LOWE'S COS INC (LOW) Fundamental Analysis & Valuation

NYSE:LOW • US5486611073

Current stock price

240.32 USD
-2.23 (-0.92%)
At close:
239.44 USD
-0.88 (-0.37%)
After Hours:

This LOW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. LOW Profitability Analysis

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.
  • Each year in the past 5 years LOW had a positive operating cash flow.
LOW Yearly Net Income VS EBIT VS OCF VS FCFLOW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B 8B 10B

1.2 Ratios

  • The Return On Assets of LOW (12.25%) is better than 89.43% of its industry peers.
  • LOW has a better Return On Invested Capital (22.64%) than 91.06% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for LOW is significantly above the industry average of 13.24%.
  • The 3 year average ROIC (29.23%) for LOW is well above the current ROIC(22.64%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 12.25%
ROE N/A
ROIC 22.64%
ROA(3y)15.6%
ROA(5y)16.06%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)29.23%
ROIC(5y)31.25%
LOW Yearly ROA, ROE, ROICLOW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 100 -100 200 300 400

1.3 Margins

  • Looking at the Profit Margin, with a value of 7.69%, LOW belongs to the top of the industry, outperforming 86.99% of the companies in the same industry.
  • LOW's Profit Margin has improved in the last couple of years.
  • LOW has a Operating Margin of 11.96%. This is amongst the best in the industry. LOW outperforms 87.80% of its industry peers.
  • In the last couple of years the Operating Margin of LOW has remained more or less at the same level.
  • The Gross Margin of LOW (33.47%) is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of LOW has remained more or less at the same level.
Industry RankSector Rank
OM 11.96%
PM (TTM) 7.69%
GM 33.47%
OM growth 3Y3.98%
OM growth 5Y-0.63%
PM growth 3Y5.17%
PM growth 5Y3.47%
GM growth 3Y0.24%
GM growth 5Y0.28%
LOW Yearly Profit, Operating, Gross MarginsLOW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10 20 30

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5

2. LOW Health Analysis

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.
  • The number of shares outstanding for LOW remains at a similar level 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.
LOW Yearly Shares OutstandingLOW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M
LOW Yearly Total Debt VS Total AssetsLOW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10B 20B 30B 40B 50B

2.2 Solvency

  • An Altman-Z score of 3.25 indicates that LOW is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 3.25, LOW is doing good in the industry, outperforming 73.17% of the companies in the same industry.
  • LOW has a debt to FCF ratio of 5.22. This is a neutral value as LOW would need 5.22 years to pay back of all of its debts.
  • LOW has a better Debt to FCF ratio (5.22) than 64.23% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5.22
Altman-Z 3.25
ROIC/WACC2.88
WACC7.85%
LOW Yearly LT Debt VS Equity VS FCFLOW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 10B -10B 20B 30B

2.3 Liquidity

  • A Current Ratio of 1.08 indicates that LOW should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.08, LOW is doing worse than 69.92% of the companies in the same industry.
  • LOW has a Quick Ratio of 1.08. This is a bad value and indicates that LOW is not financially healthy enough and could expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 0.19, LOW is doing worse than 91.06% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.08
Quick Ratio 0.19
LOW Yearly Current Assets VS Current LiabilitesLOW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 5B 10B 15B 20B

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3

3. LOW Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 2.59% over the past year.
  • LOW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.84% yearly.
  • The Revenue has been growing slightly by 3.12% in the past year.
  • Measured over the past years, LOW shows a decrease in Revenue. The Revenue has been decreasing by -0.75% on average per year.
EPS 1Y (TTM)2.59%
EPS 3Y-3.63%
EPS 5Y6.84%
EPS Q2Q%2.59%
Revenue 1Y (TTM)3.12%
Revenue growth 3Y-3.85%
Revenue growth 5Y-0.75%
Sales Q2Q%10.95%

