LOWE'S COS INC (LOW)
US5486611073 - Common Stock
Overall LOW gets a fundamental rating of 5 out of 10. We evaluated LOW against 123 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.
1. Profitability
1.1 Basic Checks
LOW had positive earnings in the past year.
In the past year LOW had a positive cash flow from operations.
LOW had positive earnings in each of the past 5 years.
In the past 5 years LOW always reported a positive cash flow from operatings.
1.2 Ratios
LOW has a better Return On Assets (15.39%) than 92.56% of its industry peers.
With an excellent Return On Invested Capital value of 28.69%, LOW belongs to the best of the industry, outperforming 95.04% 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 12.24%.
The last Return On Invested Capital (28.69%) for LOW is well below the 3 year average (32.86%), which needs to be investigated, but indicates that LOW had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.39% | ||
| ROE | N/A | ||
| ROIC | 28.69% |
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's Profit Margin of 8.23% is amongst the best of the industry. LOW outperforms 87.60% of its industry peers.
In the last couple of years the Profit Margin of LOW has grown nicely.
The Operating Margin of LOW (12.38%) is better than 89.26% of its industry peers.
In the last couple of years the Operating Margin of LOW has grown nicely.
LOW has a Gross Margin (33.21%) 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.38% | ||
| PM (TTM) | 8.23% | ||
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LOW 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.
The debt/assets ratio for LOW is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.86 indicates that LOW is not in any danger for bankruptcy at the moment.
The Altman-Z score of LOW (3.86) is better than 79.34% of its industry peers.
LOW has a debt to FCF ratio of 4.74. This is a neutral value as LOW would need 4.74 years to pay back of all of its debts.
LOW has a Debt to FCF ratio (4.74) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.74 | ||
| Altman-Z | 3.86 |
ROIC/WACC3.17
WACC9.06%
2.3 Liquidity
A Current Ratio of 1.22 indicates that LOW should not have too much problems paying its short term obligations.
LOW's Current ratio of 1.22 is in line compared to the rest of the industry. LOW outperforms 41.32% of its industry peers.
A Quick Ratio of 0.30 indicates that LOW may have some problems paying its short term obligations.
LOW has a worse Quick ratio (0.30) than 74.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
LOW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.99%.
The Earnings Per Share has been growing by 20.69% on average over the past years. This is a very strong growth
Looking at the last year, LOW shows a decrease in Revenue. The Revenue has decreased by -9.87% in the last year.
Measured over the past years, LOW shows a small growth in Revenue. The Revenue has been growing by 3.91% on average per year.
EPS 1Y (TTM)-12.99%
EPS 3Y13.94%
EPS 5Y20.69%
EPS Q2Q%-10.09%
Revenue 1Y (TTM)-9.87%
Revenue growth 3Y-1.21%
Revenue growth 5Y3.91%
Sales Q2Q%-5.49%
3.2 Future
LOW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.91% yearly.
LOW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.23% yearly.
EPS Next Y-8.65%
EPS Next 2Y-1.09%
EPS Next 3Y2.47%
EPS Next 5Y6.91%
Revenue Next Year-3.81%
Revenue Next 2Y-1.01%
Revenue Next 3Y0.49%
Revenue Next 5Y2.23%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.67 indicates a rather expensive valuation of LOW.
Compared to the rest of the industry, the Price/Earnings ratio of LOW indicates a somewhat cheap valuation: LOW is cheaper than 64.46% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.53. LOW is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 21.27, which indicates a rather expensive current valuation of LOW.
LOW's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.40, LOW is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.67 | ||
| Fwd PE | 21.27 |
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.
Based on the Price/Free Cash Flow ratio, LOW is valued a bit cheaper than 69.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.34 | ||
| EV/EBITDA | 14.93 |
4.3 Compensation for Growth
The excellent profitability rating of LOW may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.1
EPS Next 2Y-1.09%
EPS Next 3Y2.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.70%, LOW has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.08, LOW pays a better dividend. On top of this LOW pays more dividend than 80.17% of the companies listed in the same industry.
LOW's Dividend Yield is slightly below the S&P500 average, which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)19.28%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
LOW pays out 36.68% 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.
DP36.68%
EPS Next 2Y-1.09%
EPS Next 3Y2.47%
LOWE'S COS INC
NYSE:LOW (11/18/2024, 5:05:00 PM)
After market: 271.77 0 (0%)271.77
+2.37 (+0.88%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap154.17B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.67 | ||
| Fwd PE | 21.27 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.39% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.38% | ||
| PM (TTM) | 8.23% | ||
| GM | 33.21% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.3 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-12.99%
EPS 3Y13.94%
EPS 5Y
EPS Q2Q%
EPS Next Y-8.65%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-9.87%
Revenue growth 3Y-1.21%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y