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

NYSE:LOW • US5486611073

Current stock price

243.48 USD
-0.97 (-0.4%)
Last:

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.
  • Each year in the past 5 years LOW has been profitable.
  • 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

  • LOW has a Return On Assets of 12.25%. This is amongst the best in the industry. LOW outperforms 89.43% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 22.64%, LOW belongs to the top of the industry, outperforming 91.06% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for LOW is significantly above the industry average of 13.24%.
  • The 3 year average ROIC (29.23%) for LOW is well above the current ROIC(22.64%). The reason for the recent decline needs to be investigated.
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 Profit Margin of 7.69%. This is amongst the best in the industry. LOW outperforms 86.99% of its industry peers.
  • In the last couple of years the Profit Margin of LOW has grown nicely.
  • The Operating Margin of LOW (11.96%) is better than 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 in line with its industry peers.
  • LOW's Gross Margin has been stable in the last couple of years.
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

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5

2. LOW Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LOW is creating value.
  • Compared to 1 year ago, LOW has about the same amount of 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.
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

  • An Altman-Z score of 3.26 indicates that LOW is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of LOW (3.26) is better than 73.17% 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 3.26
ROIC/WACC2.89
WACC7.84%
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.
  • The Current ratio of LOW (1.08) is worse than 69.92% of its industry peers.
  • A Quick Ratio of 0.19 indicates that LOW may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.19, LOW is not doing good in the industry: 91.06% of the companies in the same industry are doing better.
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

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

3

3. LOW Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 2.59% over the past year.
  • LOW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.84% yearly.
  • LOW shows a small growth in Revenue. In the last year, the Revenue has grown by 3.12%.
  • 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.
  • The Revenue is expected to grow by 4.25% on average over the next years.
EPS Next Y3.61%
EPS Next 2Y5.92%
EPS Next 3Y7.23%
EPS Next 5Y7.5%
Revenue Next Year8.36%
Revenue Next 2Y5.93%
Revenue Next 3Y5.35%
Revenue Next 5Y4.25%

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 stable.
  • 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

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4

4. LOW Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 19.81 indicates a rather expensive valuation of LOW.
  • Based on the Price/Earnings ratio, LOW is valued a bit cheaper than 69.92% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.42, LOW is valued a bit cheaper.
  • Based on the Price/Forward Earnings ratio of 19.12, the valuation of LOW can be described as rather expensive.
  • Based on the Price/Forward Earnings ratio, LOW is valued a bit cheaper than the industry average as 63.41% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of LOW to the average of the S&P500 Index (22.29), we can say LOW is valued inline with the index average.
Industry RankSector Rank
PE 19.81
Fwd PE 19.12
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.
  • LOW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LOW is cheaper than 65.85% of the companies in the same industry.
Industry RankSector Rank
P/FCF 17.82
EV/EBITDA 13.99
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.
  • LOW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.49
PEG (5Y)2.9
EPS Next 2Y5.92%
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

  • LOW has a Yearly Dividend Yield of 1.95%.
  • LOW's Dividend Yield is a higher than the industry average which is at 3.78.
  • LOW's Dividend Yield is comparable with the S&P500 average which is at 1.81.
Industry RankSector Rank
Dividend Yield 1.95%

5.2 History

  • The dividend of LOW is nicely growing with an annual growth rate of 15.57%!
  • 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.
  • LOW's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.73%
EPS Next 2Y5.92%
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

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LOW Fundamentals: All Metrics, Ratios and Statistics

LOWE'S COS INC

NYSE:LOW (4/27/2026, 12:23:10 PM)

243.48

-0.97 (-0.4%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)02-25
Earnings (Next)05-19
Inst Owners80.54%
Inst Owner Change0.17%
Ins Owners0.1%
Ins Owner Change3.32%
Market Cap136.36B
Revenue(TTM)86.29B
Net Income(TTM)6.63B
Analysts77.07
Price Target290.11 (19.15%)
Short Float %2.19%
Short Ratio4.45
Dividend
Industry RankSector Rank
Dividend Yield 1.95%
Yearly Dividend4.7
Dividend Growth(5Y)15.57%
DP39.73%
Div Incr Years34
Div Non Decr Years34
Ex-Date04-22
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)0.42%
PT rev (3m)4.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.58%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)-2.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.76%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.16%
Valuation
Industry RankSector Rank
PE 19.81
Fwd PE 19.12
P/S 1.58
P/FCF 17.82
P/OCF 13.82
P/B N/A
P/tB N/A
EV/EBITDA 13.99
EPS(TTM)12.29
EY5.05%
EPS(NY)12.73
Fwd EY5.23%
FCF(TTM)13.66
FCFY5.61%
OCF(TTM)17.61
OCFY7.23%
SpS154.07
BVpS-17.71
TBVpS-35.3
PEG (NY)5.49
PEG (5Y)2.9
Graham Number0 (-100%)
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 3.26
F-Score6
WACC7.84%
ROIC/WACC2.89
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 Y3.61%
EPS Next 2Y5.92%
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 Year8.36%
Revenue Next 2Y5.93%
Revenue Next 3Y5.35%
Revenue Next 5Y4.25%
EBIT growth 1Y-1.36%
EBIT growth 3Y-0.02%
EBIT growth 5Y-1.38%
EBIT Next Year25.91%
EBIT Next 3Y11.78%
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%.