Cash Flow: PASS
– Use of Retained Earnings: PASS
– Share Repurchase: PASS
– Initial Rate of Return: FAIL
– Expected Return: PASS

**Detailed Analysis of LULULEMON ATHLETICA INC (LULU)**

LULU displays solid fundamentals aligned with Warren Buffett’s investment principles, demonstrating strong profitability, prudent debt management, and effective capital allocation—factors that contribute to its favorable rating under the Patient Investor strategy.

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### More Information on Warren Buffett

Warren Buffett is widely regarded as one of the greatest investors of all time. As chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, becoming one of the world’s richest individuals. Forbes estimates his net worth at approximately $37 billion.

Despite his immense wealth, Buffett is known for his modest lifestyle. He still resides in the modest gray stucco home he purchased in Nebraska for $31,500 nearly 50 years ago. His folksy Midwestern manner and love of simple pleasures—a cherry Coke, a good burger, and a good book—are well-documented and have endeared him to many.

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### Additional Research Links

– [Top NASDAQ 100 Stocks]
– [Factor-Based ETF Portfolios]
– [Harry Browne Permanent Portfolio]
– [Ray Dalio All Weather Portfolio]
– [High Shareholder Yield Stocks]

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### About Validea

Validea is an investment research service that follows the published strategies of legendary investors. We offer both stock analysis and model portfolios based on gurus who have outperformed the market over the long term, including Warren Buffett, Benjamin Graham, Peter Lynch, and Martin Zweig.

For more information about Validea, [click here].

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*The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.*
https://www.nasdaq.com/articles/lulu-quantitative-stock-analysis-warren-buffett-0