LOWE'S COS INC (LOW) Stock Fundamental Analysis

NYSE:LOW • US5486611073

287.39 USD
+1.86 (+0.65%)
At close: Feb 13, 2026
287.39 USD
0 (0%)
After Hours: 2/13/2026, 8:22:03 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to LOW. LOW was compared to 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 decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year LOW was profitable.
  • LOW had a positive operating cash flow in the past year.
  • LOW had positive earnings in each of the past 5 years.
  • In the past 5 years LOW always reported a positive cash flow from operatings.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

1.2 Ratios

  • With an excellent Return On Assets value of 12.65%, LOW belongs to the best of the industry, outperforming 88.33% of the companies in the same industry.
  • LOW has a Return On Invested Capital of 22.95%. This is amongst the best in the industry. LOW outperforms 89.17% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for LOW is significantly above the industry average of 12.31%.
  • The last Return On Invested Capital (22.95%) for LOW is well below the 3 year average (32.20%), which needs to be investigated, but indicates that LOW had better years and this may not be a problem.
Industry RankSector Rank
ROA 12.65%
ROE N/A
ROIC 22.95%
ROA(3y)16.41%
ROA(5y)16.1%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)32.2%
ROIC(5y)32.68%
LOW Yearly ROA, ROE, ROICLOW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100 -100 200 300 400

1.3 Margins

  • With an excellent Profit Margin value of 8.02%, LOW belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
  • LOW's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 12.19%, LOW belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
  • In the last couple of years the Operating Margin of LOW has grown nicely.
  • LOW has a Gross Margin of 33.59%. This is comparable to the rest of the industry: LOW outperforms 41.67% of its industry peers.
  • In the last couple of years the Gross Margin of LOW has remained more or less at the same level.
Industry RankSector Rank
OM 12.19%
PM (TTM) 8.02%
GM 33.59%
OM growth 3Y-1.15%
OM growth 5Y6.8%
PM growth 3Y-1.72%
PM growth 5Y6.99%
GM growth 3Y0.01%
GM growth 5Y0.94%
LOW Yearly Profit, Operating, Gross MarginsLOW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • LOW has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for LOW has been reduced compared to 5 years ago.
  • LOW has a better debt/assets ratio than last year.
LOW Yearly Shares OutstandingLOW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
LOW Yearly Total Debt VS Total AssetsLOW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.2 Solvency

  • LOW has an Altman-Z score of 3.44. This indicates that LOW is financially healthy and has little risk of bankruptcy at the moment.
  • LOW's Altman-Z score of 3.44 is fine compared to the rest of the industry. LOW outperforms 77.50% of its industry peers.
  • LOW has a debt to FCF ratio of 5.66. This is a neutral value as LOW would need 5.66 years to pay back of all of its debts.
  • LOW has a better Debt to FCF ratio (5.66) than 64.17% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5.66
Altman-Z 3.44
ROIC/WACC2.51
WACC9.14%
LOW Yearly LT Debt VS Equity VS FCFLOW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B -10B 20B 30B

2.3 Liquidity

  • LOW has a Current Ratio of 1.04. This is a normal value and indicates that LOW is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 1.04, LOW is doing worse than 72.50% of the companies in the same industry.
  • LOW has a Quick Ratio of 1.04. This is a bad value and indicates that LOW is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Quick ratio of LOW (0.16) is worse than 91.67% of its industry peers.
Industry RankSector Rank
Current Ratio 1.04
Quick Ratio 0.16
LOW Yearly Current Assets VS Current LiabilitesLOW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • LOW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.55%.
  • Measured over the past years, LOW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.93% on average per year.
  • Looking at the last year, LOW shows a small growth in Revenue. The Revenue has grown by 0.64% in the last year.
  • Measured over the past years, LOW shows a small growth in Revenue. The Revenue has been growing by 3.01% on average per year.
EPS 1Y (TTM)3.55%
EPS 3Y0.03%
EPS 5Y15.93%
EPS Q2Q%5.88%
Revenue 1Y (TTM)0.64%
Revenue growth 3Y-4.56%
Revenue growth 5Y3.01%
Sales Q2Q%3.19%

