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LOWE'S COS INC (LOW) Stock Fundamental Analysis

NYSE:LOW - New York Stock Exchange, Inc. - US5486611073 - Common Stock - Currency: USD

252.66  +2.4 (+0.96%)

After market: 252.66 0 (0%)

Fundamental Rating

6

LOW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 120 industry peers in the Specialty Retail industry. LOW scores excellent on profitability, but there are some minor concerns on its financial health. LOW has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

LOW had positive earnings in the past year.
In the past year LOW had a positive cash flow from operations.
Each year in the past 5 years LOW has been profitable.
LOW had a positive operating cash flow in each of the past 5 years.
LOW Yearly Net Income VS EBIT VS OCF VS FCFLOW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

1.2 Ratios

With an excellent Return On Assets value of 15.28%, LOW belongs to the best of the industry, outperforming 93.16% of the companies in the same industry.
LOW's Return On Invested Capital of 29.80% is amongst the best of the industry. LOW outperforms 95.73% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LOW is significantly above the industry average of 12.41%.
Industry RankSector Rank
ROA 15.28%
ROE N/A
ROIC 29.8%
ROA(3y)17.32%
ROA(5y)15.04%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)32.86%
ROIC(5y)29.02%
LOW Yearly ROA, ROE, ROICLOW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 -100 200 300 400

1.3 Margins

With an excellent Profit Margin value of 8.17%, LOW belongs to the best of the industry, outperforming 87.18% of the companies in the same industry.
LOW's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.24%, LOW belongs to the top of the industry, outperforming 88.03% of the companies in the same industry.
In the last couple of years the Operating Margin of LOW has grown nicely.
With a Gross Margin value of 33.21%, LOW perfoms like the industry average, outperforming 40.17% of the companies in the same industry.
LOW's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 12.24%
PM (TTM) 8.17%
GM 33.21%
OM growth 3Y3.04%
OM growth 5Y12.99%
PM growth 3Y11.21%
PM growth 5Y22.49%
GM growth 3Y0.39%
GM growth 5Y0.78%
LOW Yearly Profit, Operating, Gross MarginsLOW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LOW is creating value.
The number of shares outstanding for LOW has been reduced compared to 1 year ago.
LOW has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LOW has a worse debt to assets ratio.
LOW Yearly Shares OutstandingLOW Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M
LOW Yearly Total Debt VS Total AssetsLOW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

2.2 Solvency

LOW has an Altman-Z score of 3.71. This indicates that LOW is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LOW (3.71) is better than 78.63% of its industry peers.
The Debt to FCF ratio of LOW is 4.54, which is a neutral value as it means it would take LOW, 4.54 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.54, LOW is in the better half of the industry, outperforming 65.81% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 4.54
Altman-Z 3.71
ROIC/WACC3.01
WACC9.9%
LOW Yearly LT Debt VS Equity VS FCFLOW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B -10B 20B 30B

2.3 Liquidity

A Current Ratio of 1.13 indicates that LOW should not have too much problems paying its short term obligations.
LOW has a Current ratio of 1.13. This is in the lower half of the industry: LOW underperforms 70.09% of its industry peers.
LOW has a Quick Ratio of 1.13. This is a bad value and indicates that LOW is not financially healthy enough and could expect problems in meeting its short term obligations.
LOW's Quick ratio of 0.23 is on the low side compared to the rest of the industry. LOW is outperformed by 83.76% of its industry peers.
Industry RankSector Rank
Current Ratio 1.13
Quick Ratio 0.23
LOW Yearly Current Assets VS Current LiabilitesLOW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

3

3. Growth

3.1 Past

LOW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.90%.
The Earnings Per Share has been growing by 20.69% on average over the past years. This is a very strong growth
The Revenue has decreased by -7.20% in the past year.
LOW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.91% yearly.
EPS 1Y (TTM)-12.9%
EPS 3Y13.94%
EPS 5Y20.69%
EPS Q2Q%-5.56%
Revenue 1Y (TTM)-7.2%
Revenue growth 3Y-1.21%
Revenue growth 5Y3.91%
Sales Q2Q%-1.47%

