LOWE'S COS INC (LOW)
US5486611073 - Common Stock
Overall LOW gets a fundamental rating of 5 out of 10. We evaluated LOW against 126 industry peers in the Specialty Retail industry. LOW scores excellent on profitability, but 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.
1. Profitability
1.1 Basic Checks
LOW had positive earnings in the past year.
In the past year LOW had a positive cash flow from operations.
In the past 5 years LOW has always been profitable.
LOW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 18.44%, LOW belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
The Return On Invested Capital of LOW (32.43%) is better than 96.83% of its industry peers.
LOW had an Average Return On Invested Capital over the past 3 years of 32.86%. This is significantly above the industry average of 13.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.44% | ||
| ROE | N/A | ||
| ROIC | 32.43% |
ROA(3y)17.32%
ROA(5y)15.04%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)32.86%
ROIC(5y)29.02%
1.3 Margins
LOW's Profit Margin of 8.92% is amongst the best of the industry. LOW outperforms 88.89% of its industry peers.
LOW's Profit Margin has improved in the last couple of years.
LOW has a Operating Margin of 13.38%. This is amongst the best in the industry. LOW outperforms 90.48% of its industry peers.
In the last couple of years the Operating Margin of LOW has grown nicely.
LOW has a Gross Margin (33.39%) which 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.38% | ||
| PM (TTM) | 8.92% | ||
| GM | 33.39% |
OM growth 3Y3.04%
OM growth 5Y12.99%
PM growth 3Y11.21%
PM growth 5Y22.49%
GM growth 3Y0.39%
GM growth 5Y0.78%
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.
The number of shares outstanding for LOW has been reduced compared to 5 years ago.
LOW has a worse debt/assets ratio than last year.
2.2 Solvency
LOW has an Altman-Z score of 3.93. This indicates that LOW is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.93, LOW is doing good in the industry, outperforming 79.37% of the companies in the same industry.
LOW has a debt to FCF ratio of 5.82. This is a neutral value as LOW would need 5.82 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.82, LOW is in line with its industry, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.82 | ||
| Altman-Z | 3.93 |
ROIC/WACC3.82
WACC8.5%
2.3 Liquidity
A Current Ratio of 1.23 indicates that LOW should not have too much problems paying its short term obligations.
LOW has a worse Current ratio (1.23) than 64.29% of its industry peers.
A Quick Ratio of 0.14 indicates that LOW may have some problems paying its short term obligations.
LOW has a Quick ratio of 0.14. This is amonst the worse of the industry: LOW underperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
LOW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.88%.
LOW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.69% yearly.
The Revenue for LOW has decreased by -11.01% in the past year. This is quite bad
The Revenue has been growing slightly by 3.91% on average over the past years.
EPS 1Y (TTM)-4.88%
EPS 3Y13.94%
EPS 5Y20.69%
EPS growth Q2Q-22.37%
Revenue 1Y (TTM)-11.01%
Revenue growth 3Y-1.21%
Revenue growth 5Y3.91%
Revenue growth Q2Q-17.12%
3.2 Future
The Earnings Per Share is expected to grow by 8.14% on average over the next years. This is quite good.
LOW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.20% yearly.
EPS Next Y-5.79%
EPS Next 2Y1.98%
EPS Next 3Y4.78%
EPS Next 5Y8.14%
Revenue Next Year-2.12%
Revenue Next 2Y0.53%
Revenue Next 3Y1.44%
Revenue Next 5Y2.2%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.40, which indicates a rather expensive current valuation of LOW.
Compared to the rest of the industry, the Price/Earnings ratio of LOW indicates a somewhat cheap valuation: LOW is cheaper than 65.87% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 24.67. LOW is valued slightly cheaper when compared to this.
LOW is valuated rather expensively with a Price/Forward Earnings ratio of 18.47.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LOW indicates a somewhat cheap valuation: LOW is cheaper than 62.70% 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 (21.02), we can say LOW is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.39 | ||
| Fwd PE | 18.46 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as LOW.
Based on the Price/Free Cash Flow ratio, LOW is valued a bit cheaper than the industry average as 60.32% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.04 | ||
| EV/EBITDA | 12.23 |
4.3 Compensation for Growth
LOW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.84
EPS Next 2Y1.98%
EPS Next 3Y4.78%
5. Dividend
5.1 Amount
LOW has a Yearly Dividend Yield of 1.91%. Purely for dividend investing, there may be better candidates out there.
LOW's Dividend Yield is rather good when compared to the industry average which is at 3.49. LOW pays more dividend than 80.95% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.40, LOW is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
5.2 History
The dividend of LOW is nicely growing with an annual growth rate of 19.28%!
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)19.28%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
32.84% of the earnings are spent on dividend by LOW. This is a low number and sustainable payout ratio.
The dividend of LOW is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP32.84%
EPS Next 2Y1.98%
EPS Next 3Y4.78%
LOWE'S COS INC
NYSE:LOW (5/1/2024, 8:41:02 AM)
227.13
-0.86 (-0.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap129.96B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.39 | ||
| Fwd PE | 18.46 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.44% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.38% | ||
| PM (TTM) | 8.92% | ||
| GM | 33.39% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.14 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-4.88%
EPS 3Y13.94%
EPS 5Y
EPS growth Q2Q
EPS Next Y-5.79%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-11.01%
Revenue growth 3Y-1.21%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y