LOWE'S COS INC (LOW) Fundamental Analysis & Valuation

NYSE:LOW • US5486611073

Current stock price

231.03 USD
-4.95 (-2.1%)
At close:
231.03 USD
0 (0%)
After Hours:

This LOW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. LOW Profitability Analysis

1.1 Basic Checks

  • In the past year LOW was profitable.
  • In the past year LOW had a positive cash flow from operations.
  • 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.
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 2026 2B 4B 6B 8B 10B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 12.25%, LOW belongs to the top of the industry, outperforming 88.62% of the companies in the same industry.
  • LOW's Return On Invested Capital of 22.64% is amongst the best of the industry. LOW outperforms 90.24% 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 13.27%.
  • The last Return On Invested Capital (22.64%) for LOW is well below the 3 year average (29.23%), which needs to be investigated, but indicates that LOW had better years and this may not be a problem.
Industry RankSector Rank
ROA 12.25%
ROE N/A
ROIC 22.64%
ROA(3y)15.6%
ROA(5y)16.06%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)29.23%
ROIC(5y)31.25%
LOW Yearly ROA, ROE, ROICLOW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 100 -100 200 300 400

1.3 Margins

  • LOW has a better Profit Margin (7.69%) than 86.18% of its industry peers.
  • LOW's Profit Margin has improved in the last couple of years.
  • LOW's Operating Margin of 11.96% is amongst the best of the industry. LOW outperforms 87.80% of its industry peers.
  • LOW's Operating Margin has been stable in the last couple of years.
  • LOW has a Gross Margin (33.47%) which is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of LOW has remained more or less at the same level.
Industry RankSector Rank
OM 11.96%
PM (TTM) 7.69%
GM 33.47%
OM growth 3Y3.98%
OM growth 5Y-0.63%
PM growth 3Y5.17%
PM growth 5Y3.47%
GM growth 3Y0.24%
GM growth 5Y0.28%
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 2026 10 20 30

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. LOW Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LOW is creating value.
  • The number of shares outstanding for LOW remains at a similar level compared to 1 year ago.
  • Compared to 5 years ago, LOW has less shares outstanding
  • The debt/assets ratio for LOW has been reduced compared to a year ago.
LOW Yearly Shares OutstandingLOW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 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 2026 10B 20B 30B 40B 50B

2.2 Solvency

  • LOW has an Altman-Z score of 3.22. This indicates that LOW is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of LOW (3.22) is better than 78.86% of its industry peers.
  • The Debt to FCF ratio of LOW is 5.22, which is a neutral value as it means it would take LOW, 5.22 years of fcf income to pay off all of its debts.
  • LOW has a better Debt to FCF ratio (5.22) than 64.23% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5.22
Altman-Z 3.22
ROIC/WACC2.9
WACC7.81%
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 2026 0 10B -10B 20B 30B

2.3 Liquidity

  • LOW has a Current Ratio of 1.08. 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 1.08 is on the low side compared to the rest of the industry. LOW is outperformed by 66.67% of its industry peers.
  • LOW has a Quick Ratio of 1.08. 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 has a Quick ratio of 0.19. This is amonst the worse of the industry: LOW underperforms 86.18% of its industry peers.
Industry RankSector Rank
Current Ratio 1.08
Quick Ratio 0.19
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 2026 5B 10B 15B 20B

More info and screens

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

3

3. LOW Growth Analysis

3.1 Past

  • LOW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.59%.
  • The Earnings Per Share has been growing slightly by 6.84% on average over the past years.
  • The Revenue has been growing slightly by 3.12% in the past year.
  • LOW shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.75% yearly.
EPS 1Y (TTM)2.59%
EPS 3Y-3.63%
EPS 5Y6.84%
EPS Q2Q%2.59%
Revenue 1Y (TTM)3.12%
Revenue growth 3Y-3.85%
Revenue growth 5Y-0.75%
Sales Q2Q%10.95%

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 7.50% on average per year.
  • Based on estimates for the next years, LOW will show a small growth in Revenue. The Revenue will grow by 4.25% on average per year.
EPS Next Y3.9%
EPS Next 2Y6.05%
EPS Next 3Y7.23%
EPS Next 5Y7.5%
Revenue Next Year8.35%
Revenue Next 2Y5.92%
Revenue Next 3Y5.33%
Revenue Next 5Y4.25%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same 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.
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

More info and screens

Find the best growth stocksShow best growing peers

4

4. LOW Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 18.80, the valuation of LOW can be described as rather expensive.
  • 70.73% of the companies in the same industry are more expensive than LOW, based on the Price/Earnings ratio.
  • LOW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.51.
  • A Price/Forward Earnings ratio of 18.09 indicates a rather expensive valuation of LOW.
  • 64.23% of the companies in the same industry are more expensive than LOW, based on the Price/Forward Earnings ratio.
  • LOW is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.76, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 18.8
Fwd PE 18.09
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

  • LOW's Enterprise Value to EBITDA ratio is in line with the industry average.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of LOW indicates a somewhat cheap valuation: LOW is cheaper than 69.92% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 16.94
EV/EBITDA 13.63
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 an expensive valuation of the company.
  • The excellent profitability rating of LOW may justify a higher PE ratio.
PEG (NY)4.81
PEG (5Y)2.75
EPS Next 2Y6.05%
EPS Next 3Y7.23%

More info and screens

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

6

5. LOW Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.03%, LOW has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 2.75, LOW pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, LOW has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.03%

5.2 History

  • On average, the dividend of LOW grows each year by 15.57%, which is quite nice.
  • 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)15.57%
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

  • LOW pays out 39.73% 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.
DP39.73%
EPS Next 2Y6.05%
EPS Next 3Y7.23%
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 2026 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