3.2 Future

The Earnings Per Share is expected to grow by 5.75% on average over the next years.
LOW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.93% yearly.
EPS Next Y-8.06%
EPS Next 2Y-1.6%
EPS Next 3Y2.05%
EPS Next 5Y5.75%
Revenue Next Year-3.35%
Revenue Next 2Y-1.02%
Revenue Next 3Y0.5%
Revenue Next 5Y1.93%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
LOW Yearly Revenue VS EstimatesLOW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20B 40B 60B 80B 100B
LOW Yearly EPS VS EstimatesLOW Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5 10 15 20

5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 21.38 indicates a rather expensive valuation of LOW.
LOW's Price/Earnings ratio is a bit cheaper when compared to the industry. LOW is cheaper than 68.38% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.27. LOW is valued slightly cheaper when compared to this.
LOW is valuated rather expensively with a Price/Forward Earnings ratio of 19.98.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LOW indicates a somewhat cheap valuation: LOW is cheaper than 62.39% of the companies listed in the same industry.
LOW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 96.48.
Industry RankSector Rank
PE 21.38
Fwd PE 19.98
LOW Price Earnings VS Forward Price EarningsLOW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 100 200 300 400

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as LOW.
LOW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LOW is cheaper than 71.79% of the companies in the same industry.
Industry RankSector Rank
P/FCF 18.24
EV/EBITDA 14.22
LOW Per share dataLOW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100

4.3 Compensation for Growth

The excellent profitability rating of LOW may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.03
EPS Next 2Y-1.6%
EPS Next 3Y2.05%

6

5. Dividend

5.1 Amount

LOW has a Yearly Dividend Yield of 1.79%.
LOW's Dividend Yield is a higher than the industry average which is at 4.06.
LOW's Dividend Yield is slightly below the S&P500 average, which is at 2.31.
Industry RankSector Rank
Dividend Yield 1.79%

5.2 History

The dividend of LOW is nicely growing with an annual growth rate of 19.28%!
LOW has paid a dividend for at least 10 years, which is a reliable track record.
LOW has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)19.28%
Div Incr Years34
Div Non Decr Years34
LOW Yearly Dividends per shareLOW Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4

5.3 Sustainability

37.27% of the earnings are spent on dividend by LOW. This is a low number and sustainable payout ratio.
The dividend of LOW is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP37.27%
EPS Next 2Y-1.6%
EPS Next 3Y2.05%
LOW Yearly Income VS Free CF VS DividendLOW Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B
LOW Dividend Payout.LOW Dividend Payout, showing the Payout Ratio.LOW Dividend Payout.PayoutRetained Earnings

LOWE'S COS INC

NYSE:LOW (2/13/2025, 7:50:56 PM)

After market: 252.66 0 (0%)

