LOWE'S COS INC (LOW)
US5486611073 - Common Stock
LOW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 is valued correctly, but it does not seem to be growing. Finally LOW also has an excellent dividend rating. With these ratings, LOW could be worth investigating further for dividend investing!.
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.
LOW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of LOW (15.28%) is better than 92.56% of its industry peers.
LOW has a better Return On Invested Capital (29.80%) than 95.87% 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 12.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.28% | ||
| ROE | N/A | ||
| ROIC | 29.8% |
ROA(3y)17.32%
ROA(5y)15.04%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)32.86%
ROIC(5y)29.02%
1.3 Margins
LOW has a better Profit Margin (8.17%) than 87.60% of its industry peers.
LOW's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.24%, LOW belongs to the top of the industry, outperforming 89.26% of the companies in the same industry.
In the last couple of years the Operating Margin of LOW has grown nicely.
With a Gross Margin value of 33.21%, LOW perfoms like the industry average, outperforming 41.32% of the companies in the same industry.
LOW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.24% | ||
| PM (TTM) | 8.17% | ||
| GM | 33.21% |
OM growth 3Y3.04%
OM growth 5Y12.99%
PM growth 3Y11.21%
PM growth 5Y22.49%
GM growth 3Y0.39%
GM growth 5Y0.78%
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.
LOW has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.68 indicates that LOW is not in any danger for bankruptcy at the moment.
LOW has a better Altman-Z score (3.68) than 78.51% of its industry peers.
LOW has a debt to FCF ratio of 4.54. This is a neutral value as LOW would need 4.54 years to pay back of all of its debts.
The Debt to FCF ratio of LOW (4.54) is better than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.54 | ||
| Altman-Z | 3.68 |
ROIC/WACC3.09
WACC9.65%
2.3 Liquidity
A Current Ratio of 1.13 indicates that LOW should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.13, LOW is doing worse than 67.77% of the companies in the same industry.
A Quick Ratio of 0.23 indicates that LOW may have some problems paying its short term obligations.
LOW's Quick ratio of 0.23 is on the low side compared to the rest of the industry. LOW is outperformed by 84.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
LOW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.90%.
Measured over the past years, LOW shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.69% on average per year.
Looking at the last year, LOW shows a decrease in Revenue. The Revenue has decreased by -7.20% in the last year.
The Revenue has been growing slightly by 3.91% on average over the past years.
EPS 1Y (TTM)-12.9%
EPS 3Y13.94%
EPS 5Y20.69%
EPS Q2Q%-5.56%
Revenue 1Y (TTM)-7.2%
Revenue growth 3Y-1.21%
Revenue growth 5Y3.91%
Sales Q2Q%-1.47%
3.2 Future
The Earnings Per Share is expected to grow by 6.08% on average over the next years.
Based on estimates for the next years, LOW will show a small growth in Revenue. The Revenue will grow by 2.04% on average per year.
EPS Next Y-8.07%
EPS Next 2Y-1.31%
EPS Next 3Y2.32%
EPS Next 5Y6.08%
Revenue Next Year-3.29%
Revenue Next 2Y-0.96%
Revenue Next 3Y0.5%
Revenue Next 5Y2.04%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.96 indicates a rather expensive valuation of LOW.
LOW's Price/Earnings ratio is a bit cheaper when compared to the industry. LOW is cheaper than 65.29% of the companies in the same industry.
LOW is valuated rather cheaply when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.47, LOW is valued on the expensive side.
LOW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LOW is cheaper than 64.46% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.83. LOW is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.96 | ||
| Fwd PE | 19.47 |
4.2 Price Multiples
LOW's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, LOW is valued a bit cheaper than the industry average as 76.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.88 | ||
| EV/EBITDA | 13.96 |
4.3 Compensation for Growth
The excellent profitability rating of LOW may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.01
EPS Next 2Y-1.31%
EPS Next 3Y2.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.88%, LOW has a reasonable but not impressive dividend return.
LOW's Dividend Yield is rather good when compared to the industry average which is at 3.37. LOW pays more dividend than 80.99% of the companies in the same industry.
LOW's Dividend Yield is comparable with the S&P500 average which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
5.2 History
On average, the dividend of LOW grows each year by 19.28%, which is quite nice.
LOW has paid a dividend for at least 10 years, which is a reliable track record.
LOW has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)19.28%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
37.27% 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.
