LOWE'S COS INC (LOW) Stock Fundamental Analysis
USA - NYSE:LOW - US5486611073 - Common Stock
229.17 USD
+0.76 (+0.33%)
Overall LOW gets a fundamental rating of 6 out of 10. We evaluated LOW 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 has a valuation in line with the averages, 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.
LOW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LOW's Return On Assets of 14.68% is amongst the best of the industry. LOW outperforms 90.16% of its industry peers.
The Return On Invested Capital of LOW (31.40%) is better than 97.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LOW is significantly above the industry average of 11.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.68% | ||
| ROE | N/A | ||
| ROIC | 31.4% |
ROA(3y)16.41%
ROA(5y)16.1%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)32.39%
ROIC(5y)32.79%
1.3 Margins
With an excellent Profit Margin value of 8.18%, LOW belongs to the best 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.
LOW has a Operating Margin of 12.35%. This is amongst the best in the industry. LOW outperforms 86.89% of its industry peers.
LOW's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 33.46%, LOW perfoms like the industry average, outperforming 42.62% of the companies in the same 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 | 12.35% | ||
| PM (TTM) | 8.18% | ||
| GM | 33.46% |
OM growth 3Y-0.59%
OM growth 5Y7.17%
PM growth 3Y-1.72%
PM growth 5Y6.99%
GM growth 3Y0.01%
GM growth 5Y0.94%
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.
The number of shares outstanding for LOW has been reduced compared to 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 3.51 indicates that LOW is not in any danger for bankruptcy at the moment.
LOW has a Altman-Z score of 3.51. This is in the better half of the industry: LOW outperforms 79.51% of its industry peers.
The Debt to FCF ratio of LOW is 4.52, which is a neutral value as it means it would take LOW, 4.52 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.52, LOW is in the better half of the industry, outperforming 67.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.52 | ||
| Altman-Z | 3.51 |
ROIC/WACC3.52
WACC8.91%
2.3 Liquidity
LOW has a Current Ratio of 1.05. This is a normal value and indicates that LOW is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.05, LOW is doing worse than 71.31% of the companies in the same industry.
LOW has a Quick Ratio of 1.05. This is a bad value and indicates that LOW is not financially healthy enough and could expect problems in meeting its short term obligations.
LOW has a Quick ratio of 0.29. This is in the lower half of the industry: LOW underperforms 78.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
LOW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.55%.
LOW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.93% yearly.
LOW shows a decrease in Revenue. In the last year, the revenue decreased by -3.13%.
Measured over the past years, LOW shows a small growth in Revenue. The Revenue has been growing by 3.01% on average per year.
EPS 1Y (TTM)3.55%
EPS 3Y0.03%
EPS 5Y15.93%
EPS Q2Q%5.88%
Revenue 1Y (TTM)-3.13%
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 7.45% on average over the next years.
The Revenue is expected to grow by 2.85% on average over the next years.
EPS Next Y3.86%
EPS Next 2Y6.12%
EPS Next 3Y6.8%
EPS Next 5Y7.45%
Revenue Next Year2.03%
Revenue Next 2Y4.12%
Revenue Next 3Y3.54%
Revenue Next 5Y2.85%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.72 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 72.95% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.47. LOW is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.99 indicates a correct valuation of LOW.
LOW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LOW is cheaper than 60.66% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.42. LOW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.72 | ||
| Fwd PE | 16.99 |
4.2 Price Multiples
LOW's Enterprise Value to EBITDA is on the same level as the industry average.
72.95% of the companies in the same industry are more expensive than LOW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.72 | ||
| EV/EBITDA | 12.72 |
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)4.85
PEG (5Y)1.18
EPS Next 2Y6.12%
EPS Next 3Y6.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.10%, LOW has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.59, LOW pays a bit more dividend than its industry peers.
LOW's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
5.2 History
On average, the dividend of LOW grows each year by 16.94%, which is quite nice.
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
37.92% 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.
