Great analysis and commentary. Thanks for your work. The explanations are nice reminders or learning bits for your viewers, too. I'm sure it's repetitive for you to dish them out almost every video but it's appreciated as it helps hammer in principles and attach them to a concrete example.
That's what I thought too. Sure 2% is in line with the last 10 years, but the growth was much higher than what's expected going forward. If one forecasts declining growth then the FCF yield should be adjusted accordingly.
Reducing the yield would increase the 10 year stock price, which is less conservative than the 2% yield. The stock price is derived from the 10 year FCF of 17$ divided by the yield.
I agree! I have never bought any of their products. I’m old do that is probably reason enough. Those who have purchase this stuff some have claimed that LULU has changed it materials to a less desirable on. Don’t know if it’s true. Also claims of overpriced products. Might explain why the are at $259 today. Pity those who purchased based on this video…
I agree about the bit concerning analysts estimates. Around 2021 40 analysts had an average price target of $350 on Carvana when it was clear to anybody with two brain halves that it was a dumpster fire. They just follow price trends.
Really appreciate the content.. My only problem is that it's all about the rear view mirror. The projections in your valuation model are all about using the past to predict the future. This can be very dangerous for companies whose unit economics may no longer be working, who may have a new competiitor, or whose TAM might be shrinking. In reality the analysis should be spent in analyzing future growth prospects, new markets, new product line opportunities, expanding TAM potential, new customers strategies, international expansion opportunities, etc... The market couldn't care less about the past. It's all about the future. And right now, clearly, the market is worried about LULUs future. It's our job to decide if the market is correct. Just forecasting from past financial metrics can be a very dangerous way to do this especially when it comes to growth stocks like LULU.
It's a compounder. It has higher risk than stocks youve examined recently (Cisco and ADP), and i dont like recent stock repurchases at high prices, but it has upside potential associated with growth in asia pacific
Thank you! I've bought shares at 307, definitely going to get more.. Could you do an analysis of LNTH? It has an amazing growth in the past few years, it has an estimated growth of over 30% annually for the next 5 years, and it's undervalued - PE of 12 and PEG of 0.6
@@TomBTerrific I was happy the price was down - I bought more at 248.. stock price will always fluctuate in the short term. I'm looking long term - at least the next 5 years
Whether you bought it at 300, or 247 today, or maybe 220 tomorrow, it's going over 300 and more later. Be careful if you're trying to 'time the market' low. You may miss out on the uptrend.
This caught my eyes as I couldn’t make sense why it went down when their ER wasn’t bad and guidance wasn’t horrible. So why Wall Street hating it? Did JK praised it😅😂 Your videos is timely; thank you!
I’m trying to understand the consumer strength and preferences. To me it seems consumer weakness is a risk to consider. Whereas preferences, it’s seems very strong with women, Nike is the comparably strong brand for men. Any thoughts?
Hang in there. This is a solid company. If you are down today, remember to avoid the pitfall of being short sighted on financially strong growth companies like $LULU. Patience my friend. I legged in to a bunch of $LULU also.
It can be a great business. Many businesses have done this incredibly successfully. The execution becomes a much bigger risk, though. Management would need to continue to do it properly which is harder than organic growth
LULU seems to be experiencing a lack of confidence as the talking heads worry about the strength of the consumer as the kids call them not politically correct. So how long can mood overwhelm fundamentals?
I still don't get why we treat all FCF as it'd be dividends. Imagine a company that is growing 5%, does not pay dividends, uses all FCF for acquisitions to support that 5% growth. Going forward we assume that 5% growth will be there due to acquisitions and we count FCF as dividends, but it will be spent for acquisitions. Sounds like it's counted twice which boots the IRR artificially.
I agree with other people that your cashflow yield assumptions are too aggressive. I would have said 4-5%. Plus, forward earnings is not 17x, but 27x, at least according to Yahoo Finance for end 2024.
building brick and mortar stores is bad. It was for amazon, tesla and other new companies whose customers all came from the web. Why waste margin on real estate and retail employees, and make it easy for customers to do returns. When, they can just stay on the web. Bad move
Apparel business can hardly avoid brick and mortar. Sizing and how it looks will never be completely online. To a certain extent, even cars like Tesla can avoid the showroom but I don;t think clothing, footwear and apparel will ever reach that state completely.
