LOWE'S COS INC (LOW) Stock Fundamental Analysis
USA - NYSE:LOW - US5486611073 - Common Stock
242.71 USD
-1.16 (-0.48%)
242.66 USD
-0.05 (-0.02%)
We assign a fundamental rating of 5 out of 10 to LOW. LOW was compared to 119 industry peers in the Specialty Retail industry. LOW has an excellent profitability rating, but there are some minor concerns on its financial health. LOW is valued correctly, but it does not seem to be growing. LOW also has an excellent dividend rating. With these ratings, LOW could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year LOW was profitable.
In the past year LOW had a positive cash flow from operations.
Each year in the past 5 years LOW has been profitable.
In the past 5 years LOW always reported a positive cash flow from operatings.
1.2 Ratios
LOW has a better Return On Assets (14.68%) than 89.92% of its industry peers.
LOW has a Return On Invested Capital of 31.40%. This is amongst the best in the industry. LOW outperforms 97.48% 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 11.94%.
| 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
The Profit Margin of LOW (8.18%) is better than 84.03% 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 87.39% of the companies in the same industry.
In the last couple of years the Operating Margin of LOW has grown nicely.
LOW has a Gross Margin (33.46%) 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 | 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.
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
Compared to 1 year ago, LOW has an improved debt to assets ratio.
2.2 Solvency
LOW has an Altman-Z score of 3.60. This indicates that LOW is financially healthy and has little risk of bankruptcy at the moment.
LOW has a better Altman-Z score (3.60) than 79.83% 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 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.52 | ||
| Altman-Z | 3.6 |
ROIC/WACC3.44
WACC9.14%
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 71.43% of its industry peers.
LOW has a Quick Ratio of 1.05. This is a bad value and indicates that LOW is not financially healthy enough and could expect problems in meeting its short term obligations.
LOW's Quick ratio of 0.29 is on the low side compared to the rest of the industry. LOW is outperformed by 78.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.29 |
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.
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
LOW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.45% yearly.
The Revenue is expected to grow by 2.85% on average over the next years.
EPS Next Y3.85%
EPS Next 2Y6.2%
EPS Next 3Y6.88%
EPS Next 5Y7.45%
Revenue Next Year1.97%
Revenue Next 2Y4.04%
Revenue Next 3Y3.47%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.11, 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 72.27% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.91, LOW is valued a bit cheaper.
With a Price/Forward Earnings ratio of 17.96, LOW is valued on the expensive side.
LOW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LOW is cheaper than 63.87% of the companies in the same industry.
LOW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.11 | ||
| Fwd PE | 17.96 |
4.2 Price Multiples
LOW's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, LOW is valued a bit cheaper than 76.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.71 | ||
| EV/EBITDA | 13.42 |
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)5.23
PEG (5Y)1.26
EPS Next 2Y6.2%
EPS Next 3Y6.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.97%, LOW has a reasonable but not impressive dividend return.
LOW's Dividend Yield is rather good when compared to the industry average which is at 5.52. LOW pays more dividend than 81.51% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, LOW has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
5.2 History
On average, the dividend of LOW grows each year by 16.94%, 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)16.94%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
LOW pays out 37.92% 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.
DP37.92%
EPS Next 2Y6.2%
EPS Next 3Y6.88%
242.71
-1.16 (-0.48%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners79.12%
Inst Owner Change0%
Ins Owners0.09%
Ins Owner Change-2.66%
Market Cap136.12B
Revenue(TTM)83.61B
Net Income(TTM)6.84B
Analysts76.5
Price Target287.73 (18.55%)
Short Float %1.41%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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)0.23%
PT rev (3m)6.87%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-1.3%
EPS NY rev (1m)0.2%
EPS NY rev (3m)0.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.87%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.11 | ||
| Fwd PE | 17.96 | ||
| P/S | 1.63 | ||
| P/FCF | 17.71 | ||
| P/OCF | 13.86 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.42 |
EPS(TTM)12.07
EY4.97%
EPS(NY)13.51
Fwd EY5.57%
FCF(TTM)13.71
FCFY5.65%
OCF(TTM)17.51
OCFY7.21%
SpS149.09
BVpS-20.33
TBVpS-23.3
PEG (NY)5.23
PEG (5Y)1.26
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 | 3.6 |
F-Score6
WACC9.14%
ROIC/WACC3.44
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 Y3.85%
EPS Next 2Y6.2%
EPS Next 3Y6.88%
EPS Next 5Y7.45%
Revenue 1Y (TTM)-0.49%
Revenue growth 3Y-4.56%
Revenue growth 5Y3.01%
Sales Q2Q%1.58%
Revenue Next Year1.97%
Revenue Next 2Y4.04%
Revenue Next 3Y3.47%
Revenue Next 5Y2.85%
EBIT growth 1Y-0.73%
EBIT growth 3Y-5.12%
EBIT growth 5Y10.39%
EBIT Next Year19.7%
EBIT Next 3Y10.65%
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 5 / 10 to LOW.
Can you provide the valuation status for LOWE'S COS INC?
ChartMill assigns a valuation rating of 4 / 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 20.11 and the Price/Book (PB) ratio is -11.94.
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.