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LOWE'S COS INC (LOW) Stock Fundamental Analysis

NYSE:LOW - US5486611073 - Common Stock

266.55 USD
-2.48 (-0.92%)
Last: 9/10/2025, 8:04:00 PM
267.01 USD
+0.46 (+0.17%)
Pre-Market: 9/11/2025, 7:00:20 AM
Fundamental Rating

5

LOW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 123 industry peers in the Specialty Retail industry. LOW has an excellent profitability rating, but there are some minor concerns on its financial health. LOW has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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8

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.
In the past 5 years LOW always reported a positive cash flow from operatings.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

1.2 Ratios

LOW has a better Return On Assets (14.68%) than 90.24% of its industry peers.
LOW has a better Return On Invested Capital (31.40%) than 96.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LOW is significantly above the industry average of 11.93%.
Industry RankSector 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%
LOW Yearly ROA, ROE, ROICLOW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100 -100 200 300 400

1.3 Margins

LOW's Profit Margin of 8.18% is amongst the best of the industry. LOW outperforms 85.37% of its industry peers.
In the last couple of years the Profit Margin of LOW has grown nicely.
With an excellent Operating Margin value of 12.35%, LOW belongs to the best of the industry, outperforming 88.62% 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 33.46%, LOW perfoms like the industry average, outperforming 43.09% of the companies in the same industry.
LOW's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
LOW Yearly Profit, Operating, Gross MarginsLOW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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5

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 better debt/assets ratio than last year.
LOW Yearly Shares OutstandingLOW Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
LOW Yearly Total Debt VS Total AssetsLOW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.2 Solvency

LOW has an Altman-Z score of 3.73. This indicates that LOW is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.73, LOW belongs to the best of the industry, outperforming 81.30% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 4.52, LOW is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 4.52
Altman-Z 3.73
ROIC/WACC3.42
WACC9.18%
LOW Yearly LT Debt VS Equity VS FCFLOW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B -10B 20B 30B

2.3 Liquidity

LOW has a Current Ratio of 1.05. This is a normal value and indicates that LOW is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.05, LOW is doing worse than 72.36% of the companies in the same industry.
A Quick Ratio of 0.29 indicates that LOW may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.29, LOW is doing worse than 77.24% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.05
Quick Ratio 0.29
LOW Yearly Current Assets VS Current LiabilitesLOW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

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3

3. Growth

3.1 Past

LOW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.67%.
Measured over the past years, LOW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.93% on average per year.
Looking at the last year, LOW shows a decrease in Revenue. The Revenue has decreased by -0.49% in the last year.
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

The Earnings Per Share is expected to grow by 7.45% on average over the next years.
The Revenue is expected to grow by 2.85% on average over the next years.
EPS Next Y3.64%
EPS Next 2Y5.94%
EPS Next 3Y7.05%
EPS Next 5Y7.45%
Revenue Next Year1.71%
Revenue Next 2Y3.27%
Revenue Next 3Y3.3%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
LOW Yearly Revenue VS EstimatesLOW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20B 40B 60B 80B 100B
LOW Yearly EPS VS EstimatesLOW Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5 10 15 20

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4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 22.08, 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 70.73% of the companies are valued more expensively.
LOW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.82, which indicates a rather expensive current valuation of LOW.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LOW is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.54. LOW is around the same levels.
Industry RankSector Rank
PE 22.08
Fwd PE 19.82
LOW Price Earnings VS Forward Price EarningsLOW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LOW is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, LOW is valued a bit cheaper than the industry average as 76.42% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 19.45
EV/EBITDA 14.45
LOW Per share dataLOW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100

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.
LOW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.07
PEG (5Y)1.39
EPS Next 2Y5.94%
EPS Next 3Y7.05%

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6

5. Dividend

5.1 Amount

LOW has a Yearly Dividend Yield of 1.81%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.23, LOW pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.45, LOW is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.81%

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 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
LOW Yearly Dividends per shareLOW Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4

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 2Y5.94%
EPS Next 3Y7.05%
LOW Yearly Income VS Free CF VS DividendLOW Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B
LOW Dividend Payout.LOW Dividend Payout, showing the Payout Ratio.LOW Dividend Payout.PayoutRetained Earnings

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LOWE'S COS INC

NYSE:LOW (9/10/2025, 8:04:00 PM)

Premarket: 267.01 +0.46 (+0.17%)

266.55

-2.48 (-0.92%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)08-20 2025-08-20/bmo
Earnings (Next)11-19 2025-11-19/bmo
Inst Owners78%
Inst Owner Change-0.67%
Ins Owners0.1%
Ins Owner Change2.37%
Market Cap149.53B
Analysts75.38
Price Target284.43 (6.71%)
Short Float %1.55%
Short Ratio3.01
Dividend
Industry RankSector Rank
Dividend Yield 1.81%
Yearly Dividend4.53
Dividend Growth(5Y)16.94%
DP37.92%
Div Incr Years34
Div Non Decr Years34
Ex-Date10-22 2025-10-22 (1.2)
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)5.65%
PT rev (3m)5.4%
EPS NQ rev (1m)-0.98%
EPS NQ rev (3m)-2.2%
EPS NY rev (1m)0.21%
EPS NY rev (3m)0.51%
Revenue NQ rev (1m)1.65%
Revenue NQ rev (3m)1.63%
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)0.65%
Valuation
Industry RankSector Rank
PE 22.08
Fwd PE 19.82
P/S 1.79
P/FCF 19.45
P/OCF 15.23
P/B N/A
P/tB N/A
EV/EBITDA 14.45
EPS(TTM)12.07
EY4.53%
EPS(NY)13.45
Fwd EY5.04%
FCF(TTM)13.7
FCFY5.14%
OCF(TTM)17.5
OCFY6.57%
SpS149.04
BVpS-20.32
TBVpS-23.29
PEG (NY)6.07
PEG (5Y)1.39
Profitability
Industry RankSector 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%
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 Turnover1.79
Health
Industry RankSector 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 3.73
F-Score6
WACC9.18%
ROIC/WACC3.42
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 Y3.64%
EPS Next 2Y5.94%
EPS Next 3Y7.05%
EPS Next 5Y7.45%
Revenue 1Y (TTM)-0.49%
Revenue growth 3Y-4.56%
Revenue growth 5Y3.01%
Sales Q2Q%1.58%
Revenue Next Year1.71%
Revenue Next 2Y3.27%
Revenue Next 3Y3.3%
Revenue Next 5Y2.85%
EBIT growth 1Y-0.73%
EBIT growth 3Y-5.12%
EBIT growth 5Y10.39%
EBIT Next Year19.22%
EBIT Next 3Y10.53%
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%