LULU FCF Yield Analysis
Updated 81h ago·SEC filings & market data
Key Takeaway
A free cash flow yield of 6.8% means that for every $100 invested in LULU, the company generates $6.80 in free cash flow — the cash left after operating and capital expenses, effectively measuring the cash return on your investment.
Sector Performance
74th percentileLULU
6.7%
Sector Median
4.2%
Sector Avg
9.2%
Prior Period
6.8%(Jul 2026)
Deep Analysis
A free cash flow yield of 6.8% means that for every $100 invested in LULU, the company generates $6.80 in free cash flow — the cash left after operating and capital expenses, effectively measuring the cash return on your investment.
Compared to sector peers, LULU’s yield sits well above the sector median of 4.2%, placing it in the 74th percentile. The metric is decreasing over the last eight quarters, with a quarter-over-quarter decline of -1.4%; a year-over-year change is not available. The combination of a high yield relative to peers but a consistently declining trend suggests that while the current cash return is attractive, deteriorating cash generation may pose a risk to sustaining that level. This mixed picture aligns with the overall NEUTRAL verdict — the strong current yield supports the valuation, but the downward trend introduces caution.
Frequently Asked Questions
What does the FCF Yield tell investors about LULU?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
Who are LULU's closest peers by FCF Yield?
The closest peers by FCF Yield include: JACK (23.5%), BBWI (23.7%), YELP (25.7%), MET (27.9%), WIX (29.2%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master LULU's Valuation
Get the complete institutional research report covering all fundamental and technical metrics.
View full LULU research report →LULU
6.7%
Sector Median
4.2%
Sector Avg
9.2%
How LULU's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.