LOWE'S COS INC (LOW) Stock Fundamental Analysis
USA - NYSE:LOW - US5486611073 - Common Stock
233.855 USD
-3.91 (-1.64%)
Taking everything into account, LOW scores 5 out of 10 in our fundamental rating. LOW was compared to 121 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
In the past year LOW was profitable.
In the past year LOW had a positive cash flow from operations.
LOW had positive earnings in each of the past 5 years.
Each year in the past 5 years LOW had a positive operating cash flow.
1.2 Ratios
The Return On Assets of LOW (14.68%) is better than 90.08% of its industry peers.
Looking at the Return On Invested Capital, with a value of 31.40%, LOW belongs to the top of the industry, outperforming 97.52% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LOW is significantly above the industry average of 11.82%.
| 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
Looking at the Profit Margin, with a value of 8.18%, LOW belongs to the top of the industry, outperforming 84.30% 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 86.78% of its industry peers.
In the last couple of years the Operating Margin of LOW has grown nicely.
LOW's Gross Margin of 33.46% is in line compared to the rest of the industry. LOW outperforms 42.98% 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 | 12.35% | ||
| 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.
LOW has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, LOW has less shares outstanding
Compared to 1 year ago, LOW has an improved debt to assets ratio.
2.2 Solvency
LOW has an Altman-Z score of 3.57. This indicates that LOW is financially healthy and has little risk of bankruptcy at the moment.
LOW has a better Altman-Z score (3.57) than 78.51% of its industry peers.
LOW has a debt to FCF ratio of 4.52. This is a neutral value as LOW would need 4.52 years to pay back of all of its debts.
The Debt to FCF ratio of LOW (4.52) is better than 66.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.52 | ||
| Altman-Z | 3.57 |
ROIC/WACC3.52
WACC8.92%
2.3 Liquidity
A Current Ratio of 1.05 indicates that LOW should not have too much problems paying its short term obligations.
LOW has a worse Current ratio (1.05) than 71.90% of its industry peers.
A Quick Ratio of 0.29 indicates that LOW may have some problems paying its short term obligations.
LOW has a Quick ratio of 0.29. This is in the lower half of the industry: LOW underperforms 79.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.67% over the past year.
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 -0.49%.
The Revenue has been growing slightly by 3.01% on average over the past years.
EPS 1Y (TTM)0.67%
EPS 3Y0.03%
EPS 5Y15.93%
EPS Q2Q%5.61%
Revenue 1Y (TTM)-0.49%
Revenue growth 3Y-4.56%
Revenue growth 5Y3.01%
Sales Q2Q%1.58%
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 7.45% on average per year.
LOW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.85% yearly.
EPS Next Y3.84%
EPS Next 2Y6.15%
EPS Next 3Y7.14%
EPS Next 5Y7.45%
Revenue Next Year1.97%
Revenue Next 2Y4.01%
Revenue Next 3Y3.86%
Revenue Next 5Y2.85%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.37, the valuation of LOW can be described as rather expensive.
Based on the Price/Earnings ratio, LOW is valued a bit cheaper than the industry average as 71.90% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.03, LOW is valued a bit cheaper.
LOW is valuated rather expensively with a Price/Forward Earnings ratio of 17.32.
Based on the Price/Forward Earnings ratio, LOW is valued a bit cheaper than 61.98% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LOW to the average of the S&P500 Index (22.27), we can say LOW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.37 | ||
| Fwd PE | 17.32 |
4.2 Price Multiples
LOW's Enterprise Value to EBITDA is on the same level as the industry average.
LOW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LOW is cheaper than 74.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.06 | ||
| EV/EBITDA | 13.14 |
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)5.04
PEG (5Y)1.22
EPS Next 2Y6.15%
EPS Next 3Y7.14%
5. Dividend
5.1 Amount
LOW has a Yearly Dividend Yield of 2.00%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.48, LOW pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, LOW has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
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 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
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 2Y6.15%
EPS Next 3Y7.14%
NYSE:LOW (11/5/2025, 3:44:08 PM)
233.855
-3.91 (-1.64%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners79.12%
Inst Owner Change-0.31%
Ins Owners0.09%
Ins Owner Change-2.66%
Market Cap131.15B
Revenue(TTM)83.61B
Net Income(TTM)6.84B
Analysts76.5
Price Target287.87 (23.1%)
Short Float %1.44%
Short Ratio2.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2% |
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)0.28%
PT rev (3m)6.93%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-1.06%
EPS NY rev (1m)0%
EPS NY rev (3m)0.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.37 | ||
| Fwd PE | 17.32 | ||
| P/S | 1.57 | ||
| P/FCF | 17.06 | ||
| P/OCF | 13.36 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.14 |
EPS(TTM)12.07
EY5.16%
EPS(NY)13.5
Fwd EY5.77%
FCF(TTM)13.71
FCFY5.86%
OCF(TTM)17.51
OCFY7.49%
SpS149.09
BVpS-20.33
TBVpS-23.3
PEG (NY)5.04
PEG (5Y)1.22
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 | 3.57 |
F-Score6
WACC8.92%
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)0.67%
EPS 3Y0.03%
EPS 5Y15.93%
EPS Q2Q%5.61%
EPS Next Y3.84%
EPS Next 2Y6.15%
EPS Next 3Y7.14%
EPS Next 5Y7.45%
Revenue 1Y (TTM)-0.49%
Revenue growth 3Y-4.56%
Revenue growth 5Y3.01%
Sales Q2Q%1.58%
Revenue Next Year1.97%
Revenue Next 2Y4.01%
Revenue Next 3Y3.86%
Revenue Next 5Y2.85%
EBIT growth 1Y-0.73%
EBIT growth 3Y-5.12%
EBIT growth 5Y10.39%
EBIT Next Year19.7%
EBIT Next 3Y10.65%
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 5 / 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 19.37 and the Price/Book (PB) ratio is -11.5.
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.