252.66

+2.4 (+0.96%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)11-19 2024-11-19/bmo
Earnings (Next)N/A N/A
Inst Owners77.13%
Inst Owner Change-12.58%
Ins Owners0.09%
Ins Owner Change-0.17%
Market Cap142.66B
Analysts74.76
Price Target288.9 (14.34%)
Short Float %1.26%
Short Ratio3.03
Dividend
Industry RankSector Rank
Dividend Yield 1.79%
Yearly Dividend4.31
Dividend Growth(5Y)19.28%
DP37.27%
Div Incr Years34
Div Non Decr Years34
Ex-Date01-22 2025-01-22 (1.15)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.88%
Min EPS beat(2)1.44%
Max EPS beat(2)2.32%
EPS beat(4)4
Avg EPS beat(4)2.82%
Min EPS beat(4)1.44%
Max EPS beat(4)4.51%
EPS beat(8)7
Avg EPS beat(8)2.44%
EPS beat(12)11
Avg EPS beat(12)2.98%
EPS beat(16)15
Avg EPS beat(16)5.34%
Revenue beat(2)1
Avg Revenue beat(2)-1.09%
Min Revenue beat(2)-2.31%
Max Revenue beat(2)0.12%
Revenue beat(4)2
Avg Revenue beat(4)-0.55%
Min Revenue beat(4)-2.31%
Max Revenue beat(4)0.14%
Revenue beat(8)3
Avg Revenue beat(8)-0.74%
Revenue beat(12)5
Avg Revenue beat(12)-0.75%
Revenue beat(16)9
Avg Revenue beat(16)0%
PT rev (1m)-0.34%
PT rev (3m)5.86%
EPS NQ rev (1m)0.4%
EPS NQ rev (3m)-7.87%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.48%
Valuation
Industry RankSector Rank
PE 21.38
Fwd PE 19.98
P/S 1.7
P/FCF 18.24
P/OCF 14.53
P/B N/A
P/tB N/A
EV/EBITDA 14.22
EPS(TTM)11.82
EY4.68%
EPS(NY)12.65
Fwd EY5%
FCF(TTM)13.85
FCFY5.48%
OCF(TTM)17.39
OCFY6.88%
SpS148.27
BVpS-23.77
TBVpS-23.77
PEG (NY)N/A
PEG (5Y)1.03
Profitability
Industry RankSector Rank
ROA 15.28%
ROE N/A
ROCE 40.5%
ROIC 29.8%
ROICexc 34.23%
ROICexgc 34.23%
OM 12.24%
PM (TTM) 8.17%
GM 33.21%
FCFM 9.34%
ROA(3y)17.32%
ROA(5y)15.04%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)32.86%
ROIC(5y)29.02%
ROICexc(3y)34.72%
ROICexc(5y)31.38%
ROICexgc(3y)35.48%
ROICexgc(5y)31.97%
ROCE(3y)44.94%
ROCE(5y)39.99%
ROICexcg growth 3Y-0.99%
ROICexcg growth 5Y12.19%
ROICexc growth 3Y-0.55%
ROICexc growth 5Y12.53%
OM growth 3Y3.04%
OM growth 5Y12.99%
PM growth 3Y11.21%
PM growth 5Y22.49%
GM growth 3Y0.39%
GM growth 5Y0.78%
F-Score5
Asset Turnover1.87
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 4.54
Debt/EBITDA 2.7
Cap/Depr 102.15%
Cap/Sales 2.39%
Interest Coverage 7.02
Cash Conversion 80.5%
Profit Quality 114.44%
Current Ratio 1.13
Quick Ratio 0.23
Altman-Z 3.71
F-Score5
WACC9.9%
ROIC/WACC3.01
Cap/Depr(3y)97.64%
Cap/Depr(5y)102.11%
Cap/Sales(3y)2.03%
Cap/Sales(5y)2.03%
Profit Quality(3y)94.58%
Profit Quality(5y)101.84%
High Growth Momentum
Growth
EPS 1Y (TTM)-12.9%
EPS 3Y13.94%
EPS 5Y20.69%
EPS Q2Q%-5.56%
EPS Next Y-8.06%
EPS Next 2Y-1.6%
EPS Next 3Y2.05%
EPS Next 5Y5.75%
Revenue 1Y (TTM)-7.2%
Revenue growth 3Y-1.21%
Revenue growth 5Y3.91%
Sales Q2Q%-1.47%
Revenue Next Year-3.35%
Revenue Next 2Y-1.02%
Revenue Next 3Y0.5%
Revenue Next 5Y1.93%
EBIT growth 1Y-11.48%
EBIT growth 3Y1.79%
EBIT growth 5Y17.4%
EBIT Next Year5.62%
EBIT Next 3Y4.57%
EBIT Next 5Y4.5%
FCF growth 1Y5.93%
FCF growth 3Y-12.62%
FCF growth 5Y4.24%
OCF growth 1Y8.27%
OCF growth 3Y-9.68%
OCF growth 5Y5.62%