LOWE'S COS INC (LOW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LOW - US5486611073 - Common Stock
277.55 USD
+0.54 (+0.19%)
277.02 USD
-0.53 (-0.19%)
Taking everything into account, LOW scores 6 out of 10 in our fundamental rating. LOW was compared to 121 industry peers in the Specialty Retail industry. While LOW has a great profitability rating, there are some minor concerns on its financial health. LOW is not valued too expensively and it also shows a decent growth rate.
1. Profitability
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.
1.2 Ratios
- With an excellent Return On Assets value of 12.65%, LOW belongs to the best of the industry, outperforming 88.52% of the companies in the same industry.
- The Return On Invested Capital of LOW (22.95%) is better than 89.34% of its industry peers.
- LOW had an Average Return On Invested Capital over the past 3 years of 32.20%. This is significantly above the industry average of 12.37%.
- The 3 year average ROIC (32.20%) for LOW is well above the current ROIC(22.95%). The reason for the recent decline needs to be investigated.
| 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.
- LOW's Profit Margin has improved in the last couple of years.
- LOW's Operating Margin of 12.19% is amongst the best of the industry. LOW outperforms 86.89% of its industry peers.
- LOW's Operating Margin has improved in the last couple of years.
- LOW's Gross Margin of 33.59% is in line compared to the rest of the industry. LOW outperforms 40.98% 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 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LOW is creating value.
- Compared to 1 year ago, LOW has less shares outstanding
- LOW has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for LOW has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.40 indicates that LOW is not in any danger for bankruptcy at the moment.
- The Altman-Z score of LOW (3.40) is better than 77.87% of its industry peers.
- The Debt to FCF ratio of LOW is 5.66, which is a neutral value as it means it would take LOW, 5.66 years of fcf income to pay off all of its debts.
- LOW's Debt to FCF ratio of 5.66 is fine compared to the rest of the industry. LOW outperforms 64.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.66 | ||
| Altman-Z | 3.4 |
ROIC/WACC2.46
WACC9.34%
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.
- The Current ratio of LOW (1.04) is worse than 72.95% of its industry peers.
- A Quick Ratio of 0.16 indicates that LOW may have some problems paying its short term obligations.
- The Quick ratio of LOW (0.16) is worse than 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.
- LOW shows a small growth in Revenue. In the last year, the Revenue has grown by 0.64%.
- LOW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.01% yearly.
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 2Y5.66%
Revenue Next 3Y4.95%
Revenue Next 5Y4%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 22.68, which indicates a rather expensive current valuation of LOW.
- 71.31% of the companies in the same industry are more expensive than LOW, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, LOW is valued at the same level.
- Based on the Price/Forward Earnings ratio of 21.22, the valuation of LOW can be described as rather expensive.
- LOW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LOW is 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 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.68 | ||
| Fwd PE | 21.22 |
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 | 22.08 | ||
| EV/EBITDA | 15.73 |
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)6.72
PEG (5Y)1.42
EPS Next 2Y4.48%
EPS Next 3Y5.78%
5. Dividend
5.1 Amount
- LOW has a Yearly Dividend Yield of 1.73%. 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 2.08.
- Compared to an average S&P500 Dividend Yield of 1.85, LOW has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
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
- 38.65% of the earnings are spent on dividend by LOW. This is a low number and sustainable payout ratio.
- LOW's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP38.65%
EPS Next 2Y4.48%
EPS Next 3Y5.78%
277.55
+0.54 (+0.19%)
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 Change0.06%
Ins Owners0.09%
Ins Owner Change-3.19%
Market Cap155.69B
Revenue(TTM)84.26B
Net Income(TTM)6.76B
Analysts77
Price Target278.6 (0.38%)
Short Float %2.02%
Short Ratio3.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
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)0.33%
PT rev (3m)-3.17%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-6.18%
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 | 22.68 | ||
| Fwd PE | 21.22 | ||
| P/S | 1.85 | ||
| P/FCF | 22.08 | ||
| P/OCF | 16.91 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.73 |
EPS(TTM)12.24
EY4.41%
EPS(NY)13.08
Fwd EY4.71%
FCF(TTM)12.57
FCFY4.53%
OCF(TTM)16.42
OCFY5.91%
SpS150.2
BVpS-18.51
TBVpS-36.29
PEG (NY)6.72
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
WACC9.34%
ROIC/WACC2.46
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 2Y5.66%
Revenue Next 3Y4.95%
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%.