LOW Fundamentals: All Metrics, Ratios and Statistics

LOWE'S COS INC

NYSE:LOW (4/2/2026, 4:15:09 PM)

After market: 231.03 0 (0%)

231.03

-4.95 (-2.1%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)02-25
Earnings (Next)05-19
Inst Owners80.45%
Inst Owner Change0.78%
Ins Owners0.09%
Ins Owner Change-0.99%
Market Cap129.61B
Revenue(TTM)86.29B
Net Income(TTM)6.63B
Analysts77.5
Price Target291.06 (25.98%)
Short Float %2.1%
Short Ratio4.12
Dividend
Industry RankSector Rank
Dividend Yield 2.03%
Yearly Dividend4.7
Dividend Growth(5Y)15.57%
DP39.73%
Div Incr Years34
Div Non Decr Years34
Ex-Date01-21
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.49%
Min EPS beat(2)0.84%
Max EPS beat(2)2.14%
EPS beat(4)4
Avg EPS beat(4)1.13%
Min EPS beat(4)0.49%
Max EPS beat(4)2.14%
EPS beat(8)8
Avg EPS beat(8)1.88%
EPS beat(12)11
Avg EPS beat(12)2.14%
EPS beat(16)15
Avg EPS beat(16)2.55%
Revenue beat(2)1
Avg Revenue beat(2)-0.4%
Min Revenue beat(2)-1.01%
Max Revenue beat(2)0.21%
Revenue beat(4)1
Avg Revenue beat(4)-0.71%
Min Revenue beat(4)-1.02%
Max Revenue beat(4)0.21%
Revenue beat(8)4
Avg Revenue beat(8)-0.56%
Revenue beat(12)5
Avg Revenue beat(12)-0.53%
Revenue beat(16)6
Avg Revenue beat(16)-0.79%
PT rev (1m)0.75%
PT rev (3m)4.67%
EPS NQ rev (1m)-3.84%
EPS NQ rev (3m)-3.65%
EPS NY rev (1m)-2.38%
EPS NY rev (3m)-2.36%
Revenue NQ rev (1m)-1.14%
Revenue NQ rev (3m)-0.76%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.08%
Valuation
Industry RankSector Rank
PE 18.8
Fwd PE 18.09
P/S 1.5
P/FCF 16.94
P/OCF 13.14
P/B N/A
P/tB N/A
EV/EBITDA 13.63
EPS(TTM)12.29
EY5.32%
EPS(NY)12.77
Fwd EY5.53%
FCF(TTM)13.64
FCFY5.9%
OCF(TTM)17.58
OCFY7.61%
SpS153.81
BVpS-17.68
TBVpS-35.24
PEG (NY)4.81
PEG (5Y)2.75
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 12.25%
ROE N/A
ROCE 29.77%
ROIC 22.64%
ROICexc 23.55%
ROICexgc 33.44%
OM 11.96%
PM (TTM) 7.69%
GM 33.47%
FCFM 8.87%
ROA(3y)15.6%
ROA(5y)16.06%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)29.23%
ROIC(5y)31.25%
ROICexc(3y)31.1%
ROICexc(5y)33.21%
ROICexgc(3y)34.34%
ROICexgc(5y)35.62%
ROCE(3y)38.43%
ROCE(5y)41.27%
ROICexgc growth 3Y-1.64%
ROICexgc growth 5Y-1.78%
ROICexc growth 3Y-11.69%
ROICexc growth 5Y-8.18%
OM growth 3Y3.98%
OM growth 5Y-0.63%
PM growth 3Y5.17%
PM growth 5Y3.47%
GM growth 3Y0.24%
GM growth 5Y0.28%
F-Score6
Asset Turnover1.59
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5.22
Debt/EBITDA 2.99
Cap/Depr 100.87%
Cap/Sales 2.56%
Interest Coverage 250
Cash Conversion 78.8%
Profit Quality 115.31%
Current Ratio 1.08
Quick Ratio 0.19
Altman-Z 3.22
F-Score6
WACC7.81%
ROIC/WACC2.9
Cap/Depr(3y)100.24%
Cap/Depr(5y)98.3%
Cap/Sales(3y)2.38%
Cap/Sales(5y)2.19%
Profit Quality(3y)102.12%
Profit Quality(5y)101.99%
High Growth Momentum
Growth
EPS 1Y (TTM)2.59%
EPS 3Y-3.63%
EPS 5Y6.84%
EPS Q2Q%2.59%
EPS Next Y3.9%
EPS Next 2Y6.05%
EPS Next 3Y7.23%
EPS Next 5Y7.5%
Revenue 1Y (TTM)3.12%
Revenue growth 3Y-3.85%
Revenue growth 5Y-0.75%
Sales Q2Q%10.95%
Revenue Next Year8.35%
Revenue Next 2Y5.92%
Revenue Next 3Y5.33%
Revenue Next 5Y4.25%
EBIT growth 1Y-1.36%
EBIT growth 3Y-0.02%
EBIT growth 5Y-1.38%
EBIT Next Year25.93%
EBIT Next 3Y11.45%
EBIT Next 5Y8.09%
FCF growth 1Y-0.61%
FCF growth 3Y4.21%
FCF growth 5Y-3.74%
OCF growth 1Y2.48%
OCF growth 3Y4.72%
OCF growth 5Y-2.24%

LOWE'S COS INC / LOW Fundamental Analysis FAQ

What is the fundamental rating for LOW stock?

ChartMill assigns a fundamental rating of 5 / 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.


What is the profitability of LOW stock?

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


Can you provide the financial health for LOW stock?

The financial health rating of LOWE'S COS INC (LOW) is 5 / 10.


Can you provide the dividend sustainability for LOW stock?

The dividend rating of LOWE'S COS INC (LOW) is 6 / 10 and the dividend payout ratio is 39.73%.