LOWE'S COS INC (LOW) Stock Fundamental Analysis
USA - NYSE:LOW - US5486611073 - Common Stock
219.57 USD
-5.43 (-2.41%)
219.6 USD
+0.03 (+0.01%)
LOW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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.
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.
Each year in the past 5 years LOW has been profitable.
Each year in the past 5 years LOW had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 14.68%, LOW belongs to the best of the industry, outperforming 90.16% of the companies in the same industry.
The Return On Invested Capital of LOW (31.40%) is better than 97.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LOW is significantly above the industry average of 11.81%.
| Industry Rank | Sector 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%
1.3 Margins
LOW has a better Profit Margin (8.18%) than 84.43% of its industry peers.
In the last couple of years the Profit Margin of LOW has grown nicely.
LOW has a Operating Margin of 12.35%. This is amongst the best in the industry. LOW outperforms 86.89% of its industry peers.
In the last couple of years the Operating Margin of LOW has grown nicely.
LOW has a Gross Margin of 33.46%. This is comparable to the rest of the industry: LOW outperforms 42.62% of its industry peers.
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 | 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LOW is creating value.
LOW has less shares outstanding than it did 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.
2.2 Solvency
An Altman-Z score of 3.49 indicates that LOW is not in any danger for bankruptcy at the moment.
LOW has a better Altman-Z score (3.49) than 77.87% of its industry peers.
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.
LOW has a Debt to FCF ratio of 4.52. This is in the better half of the industry: LOW outperforms 67.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.52 | ||
| Altman-Z | 3.49 |
ROIC/WACC3.54
WACC8.87%
2.3 Liquidity
A Current Ratio of 1.05 indicates that LOW should not have too much problems paying its short term obligations.
LOW has a Current ratio of 1.05. This is in the lower half of the industry: LOW underperforms 71.31% of its industry peers.
A Quick Ratio of 0.29 indicates that LOW may have some problems paying its short term obligations.
With a Quick ratio value of 0.29, LOW is not doing good in the industry: 79.51% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.67% over the past year.
The Earnings Per Share has been growing by 15.93% on average over the past years. This is quite good.
Looking at the last year, LOW shows a decrease in Revenue. The Revenue has decreased by -0.49% in the last year.
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)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.
Based on estimates for the next years, LOW will show a small growth in Revenue. The Revenue will grow by 2.85% on average per year.
EPS Next Y3.86%
EPS Next 2Y6.12%
EPS Next 3Y6.8%
EPS Next 5Y7.45%
Revenue Next Year2.03%
Revenue Next 2Y4.12%
Revenue Next 3Y3.54%
Revenue Next 5Y2.85%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
LOW is valuated rather expensively with a Price/Earnings ratio of 18.19.
72.95% of the companies in the same industry are more expensive than LOW, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of LOW to the average of the S&P500 Index (25.51), we can say LOW is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.28, LOW is valued correctly.
LOW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LOW is cheaper than 61.48% of the companies in the same industry.
LOW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.19 | ||
| Fwd PE | 16.28 |
4.2 Price Multiples
LOW's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LOW indicates a somewhat cheap valuation: LOW is cheaper than 73.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.02 | ||
| EV/EBITDA | 12.57 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of LOW may justify a higher PE ratio.
PEG (NY)4.72
PEG (5Y)1.14
EPS Next 2Y6.12%
EPS Next 3Y6.8%
5. Dividend
5.1 Amount
LOW has a Yearly Dividend Yield of 2.07%.
LOW's Dividend Yield is a higher than the industry average which is at 5.60.
LOW's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
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
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 2Y6.12%
EPS Next 3Y6.8%
219.57
-5.43 (-2.41%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners79.12%
Inst Owner Change1.97%
Ins Owners0.09%
Ins Owner Change-8.14%
Market Cap123.14B
Revenue(TTM)83.61B
Net Income(TTM)6.84B
Analysts76.59
Price Target287.87 (31.11%)
Short Float %1.4%
Short Ratio2.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
Yearly Dividend4.53
Dividend Growth(5Y)16.94%
DP37.92%
Div Incr Years34
Div Non Decr Years34
Ex-Date
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)0.05%
PT rev (3m)7.07%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)-0.9%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)1.71%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.19 | ||
| Fwd PE | 16.28 | ||
| P/S | 1.47 | ||
| P/FCF | 16.02 | ||
| P/OCF | 12.54 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.57 |
EPS(TTM)12.07
EY5.5%
EPS(NY)13.49
Fwd EY6.14%
FCF(TTM)13.71
FCFY6.24%
OCF(TTM)17.51
OCFY7.97%
SpS149.09
BVpS-20.33
TBVpS-23.3
PEG (NY)4.72
PEG (5Y)1.14
Graham NumberN/A
Profitability
| Industry Rank | Sector 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%
ROICexgc growth 3Y-4.01%
ROICexgc 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 Rank | Sector 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 | 3.49 |
F-Score6
WACC8.87%
ROIC/WACC3.54
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 Y3.86%
EPS Next 2Y6.12%
EPS Next 3Y6.8%
EPS Next 5Y7.45%
Revenue 1Y (TTM)-0.49%
Revenue growth 3Y-4.56%
Revenue growth 5Y3.01%
Sales Q2Q%1.58%
Revenue Next Year2.03%
Revenue Next 2Y4.12%
Revenue Next 3Y3.54%
Revenue Next 5Y2.85%
EBIT growth 1Y-0.73%
EBIT growth 3Y-5.12%
EBIT growth 5Y10.39%
EBIT Next Year19.7%
EBIT Next 3Y10.59%
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%
LOWE'S COS INC / LOW FAQ
What is the fundamental rating for LOW stock?
ChartMill assigns a fundamental rating of 6 / 10 to LOW.
Can you provide the valuation status for LOWE'S COS INC?
ChartMill assigns a valuation rating of 5 / 10 to LOWE'S COS INC (LOW). This can be considered as Fairly Valued.
Can you provide the profitability details for LOWE'S COS INC?
LOWE'S COS INC (LOW) has a profitability rating of 8 / 10.
What is the valuation of LOWE'S COS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LOWE'S COS INC (LOW) is 18.19 and the Price/Book (PB) ratio is -10.8.
What is the financial health of LOWE'S COS INC (LOW) stock?
The financial health rating of LOWE'S COS INC (LOW) is 5 / 10.