Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin19.9%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin14.2%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
A
Years to Pay Off Debt1.1 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt$875M
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$2.4B
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
N/A
Cash Flow
C
Free Cash Flow$922M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income43.1%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$2.8B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Data
Key Margins
Gross Profit56.6%
Operating Margin19.9%
Net Margin14.2%
Company Info
Showing Key Metrics
Income Highlights
Metric
2026
2025
2024
2023
2022
Gross Profit %
56.6%▼
59.2%▲
58.3%▲
55.4%•
N/A
Operating Margin %
19.9%▼
23.7%▲
22.9%▲
21.3%•
N/A
Net Income %
14.2%▼
17.1%▲
16.1%▲
10.5%•
N/A
Diluted EPS
13.26▼
14.64▲
12.20▲
6.68•
N/A
Balance Sheet Highlights
Metric
2026
2025
2024
2023
2022
Total Assets
$8.5B
$7.6B
$7.1B
$5.6B
N/A
Total Debt
$1.8B▲
$1.6B▲
$1.4B▲
$1.1B•
N/A
Working Capital
$2.4B▲
$2.1B▼
$2.4B▲
$1.7B•
N/A
Years to Pay Debt
1.14
0.87
0.91
1.25
N/A
Cash Flow Highlights
Metric
2026
2025
2024
2023
2022
Free Cash Flow
$922M▼
$1.6B▼
$1.6B▲
$328M•
N/A
Owner Earnings
$2.8B
$3.0B
$2.6B
$1.8B
N/A
CapEx % of Net Income
43.1%
38.0%
42.1%
74.7%
N/A
Income Statement
2026
2025
2024
2023
2022
Tax Effect Of Unusual Items
0
0
-21,456
-142,786
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
2,706,843
2,952,221
2,661,062
2,415,665
Total Unusual Items
0
0
-74,501
-397,733
Total Unusual Items Excluding Goodwill
0
0
-74,501
-397,733
Net Income From Continuing Operation Net Minority Interest
1,579,183
1,814,616
1,550,190
854,800
Reconciled Depreciation
496,228
446,524
379,384
291,791
Reconciled Cost Of Revenue
4,329,201
3,873,526
3,635,499
3,335,139
EBITDA
2,706,843
2,952,221
2,586,561
2,017,932
EBIT
2,210,615
2,505,697
2,207,177
1,726,141
Normalized Income
1,579,183
1,814,616
1,603,235
1,109,747
Net Income From Continuing And Discontinued Operation
1,579,183
1,814,616
1,550,190
854,800
Total Expenses
8,891,985
8,082,429
7,412,101
6,384,377
Total Operating Income As Reported
2,210,615
2,505,697
2,132,676
1,328,408
Diluted Average Shares
119,068
123,935
127,060
128,017
Basic Average Shares
118,981
123,735
126,726
127,666
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
1,579,183
1,814,616
1,550,190
854,800
Net Income Common Stockholders
1,579,183
1,814,616
1,550,190
854,800
Net Income
1,579,183
1,814,616
1,550,190
854,800
Net Income Including Noncontrolling Interests
1,579,183
1,814,616
1,550,190
854,800
Net Income Continuous Operations
1,579,183
1,814,616
1,550,190
854,800
Tax Provision
659,784
761,461
625,545
477,771
Pretax Income
2,238,967
2,576,077
2,175,735
1,332,571
Other Income Expense
28,352
70,380
-31,442
-393,570
Other Non Operating Income Expenses
28,352
70,380
43,059
4,163
Special Income Charges
0
0
-74,501
-397,733
Gain On Sale Of Ppe
0
0
10,180
0
Impairment Of Capital Assets
0
0
44,186
407,913
Restructuring And Mergern Acquisition
0
30,315
0
41,394
Operating Income
2,210,615
2,505,697
2,207,177
1,726,141
Operating Expense
4,073,517
3,765,114
3,402,228
2,766,199
Depreciation Amortization Depletion Income Statement
6,961
2,735
5,010
8,752
