LOWE'S COS INC (LOW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LOW - US5486611073 - Common Stock
243 USD
+0.85 (+0.35%)
242.53 USD
-0.47 (-0.19%)
Taking everything into account, LOW scores 6 out of 10 in our fundamental rating. LOW was compared to 123 industry peers in the Specialty Retail industry. While LOW belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. LOW has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year LOW was profitable.
LOW had a positive operating cash flow in the past year.
In the past 5 years LOW has always been profitable.
In the past 5 years LOW always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 12.65%, LOW belongs to the best of the industry, outperforming 87.80% of the companies in the same industry.
LOW has a Return On Invested Capital of 22.95%. This is amongst the best in the industry. LOW outperforms 89.43% 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 12.17%.
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
LOW has a Profit Margin of 8.02%. This is amongst the best in the industry. LOW outperforms 84.55% of its industry peers.
In the last couple of years the Profit Margin of LOW has grown nicely.
LOW has a Operating Margin of 12.19%. This is amongst the best in the industry. LOW outperforms 86.99% of its industry peers.
LOW's Operating Margin has improved in the last couple of years.
The Gross Margin of LOW (33.59%) is comparable to the rest of the industry.
LOW's Gross Margin has been stable in the last couple of years.
| 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
LOW has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
LOW has a better debt/assets ratio than last year.
2.2 Solvency
LOW has an Altman-Z score of 3.22. This indicates that LOW is financially healthy and has little risk of bankruptcy at the moment.
LOW has a Altman-Z score of 3.22. This is in the better half of the industry: LOW outperforms 78.05% of its industry peers.
LOW has a debt to FCF ratio of 5.66. This is a neutral value as LOW would need 5.66 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.66, LOW is doing good in the industry, outperforming 65.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.66 | ||
| Altman-Z | 3.22 |
ROIC/WACC2.53
WACC9.09%
2.3 Liquidity
LOW has a Current Ratio of 1.04. 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 1.04, LOW is doing worse than 73.98% of the companies in the same industry.
LOW has a Quick Ratio of 1.04. This is a bad value and indicates that LOW is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of LOW (0.16) is worse than 92.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.16 |
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%.
The Earnings Per Share has been growing by 15.93% on average over the past years. This is quite good.
The Revenue has been growing slightly by 0.64% in the past 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
LOW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.04% yearly.
The Revenue is expected to grow by 4.00% on average over the next years.
EPS Next Y3.37%
EPS Next 2Y4.53%
EPS Next 3Y5.82%
EPS Next 5Y8.04%
Revenue Next Year3.17%
Revenue Next 2Y5.72%
Revenue Next 3Y4.93%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.85, the valuation of LOW can be described as rather expensive.
LOW's Price/Earnings ratio is a bit cheaper when compared to the industry. LOW is cheaper than 74.80% of the companies in the same industry.
LOW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.59.
LOW is valuated rather expensively with a Price/Forward Earnings ratio of 18.56.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LOW indicates a somewhat cheap valuation: LOW is cheaper than 65.85% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of LOW to the average of the S&P500 Index (24.03), we can say LOW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.85 | ||
| Fwd PE | 18.56 |
4.2 Price Multiples
LOW's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, LOW is valued a bit cheaper than the industry average as 73.17% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.33 | ||
| EV/EBITDA | 14.16 |
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)5.89
PEG (5Y)1.25
EPS Next 2Y4.53%
EPS Next 3Y5.82%
5. Dividend
5.1 Amount
LOW has a Yearly Dividend Yield of 1.94%.
LOW's Dividend Yield is a higher than the industry average which is at 1.98.
Compared to an average S&P500 Dividend Yield of 1.88, LOW has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
5.2 History
On average, the dividend of LOW grows each year by 16.94%, 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)16.94%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
LOW pays out 38.65% 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.
DP38.65%
EPS Next 2Y4.53%
EPS Next 3Y5.82%
243
+0.85 (+0.35%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners80.03%
Inst Owner Change2.01%
Ins Owners0.09%
Ins Owner Change-2.29%
Market Cap136.31B
Revenue(TTM)84.26B
Net Income(TTM)6.76B
Analysts77
Price TargetN/A
Short Float %1.75%
Short Ratio3.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
Yearly Dividend4.53
Dividend Growth(5Y)16.94%
DP38.65%
Div Incr Years34
Div Non Decr Years34
Ex-Date
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)-1.96%
PT rev (3m)-3.28%
EPS NQ rev (1m)-6.18%
EPS NQ rev (3m)-6.11%
EPS NY rev (1m)-0.47%
EPS NY rev (3m)-0.26%
Revenue NQ rev (1m)3.26%
Revenue NQ rev (3m)5.7%
Revenue NY rev (1m)1.12%
Revenue NY rev (3m)1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.85 | ||
| Fwd PE | 18.56 | ||
| P/S | 1.62 | ||
| P/FCF | 19.33 | ||
| P/OCF | 14.8 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.16 |
EPS(TTM)12.24
EY5.04%
EPS(NY)13.09
Fwd EY5.39%
FCF(TTM)12.57
FCFY5.17%
OCF(TTM)16.42
OCFY6.76%
SpS150.2
BVpS-18.51
TBVpS-36.29
PEG (NY)5.89
PEG (5Y)1.25
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 | 3.22 |
F-Score6
WACC9.09%
ROIC/WACC2.53
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 2Y4.53%
EPS Next 3Y5.82%
EPS Next 5Y8.04%
Revenue 1Y (TTM)0.64%
Revenue growth 3Y-4.56%
Revenue growth 5Y3.01%
Sales Q2Q%3.19%
Revenue Next Year3.17%
Revenue Next 2Y5.72%
Revenue Next 3Y4.93%
Revenue Next 5Y4%
EBIT growth 1Y0.28%
EBIT growth 3Y-5.66%
EBIT growth 5Y10.02%
EBIT Next Year20.21%
EBIT Next 3Y10.53%
EBIT Next 5Y8.17%
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.
Can you provide the valuation status for LOWE'S COS INC?
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.
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 19.85 and the Price/Book (PB) ratio is -13.13.
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.