@@leegengxiang2173 Bezos famously said internally, "we do want our customers who need handholding to go to our competitors, it reduces our costs and increases theirs at the same time". every professional I know under the age of 30 hasn't been in a clothing store since precovid. they are brand loyal and know the fit of the brands they are loyal to. Brands like Columbia, Levis, Lulu and Zenni have proven that detailed consistent sizing and fitment lets them grow on platforms like Amazon without brick and mortar. Lulu would be better off expanding into more international markets by mail. Places like Brazil, Southern Europe. There is low hanging fruit and management is building expensive stores. Bad move. That is why its on sale. The story has run to its conclusion. Until management comes with a new geography, or new products (make up or jewelry or shoes or . . . ); its gonna be a value trap.
What about the fickleness of the typical consumer...? Do you really think that Lululemon will be a popular brand 10 years from now? I doubt it. Look at every other "brand retailer" over the last 20 years... Eddie Bauer, American Eagle, Aeropostale, GAP, etc. etc. they don't hold out over time.
Great analysis and commentary. Thanks for your work.
The explanations are nice reminders or learning bits for your viewers, too. I'm sure it's repetitive for you to dish them out almost every video but it's appreciated as it helps hammer in principles and attach them to a concrete example.
Glad you like them!
Missed these vids, Cameron!
timely and awesome. Appreciate your insight 🙌
I just found your channel yesterday after searching for Lockheed Martin analysis. Your analysis is incredible, thanks for posting these videos for us.
Welcome aboard!
Excellent analysis, worth the watch
Great video as always. It would be cool to see you do Nike so we can compare them and see which company is better.
I posted Nike in the cash flow club.
2% fcf yield seems a bit aggressive no ? Given the maturity of the business by then with probably mid single digit growth
I was thinking the same thing. Cannot call 2% conservative. But great video though 😊
That's what I thought too. Sure 2% is in line with the last 10 years, but the growth was much higher than what's expected going forward. If one forecasts declining growth then the FCF yield should be adjusted accordingly.
Reducing the yield would increase the 10 year stock price, which is less conservative than the 2% yield.
The stock price is derived from the 10 year FCF of 17$ divided by the yield.
@@maximepoirier3589 No one said anything about reducing the yield
@@harjotbrar1984good to see punjabi here😅.khich ke
Appreciate your content ❤ especially like you shorts about stock picks. Have a great day
Thanks for saying that
seeing this stock at $235 today is blowing my mind. it makes me want to buy as much shares as i can!
I agree! I have never bought any of their products. I’m old do that is probably reason enough. Those who have purchase this stuff some have claimed that LULU has changed it materials to a less desirable on. Don’t know if it’s true. Also claims of overpriced products. Might explain why the are at $259 today. Pity those who purchased based on this video…
Amazing work as always. Thanks for the Education 🏆
What do you think of their total addressable market? Is it really that big?
Thanks sir for the very detailed break down.
You have earned a subscription. Great content!!
Thanks for such an educational and clear description of your analysis. Subscribed.
Welcome aboard!
appreciate the analysis and explanation good stuff
Great video,man. Thanks! I bought your educational videos. I use it when i buy stocks.
Glad to hear it!
thank you for being teacher and explaining things.
@27:03 Not very conservative to average $7, $2 & $12 when $12 and $7 appear to be outliers. At the very least U should skip $12 (I'd remive $7 too).
I agree about the bit concerning analysts estimates. Around 2021 40 analysts had an average price target of $350 on Carvana when it was clear to anybody with two brain halves that it was a dumpster fire. They just follow price trends.
Can you pls make a video on khc
Really appreciate the content..
My only problem is that it's all about the rear view mirror. The projections in your valuation model are all about using the past to predict the future. This can be very dangerous for companies whose unit economics may no longer be working, who may have a new competiitor, or whose TAM might be shrinking.