Depreciation And Amortization In Income Statement
6,961
2,735
5,010
8,752
Amortization
6,961
2,735
5,010
8,752
Amortization Of Intangibles Income Statement
6,961
2,735
5,010
8,752
Selling General And Administration
4,066,556
3,762,379
3,397,218
2,757,447
Gross Profit
6,284,132
6,270,811
5,609,405
4,492,340
Cost Of Revenue
4,818,468
4,317,315
4,009,873
3,618,178
Total Revenue
11,102,600
10,588,126
9,619,278
8,110,518
Operating Revenue
11,102,600
10,588,126
9,619,278
8,110,518
Balance Sheet
2026
2025
2024
2023
2022
Ordinary Shares Number
116,496
121,282
126,222
127,321
Share Issued
116,496
121,282
126,222
127,321
Total Debt
1,798,441
1,575,791
1,403,282
1,070,334
Tangible Book Value
4,770,646
4,152,856
4,207,998
3,102,694
Invested Capital
4,961,840
4,324,047
4,232,081
3,148,799
Working Capital
2,375,153
2,140,672
2,429,316
1,667,255
Net Tangible Assets
4,770,646
4,152,856
4,207,998
3,102,694
Capital Lease Obligations
1,798,441
1,575,791
1,403,282
1,070,334
Common Stock Equity
4,961,840
4,324,047
4,232,081
3,148,799
Total Capitalization
4,961,840
4,324,047
4,232,081
3,148,799
Total Equity Gross Minority Interest
4,961,840
4,324,047
4,232,081
3,148,799
Stockholders Equity
4,961,840
4,324,047
4,232,081
3,148,799
Gains Losses Not Affecting Retained Earnings
-230,690
-424,441
-264,256
-252,584
Other Equity Adjustments
-230,690
-424,441
-264,256
-252,584
Retained Earnings
4,522,581
4,109,717
3,920,362
2,926,127
Additional Paid In Capital
669,392
638,190
575,369
474,645
Capital Stock
557
581
606
611
Common Stock
557
581
606
611
Total Liabilities Net Minority Interest
3,494,903
3,279,245
2,859,860
2,458,239
Total Non Current Liabilities Net Minority Interest
1,607,355
1,439,615
1,228,599
966,041
Other Non Current Liabilities
55,360
40,790
29,201
20,040
Tradeand Other Payables Non Current
0
15,864
28,555
38,074
Non Current Deferred Liabilities
52,278
98,188
29,522
55,084
Non Current Deferred Taxes Liabilities
52,278
98,188
29,522
55,084
Long Term Debt And Capital Lease Obligation
1,499,717
1,300,637
1,154,012
862,362
Long Term Capital Lease Obligation
1,499,717
1,300,637
1,154,012
862,362
Current Liabilities
1,887,548
1,839,630
1,631,261
1,492,198
Other Current Liabilities
120,484
140,880
65,410
77,817
Current Deferred Liabilities
316,632
308,352
306,479
251,478
Current Deferred Revenue
316,632
308,352
306,479
251,478
Current Debt And Capital Lease Obligation
298,724
275,154
249,270
207,972
Current Capital Lease Obligation
298,724
275,154
249,270
207,972
Pensionand Other Post Retirement Benefit Plans Current
187,887
204,543
326,110
248,167
Current Provisions
70,611
73,892
61,634
55,528
Payables And Accrued Expenses
893,210
836,809
622,358
651,236
Current Accrued Expenses
492,488
365,310
258,731
284,100
Payables
400,722
471,499
363,627
367,136
Total Tax Payable
69,301
200,093
15,186
194,404
Income Tax Payable
43,948
183,126
12,098
174,221
Accounts Payable
331,421
271,406
348,441
172,732
Total Assets
8,456,743
7,603,292
7,091,941
5,607,038
Total Non Current Assets
4,194,042
3,622,990
3,031,364
2,447,585
Other Non Current Assets
253,793
193,765
154,859
127,598
Non Current Prepaid Assets
61,117
44,076
31,825
28,447
Non Current Deferred Assets
24,037
17,085
9,176
6,402
Non Current Deferred Taxes Assets
24,037
17,085
9,176
6,402
Goodwill And Other Intangible Assets
