LOWE'S COS INC (1LOW.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1LOW - US5486611073 - Common Stock
214.9 EUR
+8.3 (+4.02%)
1LOW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 61 industry peers in the Specialty Retail industry. 1LOW scores excellent on profitability, but there are some minor concerns on its financial health. 1LOW has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- 1LOW had positive earnings in the past year.
- 1LOW had a positive operating cash flow in the past year.
- In the past 5 years 1LOW has always been profitable.
- In the past 5 years 1LOW always reported a positive cash flow from operatings.
1.2 Ratios
- 1LOW has a better Return On Assets (12.65%) than 84.75% of its industry peers.
- With an excellent Return On Invested Capital value of 22.95%, 1LOW belongs to the best of the industry, outperforming 89.83% of the companies in the same industry.
- 1LOW had an Average Return On Invested Capital over the past 3 years of 32.20%. This is significantly above the industry average of 10.05%.
- The last Return On Invested Capital (22.95%) for 1LOW is well below the 3 year average (32.20%), which needs to be investigated, but indicates that 1LOW had better years and this may not be a problem.
| 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
- 1LOW's Profit Margin of 8.02% is amongst the best of the industry. 1LOW outperforms 83.05% of its industry peers.
- In the last couple of years the Profit Margin of 1LOW has grown nicely.
- With an excellent Operating Margin value of 12.19%, 1LOW belongs to the best of the industry, outperforming 88.14% of the companies in the same industry.
- 1LOW's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 33.59%, 1LOW perfoms like the industry average, outperforming 45.76% of the companies in the same industry.
- 1LOW'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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1LOW is creating value.
- The number of shares outstanding for 1LOW has been reduced compared to 1 year ago.
- 1LOW has less shares outstanding than it did 5 years ago.
- 1LOW has a better debt/assets ratio than last year.
2.2 Solvency
- 1LOW has an Altman-Z score of 3.25. This indicates that 1LOW is financially healthy and has little risk of bankruptcy at the moment.
- 1LOW has a Altman-Z score of 3.25. This is amongst the best in the industry. 1LOW outperforms 84.75% of its industry peers.
- The Debt to FCF ratio of 1LOW is 5.66, which is a neutral value as it means it would take 1LOW, 5.66 years of fcf income to pay off all of its debts.
- 1LOW has a Debt to FCF ratio (5.66) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.66 | ||
| Altman-Z | 3.25 |
ROIC/WACC2.49
WACC9.23%
2.3 Liquidity
- 1LOW has a Current Ratio of 1.04. This is a normal value and indicates that 1LOW is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.04, 1LOW is not doing good in the industry: 69.49% of the companies in the same industry are doing better.
- 1LOW has a Quick Ratio of 1.04. This is a bad value and indicates that 1LOW is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.16, 1LOW is doing worse than 89.83% of the companies in the same industry.
| 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.
- 1LOW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.93% yearly.
- Looking at the last year, 1LOW 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, 1LOW will show a small growth in Earnings Per Share. The EPS will grow by 7.26% on average per year.
- 1LOW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.00% yearly.
EPS Next Y3.37%
EPS Next 2Y4.48%
EPS Next 3Y5.78%
EPS Next 5Y7.26%
Revenue Next Year3.17%
Revenue Next 2Y5.66%
Revenue Next 3Y4.95%
Revenue Next 5Y4%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 20.39, the valuation of 1LOW can be described as rather expensive.
- 72.88% of the companies in the same industry are more expensive than 1LOW, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, 1LOW is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 19.09, 1LOW is valued on the expensive side.
- 1LOW's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. 1LOW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.39 | ||
| Fwd PE | 19.09 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1LOW.
- 1LOW's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.86 | ||
| EV/EBITDA | 14.47 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1LOW does not grow enough to justify the current Price/Earnings ratio.
- 1LOW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.05
PEG (5Y)1.28
EPS Next 2Y4.48%
EPS Next 3Y5.78%
5. Dividend
5.1 Amount
- 1LOW has a Yearly Dividend Yield of 1.73%.
- Compared to an average industry Dividend Yield of 1.26, 1LOW pays a bit more dividend than its industry peers.
- 1LOW's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
5.2 History
- The dividend of 1LOW is nicely growing with an annual growth rate of 16.94%!
Dividend Growth(5Y)16.94%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 38.65% of the earnings are spent on dividend by 1LOW. This is a low number and sustainable payout ratio.
- 1LOW'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%
LOWE'S COS INC / 1LOW.MI FAQ
What is the fundamental rating for 1LOW stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1LOW.MI.
What is the valuation status of LOWE'S COS INC (1LOW.MI) stock?
ChartMill assigns a valuation rating of 4 / 10 to LOWE'S COS INC (1LOW.MI). This can be considered as Fairly Valued.
How profitable is LOWE'S COS INC (1LOW.MI) stock?
LOWE'S COS INC (1LOW.MI) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for 1LOW stock?
The Price/Earnings (PE) ratio for LOWE'S COS INC (1LOW.MI) is 20.39 and the Price/Book (PB) ratio is -13.49.
What is the expected EPS growth for LOWE'S COS INC (1LOW.MI) stock?
The Earnings per Share (EPS) of LOWE'S COS INC (1LOW.MI) is expected to grow by 3.37% in the next year.