LOWE'S COS INC (LOW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LOW - US5486611073 - Common Stock
277.01 USD
+2.06 (+0.75%)
276.89 USD
-0.12 (-0.04%)
Overall LOW gets a fundamental rating of 6 out of 10. We evaluated LOW against 122 industry peers in the Specialty Retail industry. LOW has an excellent profitability rating, but there are some minor concerns on its financial health. LOW has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- LOW had positive earnings in the past year.
- LOW had a positive operating cash flow in the past year.
- LOW had positive earnings in each of the past 5 years.
- Each year in the past 5 years LOW had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of LOW (12.65%) is better than 88.52% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 22.95%, LOW belongs to the top of the industry, outperforming 89.34% of the companies in the same industry.
- LOW had an Average Return On Invested Capital over the past 3 years of 32.20%. This is significantly above the industry average of 12.24%.
- 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 Rank | Sector 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%
1.3 Margins
- LOW has a better Profit Margin (8.02%) than 84.43% of its industry peers.
- In the last couple of years the Profit Margin of LOW has grown nicely.
- LOW has a Operating Margin of 12.19%. This is amongst the best in the industry. LOW outperforms 86.89% of its industry peers.
- LOW's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 33.59%, LOW perfoms like the industry average, outperforming 40.98% of the companies in the same industry.
- In the last couple of years the Gross Margin of LOW has remained more or less at the same level.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- LOW has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
- LOW has a better debt/assets ratio than last year.
2.2 Solvency
- LOW has an Altman-Z score of 3.40. This indicates that LOW is financially healthy and has little risk of bankruptcy at the moment.
- LOW has a better Altman-Z score (3.40) than 77.87% 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.
- The Debt to FCF ratio of LOW (5.66) is better than 64.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.66 | ||
| Altman-Z | 3.4 |
ROIC/WACC2.48
WACC9.24%
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.
- LOW's Current ratio of 1.04 is on the low side compared to the rest of the industry. LOW is outperformed by 72.95% of its industry peers.
- 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.
- LOW's Quick ratio of 0.16 is on the low side compared to the rest of the industry. LOW is outperformed by 91.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.16 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 3.55% over the past year.
- 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.
- The Revenue has been growing slightly by 0.64% in the past 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
- The Earnings Per Share is expected to grow by 7.26% 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 4.00% yearly.
EPS Next Y3.37%
EPS Next 2Y4.48%
EPS Next 3Y5.78%
EPS Next 5Y7.26%
Revenue Next Year3.17%
Revenue Next 2Y5.69%
Revenue Next 3Y4.91%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 22.63 indicates a rather expensive valuation of LOW.
- 71.31% 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 27.54. LOW is around the same levels.
- With a Price/Forward Earnings ratio of 21.18, LOW is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, LOW is valued a bit cheaper than 63.11% of the companies in the same industry.
- LOW is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.31, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.63 | ||
| Fwd PE | 21.18 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LOW is on the same level as its industry peers.
- LOW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LOW is cheaper than 71.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.04 | ||
| EV/EBITDA | 15.71 |
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.
- The excellent profitability rating of LOW may justify a higher PE ratio.
PEG (NY)6.71
PEG (5Y)1.42
EPS Next 2Y4.48%
EPS Next 3Y5.78%
5. Dividend
5.1 Amount
- LOW has a Yearly Dividend Yield of 1.87%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.13, LOW pays a bit more dividend than its industry peers.
- LOW's Dividend Yield is comparable with the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
5.2 History
- The dividend of LOW is nicely growing with an annual growth rate of 16.94%!
- 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)16.94%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
- LOW pays out 38.65% of its income as dividend. This is a 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 2Y4.48%
EPS Next 3Y5.78%
277.01
+2.06 (+0.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)11-19 2025-11-19/bmo
Earnings (Next)05-19 2026-05-19/bmo
Inst Owners80.03%
Inst Owner Change0.07%
Ins Owners0.09%
Ins Owner Change-2.29%
Market Cap155.39B
Revenue(TTM)84.26B
Net Income(TTM)6.76B
Analysts77
Price Target278.09 (0.39%)
Short Float %2.02%
Short Ratio3.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
Yearly Dividend4.53
Dividend Growth(5Y)16.94%
DP38.65%
Div Incr Years34
Div Non Decr Years34
Ex-Date01-21 2026-01-21 (1.2)
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)0.15%
PT rev (3m)-3.35%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-6.15%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.63 | ||
| Fwd PE | 21.18 | ||
| P/S | 1.84 | ||
| P/FCF | 22.04 | ||
| P/OCF | 16.88 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.71 |
EPS(TTM)12.24
EY4.42%
EPS(NY)13.08
Fwd EY4.72%
FCF(TTM)12.57
FCFY4.54%
OCF(TTM)16.42
OCFY5.93%
SpS150.2
BVpS-18.51
TBVpS-36.29
PEG (NY)6.71
PEG (5Y)1.42
Graham NumberN/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 3.4 |
F-Score6
WACC9.24%
ROIC/WACC2.48
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 2Y4.48%
EPS Next 3Y5.78%
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 2Y5.69%
Revenue Next 3Y4.91%
Revenue Next 5Y4%
EBIT growth 1Y0.28%
EBIT growth 3Y-5.66%
EBIT growth 5Y10.02%
EBIT Next Year20.09%
EBIT Next 3Y10.55%
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%.