191,194
171,191
24,083
46,105
Other Intangible Assets
6,283
11,673
21,961
71,299
Goodwill
184,911
159,518
24,083
24,144
Net PPE
3,663,901
3,196,873
2,811,421
2,239,033
Accumulated Depreciation
-1,862,850
-1,461,049
-1,217,425
-987,298
Gross PPE
5,526,751
4,657,922
4,028,846
3,226,331
Leases
1,400,487
1,227,247
1,006,926
818,071
Construction In Progress
378,226
206,398
247,943
244,898
Other Properties
1,630,181
1,416,256
1,265,610
969,419
Machinery Furniture Equipment
2,009,651
1,705,905
1,399,837
1,084,401
Buildings And Improvements
28,816
27,655
29,032
28,850
Land And Improvements
79,390
74,461
79,498
80,692
Current Assets
4,262,701
3,980,302
4,060,577
3,159,453
Other Current Assets
35,880
26,931
46,652
79,962
Hedging Assets Current
30,996
76,848
647
16,707
Prepaid Assets
144,744
147,680
137,203
142,003
Inventory
1,700,753
1,442,081
1,323,602
1,447,367
Inventories Adjustments Allowances
-88,823
-83,974
-141,474
-124,614
Other Inventories
1,789,576
1,526,055
1,465,076
1,571,981
Receivables
543,126
302,426
308,502
318,547
Taxes Receivable
352,469
182,253
183,733
185,641
Accounts Receivable
190,657
120,173
124,769
132,906
Cash And Cash Equivalents
1,807,202
1,984,336
2,243,971
1,154,867
Cash Flow
2026
2025
2024
2023
2022
Free Cash Flow
921,675
1,583,481
1,644,299
327,806
Repurchase Of Capital Stock
-1,178,349
-1,636,879
-558,652
-444,001
Capital Expenditure
-680,802
-689,232
-651,865
-638,657
Interest Paid Supplemental Data
1,028
478
234
116
Income Tax Paid Supplemental Data
579,178
824,213
502,136
245,213
End Cash Position
1,807,202
1,984,336
2,243,971
1,154,867
Beginning Cash Position
1,984,336
2,243,971
1,154,867
1,259,871
Effect Of Exchange Rate Changes
91,163
-81,666
-4,100
-34,043
Changes In Cash
-268,297
-177,969
1,093,204
-70,961
Financing Cash Flow
-1,208,656
-1,652,508
-548,828
-467,487
Cash Flow From Continuing Financing Activities
-1,208,656
-1,652,508
-548,828
-467,487
Net Other Financing Charges
-38,684
-35,442
-32,606
-35,190
Proceeds From Stock Option Exercised
8,377
19,813
42,430
11,704
Net Common Stock Issuance
-1,178,349
-1,636,879
-558,652
-444,001
Common Stock Payments
-1,178,349
-1,636,879
-558,652
-444,001
Investing Cash Flow
-662,118
-798,174
-654,132
-569,937
Cash Flow From Continuing Investing Activities
-662,118
-798,174
-654,132
-569,937
Net Other Investing Changes
-8,521
-5,009
-658
20,916
Net Investment Purchase And Sale
27,205
50,213
-1,609
47,804
Purchase Of Investment
-23,389
Net Business Purchase And Sale
0
-154,146
0
0
Purchase Of Business
0
-154,146
0
0
Net PPE Purchase And Sale
-680,802
-689,232
-651,865
-638,657
Purchase Of PPE
-680,802
-689,232
-651,865
-638,657
Operating Cash Flow
1,602,477
2,272,713
2,296,164
966,463
Cash Flow From Continuing Operating Activities
1,602,477
2,272,713
2,296,164
966,463
Change In Working Capital
-409,440
-51,895
199,223
-659,920
Change In Other Working Capital
48,137
65,911
121,850
92,171
Change In Other Current Liabilities
20,632
2,488
12,230
-2,925
Change In Other Current Assets
-70,351
-73,205
-53,280
-36,518
Change In Payables And Accrued Expense
-30,956
181,190
2,764
41,324
Change In Accrued Expense
73,684
81,029
-1,407
112,618
Change In Payable
-104,640
100,161
4,171
-71,294
Change In Account Payable
45,856
-57,044
177,367
-107,280
