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

NYSE:LOW • US5486611073

Current stock price

237.59 USD
-1.86 (-0.78%)
At close:
237.8 USD
+0.21 (+0.09%)
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.
  • 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.
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

  • With an excellent Return On Assets value of 12.25%, LOW belongs to the best of the industry, outperforming 87.90% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 22.64%, LOW belongs to the best of the industry, outperforming 89.52% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for LOW is significantly above the industry average of 13.59%.
  • The last Return On Invested Capital (22.64%) for LOW is well below the 3 year average (29.23%), which needs to be investigated, but indicates that LOW had better years and this may not be a problem.
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

  • LOW has a better Profit Margin (7.69%) than 86.29% of its industry peers.
  • In the last couple of years the Profit Margin of LOW has grown nicely.
  • LOW's Operating Margin of 11.96% is amongst the best of the industry. LOW outperforms 87.10% of its industry peers.
  • In the last couple of years the Operating Margin of LOW has remained more or less at the same level.
  • LOW has a Gross Margin (33.47%) which is in line with its industry peers.
  • 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.
  • LOW has about the same amout of shares outstanding than it did 1 year ago.
  • LOW has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, LOW has an improved debt to assets ratio.
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

  • LOW has an Altman-Z score of 3.22. This indicates that LOW is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of LOW (3.22) is better than 77.42% of its industry peers.
  • The Debt to FCF ratio of LOW is 5.22, which is a neutral value as it means it would take LOW, 5.22 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 5.22, LOW is doing good in the industry, outperforming 64.52% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5.22
Altman-Z 3.22
ROIC/WACC2.41
WACC9.4%
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

  • LOW has a Current Ratio of 1.08. 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 1.08, LOW is doing worse than 67.74% of the companies in the same industry.
  • A Quick Ratio of 0.19 indicates that LOW may have some problems paying its short term obligations.
  • LOW has a Quick ratio of 0.19. This is amonst the worse of the industry: LOW underperforms 86.29% of its industry peers.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. LOW Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 2.59% over the past year.
  • Measured over the past 5 years, LOW shows a small growth in Earnings Per Share. The EPS has been growing by 6.84% on average per year.
  • Looking at the last year, LOW shows a small growth in Revenue. The Revenue has grown by 3.12% in the last year.
  • LOW shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.75% yearly.
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

  • The Earnings Per Share is expected to grow by 7.50% on average over the next years.
  • LOW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.25% yearly.
EPS Next Y3.9%
EPS Next 2Y6.05%
EPS Next 3Y7.23%
EPS Next 5Y7.5%
Revenue Next Year8.25%
Revenue Next 2Y5.89%
Revenue Next 3Y5.32%
Revenue Next 5Y4.25%

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 stable.
  • 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 25

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4

4. LOW Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 19.33 indicates a rather expensive 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 71.77% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.70, LOW is valued a bit cheaper.
  • Based on the Price/Forward Earnings ratio of 18.61, the valuation of LOW can be described as rather expensive.
  • Based on the Price/Forward Earnings ratio, LOW is valued a bit cheaper than 63.71% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, LOW is valued a bit cheaper.
Industry RankSector Rank
PE 19.33
Fwd PE 18.61
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

  • 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 70.16% of the companies in the same industry.
Industry RankSector Rank
P/FCF 17.42
EV/EBITDA 13.7
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 an expensive valuation of the company.
  • LOW has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.95
PEG (5Y)2.83
EPS Next 2Y6.05%
EPS Next 3Y7.23%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. LOW Dividend Analysis

5.1 Amount

  • LOW has a Yearly Dividend Yield of 2.00%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.51, LOW pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, LOW has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2%

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 their dividend for at least 10 years, which is a reliable track record.
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

  • 39.73% 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.
DP39.73%
EPS Next 2Y6.05%
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 (3/13/2026, 8:04:00 PM)

After market: 237.8 +0.21 (+0.09%)

237.59

-1.86 (-0.78%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)02-25
Earnings (Next)05-19
Inst Owners80.45%
Inst Owner Change0.78%
Ins Owners0.09%
Ins Owner Change-0.99%
Market Cap133.29B
Revenue(TTM)86.29B
Net Income(TTM)6.63B
Analysts77.5
Price Target288.9 (21.6%)
Short Float %1.92%
Short Ratio3.87
Dividend
Industry RankSector Rank
Dividend Yield 2%
Yearly Dividend4.7
Dividend Growth(5Y)15.57%
DP39.73%
Div Incr Years34
Div Non Decr Years34
Ex-Date01-21
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)0.95%
PT rev (3m)4.04%
EPS NQ rev (1m)-3.62%
EPS NQ rev (3m)-3.62%
EPS NY rev (1m)-2.38%
EPS NY rev (3m)-2.45%
Revenue NQ rev (1m)-0.76%
Revenue NQ rev (3m)-0.85%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.08%
Valuation
Industry RankSector Rank
PE 19.33
Fwd PE 18.61
P/S 1.54
P/FCF 17.42
P/OCF 13.51
P/B N/A
P/tB N/A
EV/EBITDA 13.7
EPS(TTM)12.29
EY5.17%
EPS(NY)12.77
Fwd EY5.37%
FCF(TTM)13.64
FCFY5.74%
OCF(TTM)17.58
OCFY7.4%
SpS153.81
BVpS-17.68
TBVpS-35.24
PEG (NY)4.95
PEG (5Y)2.83
Graham NumberN/A
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 3.22
F-Score6
WACC9.4%
ROIC/WACC2.41
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 Y3.9%
EPS Next 2Y6.05%
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 Year8.25%
Revenue Next 2Y5.89%
Revenue Next 3Y5.32%
Revenue Next 5Y4.25%
EBIT growth 1Y-1.36%
EBIT growth 3Y-0.02%
EBIT growth 5Y-1.38%
EBIT Next Year25.93%
EBIT Next 3Y11.45%
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.


Can you provide the profitability details for LOWE'S COS INC?

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


Can you provide the expected EPS growth for LOW stock?

The Earnings per Share (EPS) of LOWE'S COS INC (LOW) is expected to grow by 3.9% in the next year.


How sustainable is the dividend of LOWE'S COS INC (LOW) stock?

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