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 122 industry peers in the Specialty Retail industry. LOW scores excellent on profitability, but there are some minor concerns on its financial health. LOW has a decent growth rate and is not valued too expensively.
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.
- In the past 5 years LOW has always been profitable.
- Each year in the past 5 years LOW had a positive operating cash flow.
1.2 Ratios
- LOW has a Return On Assets of 12.65%. This is amongst the best in the industry. LOW outperforms 88.52% of its industry peers.
- LOW has a Return On Invested Capital of 22.95%. This is amongst the best in the industry. LOW outperforms 89.34% 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 12.24%.
- 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
- Looking at the Profit Margin, with a value of 8.02%, LOW belongs to the top of the industry, outperforming 84.43% of the companies in the same industry.
- In the last couple of years the Profit Margin of LOW has grown nicely.
- With an excellent Operating Margin value of 12.19%, LOW belongs to the best of the industry, outperforming 86.89% of the companies in the same industry.
- In the last couple of years the Operating Margin of LOW has grown nicely.
- 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.
- LOW has less shares outstanding than it did 1 year ago.
- 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.
- With a decent Altman-Z score value of 3.40, LOW is doing good in the industry, outperforming 77.87% of the companies in the same industry.
- 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.
- Looking at the Debt to FCF ratio, with a value of 5.66, LOW is in the better half of the industry, outperforming 64.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.66 | ||
| Altman-Z | 3.4 |
ROIC/WACC2.46
WACC9.34%
2.3 Liquidity
- A Current Ratio of 1.04 indicates that LOW should not have too much problems paying 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.
- With a Quick ratio value of 0.16, LOW is not doing good in the industry: 91.80% of the companies in the same industry are doing better.
| 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.
- Looking at the last year, LOW shows a small growth in Revenue. The Revenue has grown by 0.64% in the last year.
- The Revenue has been growing slightly by 3.01% on average over the past years.
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
- Based on estimates for the next years, LOW will show a small growth in Earnings Per Share. The EPS will grow by 7.26% on average per year.
- The Revenue is expected to grow by 4.00% on average over the next years.
EPS Next Y3.37%
EPS Next 2Y4.48%
EPS Next 3Y5.78%
EPS Next 5Y7.26%
Revenue Next Year3.17%
Revenue Next 2Y5.69%
Revenue Next 3Y4.91%
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
- With a Price/Earnings ratio of 22.68, LOW is valued on the expensive side.
- Based on the Price/Earnings ratio, LOW is valued a bit cheaper than 71.31% of the companies in the same industry.
- LOW's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.47.
- With a Price/Forward Earnings ratio of 21.22, LOW is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of LOW indicates a somewhat cheap valuation: LOW is cheaper than 63.11% of the companies listed in the same industry.
- LOW is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, 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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of LOW indicates a somewhat cheap valuation: LOW is cheaper than 71.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.08 | ||
| EV/EBITDA | 15.71 |
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)6.72
PEG (5Y)1.42
EPS Next 2Y4.48%
EPS Next 3Y5.78%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.73%, LOW has a reasonable but not impressive dividend return.
- LOW's Dividend Yield is a higher than the industry average which is at 2.13.
- Compared to an average S&P500 Dividend Yield of 1.89, 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 been paying a dividend for at least 10 years, so it has 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)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 Change0.07%
Ins Owners0.09%
Ins Owner Change-2.29%
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)0.15%
PT rev (3m)-3.35%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-6.15%
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 | 15.71 |
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 2Y5.69%
Revenue Next 3Y4.91%
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%.