In reality the analysis should be spent in analyzing future growth prospects, new markets, new product line opportunities, expanding TAM potential, new customers strategies, international expansion opportunities, etc...
The market couldn't care less about the past. It's all about the future. And right now, clearly, the market is worried about LULUs future. It's our job to decide if the market is correct.
Just forecasting from past financial metrics can be a very dangerous way to do this especially when it comes to growth stocks like LULU.
I agree. Competition is ramping up and Lulu has been dropping product quality. That should've been the focus of discussion.
Excellent work Cam. Just picked up some shares today. Of course I made my own decision.
Fantastic!
Hi Cameron - what investing books could you recommend?
Ok dude! I’ve always liked your skew on things, and not I dig it even more! Thank you for the history lesson🙌
Either it's an LVMH or its a VFC. Fashion is fleeting and unpredictable. But it is compelling.
It's a compounder. It has higher risk than stocks youve examined recently (Cisco and ADP), and i dont like recent stock repurchases at high prices, but it has upside potential associated with growth in asia pacific
Current $366 now, would that take it to 13/14% IRR
What do you think about BLK stock?
I believe they meet the 5 criteria. Or at least 60 percent of them.
Always appreciate the videos!
Hey Cameron! Have you been following the results? Are you still bullish on the stock?
Thank you! I've bought shares at 307, definitely going to get more.. Could you do an analysis of LNTH? It has an amazing growth in the past few years, it has an estimated growth of over 30% annually for the next 5 years, and it's undervalued - PE of 12 and PEG of 0.6
How are you feeling about that purchase now?
@@TomBTerrific I was happy the price was down - I bought more at 248.. stock price will always fluctuate in the short term. I'm looking long term - at least the next 5 years
Cameron address some of the newer comments!
Liked, I'm shocked you are not talking about Nike and UPS
Nike still looks over priced to me.
Amazing analysis. Still over-priced stock though
They mentioned growth will slow down in recent quarter results.
awesome video
Very good. Thank you!
Thank you too!
Whether you bought it at 300, or 247 today, or maybe 220 tomorrow, it's going over 300 and more later. Be careful if you're trying to 'time the market' low. You may miss out on the uptrend.
This caught my eyes as I couldn’t make sense why it went down when their ER wasn’t bad and guidance wasn’t horrible. So why Wall Street hating it? Did JK praised it😅😂
Your videos is timely; thank you!
can you make a video about FIGS? heavy cash on hand, lululemon of healthcare segment
Figs needs better management end of discussion.
Great company, but keep it to the future. It is reaching its 200SMA on the weekly chart. It bounced 7 time in the last three years
I’m trying to understand the consumer strength and preferences. To me it seems consumer weakness is a risk to consider. Whereas preferences, it’s seems very strong with women, Nike is the comparably strong brand for men. Any thoughts?
"For all of you fellow degenerate gamblers out there kudos to you" LOL
i love that shirt
Bought some shares today, lets hope for the best!
Fingers crossed!
Hang in there. This is a solid company. If you are down today, remember to avoid the pitfall of being short sighted on financially strong growth companies like $LULU. Patience my friend. I legged in to a bunch of $LULU also.
If you say that a valid use of free cashflow is acquisitions then how should we value businesses that only grow through acquisitions?
It can be a great business. Many businesses have done this incredibly successfully. The execution becomes a much bigger risk, though. Management would need to continue to do it properly which is harder than organic growth
deeply appreciate this thesis and analysis , "no nonce and to the point" , thanks and I'm not going to panic on my investment on LULU
so I'm guessing you really love it today at $252/shr? thinking about buying here
price is what you pay, value is what you get
@@CstewartCFAis it the same value today? You were saying $400 was its value so it’s a bargain at $259.
@@CstewartCFAis it the same value today? You were saying $400 was its value so it’s a bargain at $259.
The ladies love lululemons, it’s like a status symbol… they keep buying them non stop.
How are they going to afford them now they must repay their student loans?