DP37.27%
EPS Next 2Y-1.31%
EPS Next 3Y2.32%
LOWE'S COS INC
NYSE:LOW (12/20/2024, 8:22:45 PM)
After market: 247.72 0 (0%)247.72
+3.2 (+1.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners77.13%
Inst Owner Change0.74%
Ins Owners0.09%
Ins Owner Change-0.22%
Market Cap139.88B
Analysts74.76
Price Target287.71 (16.14%)
Short Float %1.12%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
Dividend Growth(5Y)19.28%
DP37.27%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.88%
Min EPS beat(2)1.44%
Max EPS beat(2)2.32%
EPS beat(4)4
Avg EPS beat(4)2.82%
Min EPS beat(4)1.44%
Max EPS beat(4)4.51%
EPS beat(8)7
Avg EPS beat(8)2.44%
EPS beat(12)11
Avg EPS beat(12)2.98%
EPS beat(16)15
Avg EPS beat(16)5.34%
Revenue beat(2)1
Avg Revenue beat(2)-1.09%
Min Revenue beat(2)-2.31%
Max Revenue beat(2)0.12%
Revenue beat(4)2
Avg Revenue beat(4)-0.55%
Min Revenue beat(4)-2.31%
Max Revenue beat(4)0.14%
Revenue beat(8)3
Avg Revenue beat(8)-0.74%
Revenue beat(12)5
Avg Revenue beat(12)-0.75%
Revenue beat(16)9
Avg Revenue beat(16)0%
PT rev (1m)5.42%
PT rev (3m)11.07%
EPS NQ rev (1m)-8.23%
EPS NQ rev (3m)-8.23%
EPS NY rev (1m)0.64%
EPS NY rev (3m)0.65%
Revenue NQ rev (1m)-2.74%
Revenue NQ rev (3m)-2.74%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.96 | ||
| Fwd PE | 19.47 | ||
| P/S | 1.67 | ||
| P/FCF | 17.88 | ||
| P/OCF | 14.24 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.96 |
EPS(TTM)11.82
EY4.77%
EPS(NY)12.72
Fwd EY5.13%
FCF(TTM)13.85
FCFY5.59%
OCF(TTM)17.39
OCFY7.02%
SpS148.27
BVpS-23.77
TBVpS-23.77
PEG (NY)N/A
PEG (5Y)1.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.28% | ||
| ROE | N/A | ||
| ROCE | 40.5% | ||
| ROIC | 29.8% | ||
| ROICexc | 34.23% | ||
| ROICexgc | 34.23% | ||
| OM | 12.24% | ||
| PM (TTM) | 8.17% | ||
| GM | 33.21% | ||
| FCFM | 9.34% |
ROA(3y)17.32%
ROA(5y)15.04%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)32.86%
ROIC(5y)29.02%
ROICexc(3y)34.72%
ROICexc(5y)31.38%
ROICexgc(3y)35.48%
ROICexgc(5y)31.97%
ROCE(3y)44.94%
ROCE(5y)39.99%
ROICexcg growth 3Y-0.99%
ROICexcg growth 5Y12.19%
ROICexc growth 3Y-0.55%
ROICexc growth 5Y12.53%
OM growth 3Y3.04%
OM growth 5Y12.99%
PM growth 3Y11.21%
PM growth 5Y22.49%
GM growth 3Y0.39%
GM growth 5Y0.78%
F-Score5
Asset Turnover1.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.54 | ||
| Debt/EBITDA | 2.7 | ||
| Cap/Depr | 102.15% | ||
| Cap/Sales | 2.39% | ||
| Interest Coverage | 7.02 | ||
| Cash Conversion | 80.5% | ||
| Profit Quality | 114.44% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.23 | ||
| Altman-Z | 3.68 |
F-Score5
WACC9.65%
ROIC/WACC3.09
Cap/Depr(3y)97.64%
Cap/Depr(5y)102.11%
Cap/Sales(3y)2.03%
Cap/Sales(5y)2.03%
Profit Quality(3y)94.58%
Profit Quality(5y)101.84%
High Growth Momentum
Growth
EPS 1Y (TTM)-12.9%
EPS 3Y13.94%
EPS 5Y20.69%
EPS Q2Q%-5.56%
EPS Next Y-8.07%
EPS Next 2Y-1.31%
EPS Next 3Y2.32%
EPS Next 5Y6.08%
Revenue 1Y (TTM)-7.2%
Revenue growth 3Y-1.21%
Revenue growth 5Y3.91%
Sales Q2Q%-1.47%
Revenue Next Year-3.29%
Revenue Next 2Y-0.96%
Revenue Next 3Y0.5%
Revenue Next 5Y2.04%
EBIT growth 1Y-11.48%
EBIT growth 3Y1.79%
EBIT growth 5Y17.4%
EBIT Next Year5.66%
EBIT Next 3Y4.72%
EBIT Next 5Y4.6%
FCF growth 1Y5.93%
FCF growth 3Y-12.62%
FCF growth 5Y4.24%
OCF growth 1Y8.27%
OCF growth 3Y-9.68%
OCF growth 5Y5.62%