LOWE'S COS INC (LOW) Stock Fundamental Analysis
NYSE:LOW - New York Stock Exchange, Inc. - US5486611073 - Common Stock - Currency: USD
Overall LOW gets a fundamental rating of 6 out of 10. We evaluated LOW against 122 industry peers in the Specialty Retail industry. While LOW has a great profitability rating, there are some minor concerns on its financial health. LOW has a valuation in line with the averages, but on the other hand it scores bad on growth. LOW also has an excellent dividend rating. These ratings would make LOW suitable for dividend investing!
1. Profitability
1.1 Basic Checks
LOW had positive earnings in the past year.
LOW had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 15.05%, LOW belongs to the top of the industry, outperforming 90.16% of the companies in the same industry.
With an excellent Return On Invested Capital value of 34.07%, LOW belongs to the best of the industry, outperforming 98.36% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LOW is significantly above the industry average of 12.03%.
The last Return On Invested Capital (34.07%) for LOW is above the 3 year average (32.39%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.05% | ||
| ROE | N/A | ||
| ROIC | 34.07% |
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
The Profit Margin of LOW (8.20%) is better than 85.25% of its industry peers.
In the last couple of years the Profit Margin of LOW has grown nicely.
Looking at the Operating Margin, with a value of 12.38%, LOW belongs to the top of the industry, outperforming 88.52% of the companies in the same industry.
In the last couple of years the Operating Margin of LOW has grown nicely.
With a Gross Margin value of 33.37%, LOW perfoms like the industry average, outperforming 41.80% of the companies in the same industry.
LOW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.38% | ||
| PM (TTM) | 8.2% | ||
| GM | 33.37% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LOW is creating value.
The number of shares outstanding for LOW has been reduced compared to 1 year ago.
Compared to 5 years ago, LOW has less shares outstanding
LOW has a better debt/assets ratio than last year.
2.2 Solvency
LOW has an Altman-Z score of 3.48. This indicates that LOW is financially healthy and has little risk of bankruptcy at the moment.
LOW has a better Altman-Z score (3.48) than 77.05% of its industry peers.
The Debt to FCF ratio of LOW is 5.20, which is a neutral value as it means it would take LOW, 5.20 years of fcf income to pay off all of its debts.
LOW has a better Debt to FCF ratio (5.20) than 64.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.2 | ||
| Altman-Z | 3.48 |
ROIC/WACC3.72
WACC9.17%
2.3 Liquidity
A Current Ratio of 1.01 indicates that LOW should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.01, LOW is doing worse than 73.77% of the companies in the same industry.
LOW has a Quick Ratio of 1.01. This is a bad value and indicates that LOW is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.19, LOW is not doing good in the industry: 87.70% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.19 |
3. Growth
3.1 Past
The earnings per share for LOW have decreased by -4.90% in the last year.
The Earnings Per Share has been growing by 15.93% on average over the past years. This is quite good.
LOW shows a decrease in Revenue. In the last year, the revenue decreased by -2.52%.
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)-4.9%
EPS 3Y0.03%
EPS 5Y15.93%
EPS Q2Q%-4.58%
Revenue 1Y (TTM)-2.52%
Revenue growth 3Y-4.56%
Revenue growth 5Y3.01%
Sales Q2Q%-2.03%
3.2 Future
LOW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.99% yearly.
LOW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.94% yearly.
EPS Next Y3.42%
EPS Next 2Y6.2%
EPS Next 3Y7.85%
EPS Next 5Y7.99%
Revenue Next Year1.06%
Revenue Next 2Y2.33%
Revenue Next 3Y2.76%
Revenue Next 5Y2.94%
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 19.46, the valuation of LOW can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of LOW indicates a somewhat cheap valuation: LOW is cheaper than 72.13% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of LOW to the average of the S&P500 Index (27.91), we can say LOW is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.06, which indicates a rather expensive current valuation of LOW.
LOW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LOW is cheaper than 63.11% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LOW to the average of the S&P500 Index (37.11), we can say LOW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.46 | ||
| Fwd PE | 17.06 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LOW.