Love your analysis
As a value investor id like it better if it was trading for $50, good businesses and i understand paying a premium for growth but they are a retailer.
I do like the aggressive stock repurchase program though.
Love the company personally, but this falls into the category of stocks that I’d never pay more than 15 times earnings for like Ben Graham says.
The Apple of yoga pants.
the deal just got sweeter. 348$ per share now.
-100$ today
LULU seems to be experiencing a lack of confidence as the talking heads worry about the strength of the consumer as the kids call them not politically correct. So how long can mood overwhelm fundamentals?
Time to buy LULU down here in the mid-250s
Why?
@@TomBTerrific why not
Like it at $400, you’ll love it at $357
Like it at $357, you’ll love it at $335
Wait until it hits 250, like it, live it, love it.
312 now going under 300 soon CPO leaving… will buy lulu soon
@@theresamorgavi9196 I’d consider it at $250.
How about 299?
295.87 on 7/8/2024
Now it's about $300
I still don't get why we treat all FCF as it'd be dividends.
Imagine a company that is growing 5%, does not pay dividends, uses all FCF for acquisitions to support that 5% growth. Going forward we assume that 5% growth will be there due to acquisitions and we count FCF as dividends, but it will be spent for acquisitions. Sounds like it's counted twice which boots the IRR artificially.
Time to buy now?.hahah.
All my homies hate the mouse.
Hahahahahahah yess
is it possible to review RACE "Ferrari" would it bear lululemon or lemon remains better
I agree with other people that your cashflow yield assumptions are too aggressive. I would have said 4-5%. Plus, forward earnings is not 17x, but 27x, at least according to Yahoo Finance for end 2024.
I like LULU!
Can you do allbirds $BIRD
That one’s going to zero man.
at my daughters school alo yoga is in lululemon is out
alo yoga seems to have worse quality than lululemon
The Numbers say different
Elementary school? 💁
It woyld be more helpful if u provided details.
1k$ for LULU dawg? :D
Yum 299$ 🔥
I hope it's not just a fad and will laat long like Nike
ULTA vs LULU
Seems like a too good to be true company. Wow…
Opportunity
Buy costco.
Theyre gonna eat lulus lunch
building brick and mortar stores is bad. It was for amazon, tesla and other new companies whose customers all came from the web. Why waste margin on real estate and retail employees, and make it easy for customers to do returns. When, they can just stay on the web. Bad move
Apparel business can hardly avoid brick and mortar. Sizing and how it looks will never be completely online. To a certain extent, even cars like Tesla can avoid the showroom but I don;t think clothing, footwear and apparel will ever reach that state completely.
The above comment is correct but also look it from the Apple prism. They are trying to emulate a premium brand with a community.
@@leegengxiang2173 Bezos famously said internally, "we do want our customers who need handholding to go to our competitors, it reduces our costs and increases theirs at the same time". every professional I know under the age of 30 hasn't been in a clothing store since precovid. they are brand loyal and know the fit of the brands they are loyal to. Brands like Columbia, Levis, Lulu and Zenni have proven that detailed consistent sizing and fitment lets them grow on platforms like Amazon without brick and mortar. Lulu would be better off expanding into more international markets by mail. Places like Brazil, Southern Europe. There is low hanging fruit and management is building expensive stores. Bad move. That is why its on sale. The story has run to its conclusion. Until management comes with a new geography, or new products (make up or jewelry or shoes or . . . ); its gonna be a value trap.
What about the fickleness of the typical consumer...? Do you really think that Lululemon will be a popular brand 10 years from now? I doubt it. Look at every other "brand retailer" over the last 20 years... Eddie Bauer, American Eagle, Aeropostale, GAP, etc. etc. they don't hold out over time.
Debt is zero😂? I saw balance sheet. lululemon has the liabilities.😅 What's level of liabilities can be judged to zero debt?
Jesus, debt and liabilities are definitely not the same thing. I suggest educating yourself on the matter.
@@TheKolopololo Okey, I know where I am wrong. Here is cash flow. I am sorry bro.