Change In Tax Payable
-150,496
157,205
-173,196
35,986
Change In Income Tax Payable
-150,496
157,205
-173,196
35,986
Change In Prepaid Assets
-122,437
-73,820
42,495
-121,547
Change In Inventory
-188,710
-156,085
66,584
-573,438
Change In Receivables
-65,755
1,626
6,580
-58,987
Changes In Account Receivables
-65,755
1,626
6,580
-58,987
Other Non Cash Items
-37,766
-36,231
-28,547
-23,337
Stock Based Compensation
62,203
90,011
93,560
78,075
Provisionand Write Offof Assets
0
0
23,709
62,928
Asset Impairment Charge
0
0
74,501
407,913
Deferred Tax
-53,379
57,451
-28,383
3,042
Deferred Income Tax
-53,379
57,451
-28,383
3,042
Depreciation Amortization Depletion
496,228
446,524
379,384
291,791
Depreciation And Amortization
496,228
446,524
379,384
291,791
Amortization Cash Flow
7,000
2,700
5,000
8,800
Amortization Of Intangibles
7,000
2,700
5,000
8,800
Depreciation
489,700
443,300
374,000
282,700
Operating Gains Losses
-34,552
-47,763
32,527
-48,829
Gain Loss On Investment Securities
-34,552
-47,763
32,527
-38,649
Gain Loss On Sale Of PPE
0
0
-10,180
0
Net Income From Continuing Operations
1,579,183
1,814,616
1,550,190
854,800
4/5
Graham Score
Enterprising Investor
Requires deeper research. Suited for active investors.
Graham's Fair Value
N/A
N/A — requires
positive EPS and positive book value per share. Check the Financials tab for earnings history.
Margin of Safety
—
Market Cap / Net Assets
N/A
Net Assets: $5.0B
Warren's Owner Earnings
$2.8B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
4/5 — Enterprising Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$11.1B
vs > $1.5B revenue
✅
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
2.26x
vs Current Ratio > 2.0x
✅
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
No loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
✅
Earnings Growth
EPS grew from $6.68 to $13.26 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
+98.5% EPS growth
vs > 33% EPS growth
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $11.1Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
✅ Strong Financial Condition — 2.26xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
✅ Earnings Stability — No loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $6.68 to $13.26 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
These metrics estimate what LULU is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
N/A
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
N/A
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
26.6%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2026
2025
2024
2023
2022
Capital Expenditure % of Net Income
43.1%
38.0%
42.1%
74.7%
N/A
Repurchase of Capital Stock
-$1.2B
-$1.6B
-$559M
-$444M
N/A
Free Cash Flow
$922M▼
$1.6B▼
$1.6B▲
$328M•
N/A•
Warren's Owner Earnings
$2.8B
$3.0B
$2.6B
$1.8B
N/A
Peers & Industry
No auto-detected peers for this industry. You can manually compare LULU against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
No management data available.
Risk Analysis
LULU (LULU) fundamental analysis — Overall grade B based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A. Gross profit margin: 56.6%. Operating margin: 19.9%. Net margin: 14.2%. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
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