LOW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LOW is cheaper than 72.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.34 | ||
| EV/EBITDA | 13 |
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)5.69
PEG (5Y)1.22
EPS Next 2Y6.2%
EPS Next 3Y7.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.13%, LOW has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.77, LOW pays a better dividend. On top of this LOW pays more dividend than 82.79% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, LOW has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
5.2 History
The dividend of LOW is nicely growing with an annual growth rate of 16.94%!
LOW has paid a dividend for at least 10 years, which is 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
37.76% 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.
DP37.76%
EPS Next 2Y6.2%
EPS Next 3Y7.85%
NYSE:LOW (7/30/2025, 9:38:43 AM)
230.465
+0.43 (+0.18%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners78.09%
Inst Owner Change-0.46%
Ins Owners0.1%
Ins Owner Change4.27%
Market Cap129.16B
Analysts75.5
Price Target269.23 (16.82%)
Short Float %1.36%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
Yearly Dividend4.53
Dividend Growth(5Y)16.94%
DP37.76%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.14%
Min EPS beat(2)0.49%
Max EPS beat(2)3.78%
EPS beat(4)4
Avg EPS beat(4)2.01%
Min EPS beat(4)0.49%
Max EPS beat(4)3.78%
EPS beat(8)7
Avg EPS beat(8)2.01%
EPS beat(12)11
Avg EPS beat(12)2.42%
EPS beat(16)15
Avg EPS beat(16)3.72%
Revenue beat(2)1
Avg Revenue beat(2)-0.33%
Min Revenue beat(2)-1.02%
Max Revenue beat(2)0.35%
Revenue beat(4)2
Avg Revenue beat(4)-0.71%
Min Revenue beat(4)-2.31%
Max Revenue beat(4)0.35%
Revenue beat(8)3
Avg Revenue beat(8)-0.87%
Revenue beat(12)5
Avg Revenue beat(12)-0.78%
Revenue beat(16)8
Avg Revenue beat(16)-0.32%
PT rev (1m)0.15%
PT rev (3m)-4.45%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-0.3%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-0.4%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.46 | ||
| Fwd PE | 17.06 | ||
| P/S | 1.55 | ||
| P/FCF | 19.34 | ||
| P/OCF | 14.77 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 13 |
EPS(TTM)11.84
EY5.14%
EPS(NY)13.51
Fwd EY5.86%
FCF(TTM)11.92
FCFY5.17%
OCF(TTM)15.6
OCFY6.77%
SpS148.52
BVpS-23.65
TBVpS-23.65
PEG (NY)5.69
PEG (5Y)1.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.05% | ||
| ROE | N/A | ||
| ROCE | 44.84% | ||
| ROIC | 34.07% | ||
| ROICexc | 40.03% | ||
| ROICexgc | 40.03% | ||
| OM | 12.38% | ||
| PM (TTM) | 8.2% | ||
| GM | 33.37% | ||
| FCFM | 8.02% |
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%
ROICexcg growth 3Y-4.01%
ROICexcg 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 Turnover1.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.2 | ||
| Debt/EBITDA | 2.48 | ||
| Cap/Depr | 103.51% | ||
| Cap/Sales | 2.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.07% | ||
| Profit Quality | 97.83% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.19 | ||
| Altman-Z | 3.48 |
F-Score6
WACC9.17%
ROIC/WACC3.72
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)-4.9%
EPS 3Y0.03%
EPS 5Y15.93%
EPS Q2Q%-4.58%
EPS Next Y3.42%
EPS Next 2Y6.2%
EPS Next 3Y7.85%
EPS Next 5Y7.99%
Revenue 1Y (TTM)-2.52%
Revenue growth 3Y-4.56%
Revenue growth 5Y3.01%
Sales Q2Q%-2.03%
Revenue Next Year1.06%
Revenue Next 2Y2.33%
Revenue Next 3Y2.76%
Revenue Next 5Y2.94%
EBIT growth 1Y-4.95%
EBIT growth 3Y-5.12%
EBIT growth 5Y10.39%
EBIT Next Year19.28%
EBIT Next 3Y9.81%
EBIT Next 5Y7.62%
FCF growth 1Y14.13%
FCF growth 3Y-2.32%
FCF growth 5Y22.21%
OCF growth 1Y13.27%
OCF growth 3Y-1.64%
OCF growth 5Y17.44%