3.2 Future

  • LOW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.50% yearly.
  • LOW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.25% yearly.
EPS Next Y3.61%
EPS Next 2Y5.92%
EPS Next 3Y7.23%
EPS Next 5Y7.5%
Revenue Next Year8.36%
Revenue Next 2Y5.93%
Revenue Next 3Y5.35%
Revenue Next 5Y4.25%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
LOW Yearly Revenue VS EstimatesLOW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B 80B 100B
LOW Yearly EPS VS EstimatesLOW Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15 20

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4

4. LOW Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 19.55 indicates a rather expensive valuation of LOW.
  • LOW's Price/Earnings ratio is a bit cheaper when compared to the industry. LOW is cheaper than 69.11% of the companies in the same industry.
  • LOW is valuated rather cheaply when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 18.87 indicates a rather expensive valuation of LOW.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of LOW indicates a somewhat cheap valuation: LOW is cheaper than 63.41% 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 (21.99), we can say LOW is valued inline with the index average.
Industry RankSector Rank
PE 19.55
Fwd PE 18.87
LOW Price Earnings VS Forward Price EarningsLOW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • LOW's Enterprise Value to EBITDA ratio is in line with the industry average.
  • LOW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LOW is cheaper than 65.85% of the companies in the same industry.
Industry RankSector Rank
P/FCF 17.59
EV/EBITDA 13.9
LOW Per share dataLOW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150

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.
  • The excellent profitability rating of LOW may justify a higher PE ratio.
PEG (NY)5.42
PEG (5Y)2.86
EPS Next 2Y5.92%
EPS Next 3Y7.23%

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6

5. LOW Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.95%, LOW has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 3.79, LOW pays a bit more dividend than its industry peers.
  • LOW's Dividend Yield is comparable with the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.95%

5.2 History

  • On average, the dividend of LOW grows each year by 15.57%, 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)15.57%
Div Incr Years34
Div Non Decr Years34
LOW Yearly Dividends per shareLOW Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

5.3 Sustainability

  • LOW pays out 39.73% 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.
DP39.73%
EPS Next 2Y5.92%
EPS Next 3Y7.23%
LOW Yearly Income VS Free CF VS DividendLOW Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B 8B
LOW Dividend Payout.LOW Dividend Payout, showing the Payout Ratio.LOW Dividend Payout.PayoutRetained Earnings

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LOW Fundamentals: All Metrics, Ratios and Statistics

LOWE'S COS INC

NYSE:LOW (4/28/2026, 5:35:39 PM)

After market: 239.44 -0.88 (-0.37%)

