LOWE'S COS INC (LOW) Stock Fundamental Analysis
USA - NYSE:LOW - US5486611073 - Common Stock
242.38 USD
-1.69 (-0.69%)
We assign a fundamental rating of 5 out of 10 to LOW. LOW was compared to 121 industry peers in the Specialty Retail industry. LOW scores excellent on profitability, 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. LOW also has an excellent dividend rating. These ratings would make LOW suitable 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.
LOW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LOW has a Return On Assets of 14.68%. This is amongst the best in the industry. LOW outperforms 90.08% of its industry peers.
LOW has a Return On Invested Capital of 31.40%. This is amongst the best in the industry. LOW outperforms 97.52% 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 11.81%.
| 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's Profit Margin of 8.18% is amongst the best of the industry. LOW outperforms 84.30% of its industry peers.
LOW's Profit Margin has improved in the last couple of years.
LOW has a Operating Margin of 12.35%. This is amongst the best in the industry. LOW outperforms 86.78% of its industry peers.
In the last couple of years the Operating Margin of LOW has grown nicely.
LOW has a Gross Margin (33.46%) 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 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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 Altman-Z score of 3.60. This is in the better half of the industry: LOW outperforms 79.34% of its industry peers.
The Debt to FCF ratio of LOW is 4.52, which is a neutral value as it means it would take LOW, 4.52 years of fcf income to pay off all of its debts.
LOW's Debt to FCF ratio of 4.52 is fine compared to the rest of the industry. LOW outperforms 65.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.52 | ||
| Altman-Z | 3.6 |
ROIC/WACC3.5
WACC8.98%
2.3 Liquidity
A Current Ratio of 1.05 indicates that LOW should not have too much problems paying its short term obligations.
LOW's Current ratio of 1.05 is on the low side compared to the rest of the industry. LOW is outperformed by 71.90% 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.
The Quick ratio of LOW (0.29) is worse than 79.34% of its industry peers.
| 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.
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.
LOW shows a decrease in Revenue. In the last year, the revenue decreased by -0.49%.
LOW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.01% yearly.
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.
LOW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.85% yearly.
EPS Next Y3.84%
EPS Next 2Y6.15%
EPS Next 3Y7.14%
EPS Next 5Y7.45%
Revenue Next Year1.97%
Revenue Next 2Y4.01%
Revenue Next 3Y3.86%
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
The Price/Earnings ratio is 20.08, which indicates a rather expensive current valuation of LOW.
LOW's Price/Earnings ratio is a bit cheaper when compared to the industry. LOW is cheaper than 71.90% of the companies in the same industry.
LOW is valuated rather cheaply when we compare the Price/Earnings ratio to 27.00, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.96, the valuation of LOW can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LOW indicates a somewhat cheap valuation: LOW is cheaper than 62.81% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of LOW to the average of the S&P500 Index (22.87), we can say LOW is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.08 | ||
| Fwd PE | 17.96 |
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 75.21% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.68 | ||
| EV/EBITDA | 13.43 |
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)5.23
PEG (5Y)1.26
EPS Next 2Y6.15%
EPS Next 3Y7.14%
5. Dividend
5.1 Amount
LOW has a Yearly Dividend Yield of 1.97%.
LOW's Dividend Yield is rather good when compared to the industry average which is at 5.22. LOW pays more dividend than 80.17% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, 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 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 2Y6.15%
EPS Next 3Y7.14%
NYSE:LOW (10/29/2025, 9:56:00 AM)
242.38
-1.69 (-0.69%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners79.12%
Inst Owner Change0.15%
Ins Owners0.09%
Ins Owner Change-2.66%
Market Cap135.93B
Revenue(TTM)83.61B
Net Income(TTM)6.84B
Analysts76.5
Price Target287.73 (18.71%)
Short Float %1.44%
Short Ratio2.94
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)-0.97%
EPS NY rev (1m)0%
EPS NY rev (3m)0.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.67%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.08 | ||
| Fwd PE | 17.96 | ||
| P/S | 1.63 | ||
| P/FCF | 17.68 | ||
| P/OCF | 13.84 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.43 |
EPS(TTM)12.07
EY4.98%
EPS(NY)13.5
Fwd EY5.57%
FCF(TTM)13.71
FCFY5.66%
OCF(TTM)17.51
OCFY7.22%
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
WACC8.98%
ROIC/WACC3.5
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 Y3.84%
EPS Next 2Y6.15%
EPS Next 3Y7.14%
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 2Y4.01%
Revenue Next 3Y3.86%
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 20.08 and the Price/Book (PB) ratio is -11.92.
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.