DP37.92%
EPS Next 2Y6.12%
EPS Next 3Y6.8%
NYSE:LOW (11/20/2025, 10:46:00 AM)
229.17
+0.76 (+0.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners79.12%
Inst Owner Change1.97%
Ins Owners0.09%
Ins Owner Change-8.14%
Market Cap128.52B
Revenue(TTM)83.67B
Net Income(TTM)6.84B
Analysts76.59
Price Target283.21 (23.58%)
Short Float %1.4%
Short Ratio2.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
Yearly Dividend4.53
Dividend Growth(5Y)16.94%
DP37.92%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.76%
Min EPS beat(2)0.49%
Max EPS beat(2)1.03%
EPS beat(4)4
Avg EPS beat(4)1.69%
Min EPS beat(4)0.49%
Max EPS beat(4)3.78%
EPS beat(8)7
Avg EPS beat(8)2.06%
EPS beat(12)11
Avg EPS beat(12)2.43%
EPS beat(16)15
Avg EPS beat(16)3.48%
Revenue beat(2)0
Avg Revenue beat(2)-1.01%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)-1.01%
Revenue beat(4)2
Avg Revenue beat(4)-0.39%
Min Revenue beat(4)-1.02%
Max Revenue beat(4)0.35%
Revenue beat(8)3
Avg Revenue beat(8)-0.86%
Revenue beat(12)5
Avg Revenue beat(12)-0.59%
Revenue beat(16)7
Avg Revenue beat(16)-0.49%
PT rev (1m)0.05%
PT rev (3m)7.07%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)-0.9%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)1.71%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.72 | ||
| Fwd PE | 16.99 | ||
| P/S | 1.54 | ||
| P/FCF | 16.72 | ||
| P/OCF | 13.09 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.72 |
EPS(TTM)12.24
EY5.34%
EPS(NY)13.49
Fwd EY5.89%
FCF(TTM)13.71
FCFY5.98%
OCF(TTM)17.51
OCFY7.64%
SpS149.09
BVpS-20.33
TBVpS-23.3
PEG (NY)4.85
PEG (5Y)1.18
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.68% | ||
| ROE | N/A | ||
| ROCE | 41.33% | ||
| ROIC | 31.4% | ||
| ROICexc | 39.76% | ||
| ROICexgc | 43.43% | ||
| OM | 12.35% | ||
| PM (TTM) | 8.18% | ||
| GM | 33.46% | ||
| FCFM | 9.19% |
ROA(3y)16.41%
ROA(5y)16.1%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)32.39%
ROIC(5y)32.79%
ROICexc(3y)34.76%
ROICexc(5y)35.76%
ROICexgc(3y)35.07%
ROICexgc(5y)36.32%
ROCE(3y)42.91%
ROCE(5y)43.33%
ROICexgc growth 3Y-4.01%
ROICexgc growth 5Y13.22%
ROICexc growth 3Y-2.86%
ROICexc growth 5Y13.49%
OM growth 3Y-0.59%
OM growth 5Y7.17%
PM growth 3Y-1.72%
PM growth 5Y6.99%
GM growth 3Y0.01%
GM growth 5Y0.94%
F-Score6
Asset Turnover1.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.52 | ||
| Debt/EBITDA | 2.47 | ||
| Cap/Depr | 105.18% | ||
| Cap/Sales | 2.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.48% | ||
| Profit Quality | 112.38% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | 3.51 |
F-Score6
WACC8.91%
ROIC/WACC3.52
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 Y3.86%
EPS Next 2Y6.12%
EPS Next 3Y6.8%
EPS Next 5Y7.45%
Revenue 1Y (TTM)-3.13%
Revenue growth 3Y-4.56%
Revenue growth 5Y3.01%
Sales Q2Q%3.19%
Revenue Next Year2.03%
Revenue Next 2Y4.12%
Revenue Next 3Y3.54%
Revenue Next 5Y2.85%
EBIT growth 1Y-0.73%
EBIT growth 3Y-5.12%
EBIT growth 5Y10.39%
EBIT Next Year19.7%
EBIT Next 3Y10.59%
EBIT Next 5Y7.42%
FCF growth 1Y15.82%
FCF growth 3Y-2.32%
FCF growth 5Y22.21%
OCF growth 1Y14.92%
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.
Can you provide the valuation status for LOWE'S COS INC?
ChartMill assigns a valuation rating of 5 / 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.
What is the valuation of LOWE'S COS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LOWE'S COS INC (LOW) is 18.72 and the Price/Book (PB) ratio is -11.27.
What is the financial health of LOWE'S COS INC (LOW) stock?
The financial health rating of LOWE'S COS INC (LOW) is 5 / 10.