LOWE'S COS INC (LOW) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:LOW • US5486611073

267.06 USD
+0.42 (+0.16%)
At close: Jan 30, 2026
264.99 USD
-2.07 (-0.78%)
After Hours: 1/30/2026, 8:04:00 PM
Fundamental Rating

6

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 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. LOW has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year LOW was profitable.
  • LOW had a positive operating cash flow in the past year.
  • LOW had positive earnings in each of the past 5 years.
  • 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 2B 4B 6B 8B 10B

1.2 Ratios

  • LOW has a better Return On Assets (12.65%) than 88.52% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 22.95%, LOW belongs to the top of the industry, outperforming 89.34% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for LOW is significantly above the industry average of 12.24%.
  • The last Return On Invested Capital (22.95%) for LOW is well below the 3 year average (32.20%), which needs to be investigated, but indicates that LOW had better years and this may not be a problem.
Industry RankSector Rank
ROA 12.65%
ROE N/A
ROIC 22.95%
ROA(3y)16.41%
ROA(5y)16.1%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)32.2%
ROIC(5y)32.68%
LOW Yearly ROA, ROE, ROICLOW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100 -100 200 300 400

1.3 Margins

  • Looking at the Profit Margin, with a value of 8.02%, LOW belongs to the top of the industry, outperforming 84.43% of the companies in the same industry.
  • LOW's Profit Margin has improved in the last couple of years.
  • The Operating Margin of LOW (12.19%) is better than 86.89% of its industry peers.
  • In the last couple of years the Operating Margin of LOW has grown nicely.
  • With a Gross Margin value of 33.59%, LOW perfoms like the industry average, outperforming 40.98% of the companies in the same industry.
  • LOW's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 12.19%
PM (TTM) 8.02%
GM 33.59%
OM growth 3Y-1.15%
OM growth 5Y6.8%
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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5

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LOW is creating value.
  • LOW has less 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 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 10B 20B 30B 40B

2.2 Solvency

  • An Altman-Z score of 3.34 indicates that LOW is not in any danger for bankruptcy at the moment.
  • LOW has a Altman-Z score of 3.34. This is in the better half of the industry: LOW outperforms 77.05% of its industry peers.
  • The Debt to FCF ratio of LOW is 5.66, which is a neutral value as it means it would take LOW, 5.66 years of fcf income to pay off all of its debts.
  • LOW's Debt to FCF ratio of 5.66 is fine compared to the rest of the industry. LOW outperforms 64.75% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5.66
Altman-Z 3.34
ROIC/WACC2.49
WACC9.21%
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 0 10B -10B 20B 30B

2.3 Liquidity

  • LOW has a Current Ratio of 1.04. This is a normal value and indicates that LOW is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of LOW (1.04) is worse than 72.95% of its industry peers.
  • LOW has a Quick Ratio of 1.04. This is a bad value and indicates that LOW is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Quick ratio of LOW (0.16) is worse than 91.80% of its industry peers.
Industry RankSector Rank
Current Ratio 1.04
Quick Ratio 0.16
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 5B 10B 15B 20B

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4

3. Growth

3.1 Past

  • LOW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.55%.
  • 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.
  • The Revenue has been growing slightly by 0.64% in the past 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)3.55%
EPS 3Y0.03%
EPS 5Y15.93%
EPS Q2Q%5.88%
Revenue 1Y (TTM)0.64%
Revenue growth 3Y-4.56%
Revenue growth 5Y3.01%
Sales Q2Q%3.19%

3.2 Future

  • Based on estimates for the next years, LOW will show a small growth in Earnings Per Share. The EPS will grow by 7.26% on average per year.
  • LOW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.00% yearly.
EPS Next Y3.37%
EPS Next 2Y4.49%
EPS Next 3Y5.79%
EPS Next 5Y7.26%
Revenue Next Year3.17%
Revenue Next 2Y5.65%
Revenue Next 3Y4.94%
Revenue Next 5Y4%

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 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. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 21.82, LOW is valued on the expensive side.
  • Based on the Price/Earnings ratio, LOW is valued a bit cheaper than the industry average as 72.13% of the companies are valued more expensively.
  • LOW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.30.
  • A Price/Forward Earnings ratio of 20.42 indicates a rather expensive valuation of LOW.
  • 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.
  • The average S&P500 Price/Forward Earnings ratio is at 25.57. LOW is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 21.82
Fwd PE 20.42
LOW Price Earnings VS Forward Price EarningsLOW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • LOW's Enterprise Value to EBITDA ratio is in line with the industry average.
  • Based on the Price/Free Cash Flow ratio, LOW is valued a bit cheaper than the industry average as 69.67% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 21.25
EV/EBITDA 15.24
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 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)6.48
PEG (5Y)1.37
EPS Next 2Y4.49%
EPS Next 3Y5.79%

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6

5. Dividend

5.1 Amount

  • LOW has a Yearly Dividend Yield of 1.75%. Purely for dividend investing, there may be better candidates out there.
  • LOW's Dividend Yield is a higher than the industry average which is at 2.15.
  • Compared to an average S&P500 Dividend Yield of 1.82, LOW has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.75%

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 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
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

  • LOW pays out 38.65% of its income as dividend. This is a sustainable payout ratio.
  • LOW's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP38.65%
EPS Next 2Y4.49%
EPS Next 3Y5.79%
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 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 / LOW FAQ

What is the fundamental rating for LOW stock?

ChartMill assigns a fundamental rating of 6 / 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 3.37% 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 38.65%.