240.32

-2.23 (-0.92%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)02-25
Earnings (Next)05-19
Inst Owners80.54%
Inst Owner Change0.17%
Ins Owners0.1%
Ins Owner Change3.32%
Market Cap134.59B
Revenue(TTM)86.29B
Net Income(TTM)6.63B
Analysts77.07
Price Target290.11 (20.72%)
Short Float %2.16%
Short Ratio4.51
Dividend
Industry RankSector Rank
Dividend Yield 1.95%
Yearly Dividend4.7
Dividend Growth(5Y)15.57%
DP39.73%
Div Incr Years34
Div Non Decr Years34
Ex-Date04-22
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.49%
Min EPS beat(2)0.84%
Max EPS beat(2)2.14%
EPS beat(4)4
Avg EPS beat(4)1.13%
Min EPS beat(4)0.49%
Max EPS beat(4)2.14%
EPS beat(8)8
Avg EPS beat(8)1.88%
EPS beat(12)11
Avg EPS beat(12)2.14%
EPS beat(16)15
Avg EPS beat(16)2.55%
Revenue beat(2)1
Avg Revenue beat(2)-0.4%
Min Revenue beat(2)-1.01%
Max Revenue beat(2)0.21%
Revenue beat(4)1
Avg Revenue beat(4)-0.71%
Min Revenue beat(4)-1.02%
Max Revenue beat(4)0.21%
Revenue beat(8)4
Avg Revenue beat(8)-0.56%
Revenue beat(12)5
Avg Revenue beat(12)-0.53%
Revenue beat(16)6
Avg Revenue beat(16)-0.79%
PT rev (1m)0.42%
PT rev (3m)4.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.58%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)-2.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.76%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.16%
Valuation
Industry RankSector Rank
PE 19.55
Fwd PE 18.87
P/S 1.56
P/FCF 17.59
P/OCF 13.64
P/B N/A
P/tB N/A
EV/EBITDA 13.9
EPS(TTM)12.29
EY5.11%
EPS(NY)12.73
Fwd EY5.3%
FCF(TTM)13.66
FCFY5.68%
OCF(TTM)17.61
OCFY7.33%
SpS154.07
BVpS-17.71
TBVpS-35.3
PEG (NY)5.42
PEG (5Y)2.86
Graham Number0 (-100%)
Profitability
Industry RankSector Rank
ROA 12.25%
ROE N/A
ROCE 29.77%
ROIC 22.64%
ROICexc 23.55%
ROICexgc 33.44%
OM 11.96%
PM (TTM) 7.69%
GM 33.47%
FCFM 8.87%
ROA(3y)15.6%
ROA(5y)16.06%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)29.23%
ROIC(5y)31.25%
ROICexc(3y)31.1%
ROICexc(5y)33.21%
ROICexgc(3y)34.34%
ROICexgc(5y)35.62%
ROCE(3y)38.43%
ROCE(5y)41.27%
ROICexgc growth 3Y-1.64%
ROICexgc growth 5Y-1.78%
ROICexc growth 3Y-11.69%
ROICexc growth 5Y-8.18%
OM growth 3Y3.98%
OM growth 5Y-0.63%
PM growth 3Y5.17%
PM growth 5Y3.47%
GM growth 3Y0.24%
GM growth 5Y0.28%
F-Score6
Asset Turnover1.59
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5.22
Debt/EBITDA 2.99
Cap/Depr 100.87%
Cap/Sales 2.56%
Interest Coverage 250
Cash Conversion 78.8%
Profit Quality 115.31%
Current Ratio 1.08
Quick Ratio 0.19
Altman-Z 3.25
F-Score6
WACC7.85%
ROIC/WACC2.88
Cap/Depr(3y)100.24%
Cap/Depr(5y)98.3%
Cap/Sales(3y)2.38%
Cap/Sales(5y)2.19%
Profit Quality(3y)102.12%
Profit Quality(5y)101.99%
High Growth Momentum
Growth
EPS 1Y (TTM)2.59%
EPS 3Y-3.63%
EPS 5Y6.84%
EPS Q2Q%2.59%
EPS Next Y3.61%
EPS Next 2Y5.92%
EPS Next 3Y7.23%
EPS Next 5Y7.5%
Revenue 1Y (TTM)3.12%
Revenue growth 3Y-3.85%
Revenue growth 5Y-0.75%
Sales Q2Q%10.95%
Revenue Next Year8.36%
Revenue Next 2Y5.93%
Revenue Next 3Y5.35%
Revenue Next 5Y4.25%
EBIT growth 1Y-1.36%
EBIT growth 3Y-0.02%
EBIT growth 5Y-1.38%
EBIT Next Year25.91%
EBIT Next 3Y11.78%
EBIT Next 5Y8.09%
FCF growth 1Y-0.61%
FCF growth 3Y4.21%
FCF growth 5Y-3.74%
OCF growth 1Y2.48%
OCF growth 3Y4.72%
OCF growth 5Y-2.24%

LOWE'S COS INC / LOW Fundamental Analysis FAQ

What is the fundamental rating for LOW stock?

ChartMill assigns a fundamental rating of 5 / 10 to LOW.


What is the valuation status of LOWE'S COS INC (LOW) stock?

ChartMill assigns a valuation rating of 4 / 10 to LOWE'S COS INC (LOW). This can be considered as Fairly Valued.


What is the profitability of LOW stock?

LOWE'S COS INC (LOW) has a profitability rating of 8 / 10.


Can you provide the financial health for LOW stock?

The financial health rating of LOWE'S COS INC (LOW) is 5 / 10.


Can you provide the dividend sustainability for LOW stock?

The dividend rating of LOWE'S COS INC (LOW) is 6 / 10 and the dividend payout ratio is 39.73%.