3.2 Future

  • Based on estimates for the next years, LOW will show a small growth in Earnings Per Share. The EPS will grow by 7.26% on average per year.
  • The Revenue is expected to grow by 4.00% on average over the next years.
EPS Next Y3.37%
EPS Next 2Y4.49%
EPS Next 3Y5.79%
EPS Next 5Y7.26%
Revenue Next Year3.17%
Revenue Next 2Y5.65%
Revenue Next 3Y4.94%
Revenue Next 5Y4%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
LOW Yearly Revenue VS EstimatesLOW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B 80B 100B
LOW Yearly EPS VS EstimatesLOW Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15 20 25

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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 23.48, LOW is valued on the expensive side.
  • 70.00% of the companies in the same industry are more expensive than LOW, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 27.97. LOW is around the same levels.
  • The Price/Forward Earnings ratio is 21.97, which indicates a rather expensive current valuation of LOW.
  • LOW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LOW is cheaper than 61.67% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.96, LOW is valued a bit cheaper.
Industry RankSector Rank
PE 23.48
Fwd PE 21.97
LOW Price Earnings VS Forward Price EarningsLOW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as LOW.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of LOW indicates a somewhat cheap valuation: LOW is cheaper than 65.83% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 22.87
EV/EBITDA 16.1
LOW Per share dataLOW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LOW does not grow enough to justify the current Price/Earnings ratio.
  • LOW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.97
PEG (5Y)1.47
EPS Next 2Y4.49%
EPS Next 3Y5.79%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • LOW has a Yearly Dividend Yield of 1.75%. Purely for dividend investing, there may be better candidates out there.
  • LOW's Dividend Yield is a higher than the industry average which is at 2.26.
  • Compared to an average S&P500 Dividend Yield of 1.79, LOW has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.75%

5.2 History

  • The dividend of LOW is nicely growing with an annual growth rate of 16.94%!
  • LOW has been paying a dividend for at least 10 years, so it has a reliable track record.
  • LOW has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)16.94%
Div Incr Years34
Div Non Decr Years34
LOW Yearly Dividends per shareLOW Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

5.3 Sustainability

  • 38.65% 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.
DP38.65%
EPS Next 2Y4.49%
EPS Next 3Y5.79%
LOW Yearly Income VS Free CF VS DividendLOW Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B
LOW Dividend Payout.LOW Dividend Payout, showing the Payout Ratio.LOW Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

LOWE'S COS INC

NYSE:LOW (2/13/2026, 8:22:03 PM)

After market: 287.39 0 (0%)

287.39

+1.86 (+0.65%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)11-19
Earnings (Next)05-19
Inst Owners80.03%
Inst Owner Change-2.16%
Ins Owners0.09%
Ins Owner Change-3.19%
Market Cap161.21B
Revenue(TTM)84.26B
Net Income(TTM)6.76B
Analysts77
Price Target286.18 (-0.42%)
Short Float %1.9%
Short Ratio3.49
Dividend
Industry RankSector Rank
Dividend Yield 1.75%
Yearly Dividend4.53
Dividend Growth(5Y)16.94%
DP38.65%
Div Incr Years34
Div Non Decr Years34
Ex-Date01-21
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.59%
Min EPS beat(2)1.03%
Max EPS beat(2)2.14%
EPS beat(4)4
Avg EPS beat(4)1.86%
Min EPS beat(4)0.49%
Max EPS beat(4)3.78%
EPS beat(8)8
Avg EPS beat(8)2.34%
EPS beat(12)11
Avg EPS beat(12)2.25%
EPS beat(16)15
Avg EPS beat(16)2.7%
Revenue beat(2)0
Avg Revenue beat(2)-1.01%
Min Revenue beat(2)-1.01%
Max Revenue beat(2)-1.01%
Revenue beat(4)1
Avg Revenue beat(4)-0.67%
Min Revenue beat(4)-1.02%
Max Revenue beat(4)0.35%
Revenue beat(8)3
Avg Revenue beat(8)-0.61%
Revenue beat(12)4
Avg Revenue beat(12)-0.72%
Revenue beat(16)6
Avg Revenue beat(16)-0.73%
PT rev (1m)2.91%
PT rev (3m)-0.59%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-6.2%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.12%
Valuation
Industry RankSector Rank
PE 23.48
Fwd PE 21.97
P/S 1.91
P/FCF 22.87
P/OCF 17.51
P/B N/A
P/tB N/A
EV/EBITDA 16.1
EPS(TTM)12.24
EY4.26%
EPS(NY)13.08
Fwd EY4.55%
FCF(TTM)12.57
FCFY4.37%
OCF(TTM)16.42
OCFY5.71%
SpS150.2
BVpS-18.51
TBVpS-36.29
PEG (NY)6.97
PEG (5Y)1.47
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 12.65%
ROE N/A
ROCE 30.22%
ROIC 22.95%
ROICexc 23.67%
ROICexgc 33.95%
OM 12.19%
PM (TTM) 8.02%
GM 33.59%
FCFM 8.37%
ROA(3y)16.41%
ROA(5y)16.1%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)32.2%
ROIC(5y)32.68%
ROICexc(3y)34.56%
ROICexc(5y)35.64%
ROICexgc(3y)34.87%
ROICexgc(5y)36.2%
ROCE(3y)42.67%
ROCE(5y)43.19%
ROICexgc growth 3Y-4.55%
ROICexgc growth 5Y12.84%
ROICexc growth 3Y-3.41%
ROICexc growth 5Y13.11%
OM growth 3Y-1.15%
OM growth 5Y6.8%
PM growth 3Y-1.72%
PM growth 5Y6.99%
GM growth 3Y0.01%
GM growth 5Y0.94%
F-Score6
Asset Turnover1.58
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5.66
Debt/EBITDA 3.04
Cap/Depr 104.35%
Cap/Sales 2.56%
Interest Coverage 250
Cash Conversion 74.61%
Profit Quality 104.28%
Current Ratio 1.04
Quick Ratio 0.16
Altman-Z 3.44
F-Score6
WACC9.14%
ROIC/WACC2.51
Cap/Depr(3y)97.39%
Cap/Depr(5y)100.6%
Cap/Sales(3y)2.15%
Cap/Sales(5y)2.08%
Profit Quality(3y)98.81%
Profit Quality(5y)110.8%
High Growth Momentum
Growth
EPS 1Y (TTM)3.55%
EPS 3Y0.03%
EPS 5Y15.93%
EPS Q2Q%5.88%
EPS Next Y3.37%
EPS Next 2Y4.49%
EPS Next 3Y5.79%
EPS Next 5Y7.26%
Revenue 1Y (TTM)0.64%
Revenue growth 3Y-4.56%
Revenue growth 5Y3.01%
Sales Q2Q%3.19%
Revenue Next Year3.17%
Revenue Next 2Y5.65%
Revenue Next 3Y4.94%
Revenue Next 5Y4%
EBIT growth 1Y0.28%
EBIT growth 3Y-5.66%
EBIT growth 5Y10.02%
EBIT Next Year20.15%
EBIT Next 3Y10.52%
EBIT Next 5Y7.61%
FCF growth 1Y30.56%
FCF growth 3Y-2.32%
FCF growth 5Y22.21%
OCF growth 1Y23.05%
OCF growth 3Y-1.64%
OCF growth 5Y17.44%

LOWE'S COS INC / LOW FAQ

What is the fundamental rating for LOW stock?

ChartMill assigns a fundamental rating of 6 / 10 to LOW.


What is the valuation status of LOWE'S COS INC (LOW) stock?

ChartMill assigns a valuation rating of 4 / 10 to LOWE'S COS INC (LOW). This can be considered as Fairly Valued.


Can you provide the profitability details for LOWE'S COS INC?

LOWE'S COS INC (LOW) has a profitability rating of 8 / 10.


Can you provide the expected EPS growth for LOW stock?

The Earnings per Share (EPS) of LOWE'S COS INC (LOW) is expected to grow by 3.37% in the next year.


How sustainable is the dividend of LOWE'S COS INC (LOW) stock?

The dividend rating of LOWE'S COS INC (LOW) is 6 / 10 and the dividend payout ratio is 38.65%.