LOWE'S COS INC (LOW) Stock Fundamental Analysis

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

274.68 USD
-3.7 (-1.33%)
Last: Feb 9, 2026, 09:56 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

Taking everything into account, LOW scores 6 out of 10 in our fundamental rating. LOW was compared to 120 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.
  • In the past year LOW had a positive cash flow from operations.
  • 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 88.33% of its industry peers.
  • With an excellent Return On Invested Capital value of 22.95%, LOW belongs to the best of the industry, outperforming 89.17% 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 12.16%.
  • The 3 year average ROIC (32.20%) for LOW is well above the current ROIC(22.95%). The reason for the recent decline needs to be investigated.
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

  • LOW has a better Profit Margin (8.02%) than 85.00% of its industry peers.
  • In the last couple of years the Profit Margin of LOW has grown nicely.
  • LOW's Operating Margin of 12.19% is amongst the best of the industry. LOW outperforms 86.67% of its industry peers.
  • LOW's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 33.59%, LOW is in line with its industry, outperforming 41.67% 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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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LOW is creating value.
  • Compared to 1 year ago, LOW has less shares outstanding
  • Compared to 5 years ago, LOW has less shares outstanding
  • LOW has a better debt/assets ratio than last year.
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

  • LOW has an Altman-Z score of 3.40. This indicates that LOW is financially healthy and has little risk of bankruptcy at the moment.
  • LOW has a Altman-Z score of 3.40. This is in the better half of the industry: LOW outperforms 76.67% of its industry peers.
  • LOW has a debt to FCF ratio of 5.66. This is a neutral value as LOW would need 5.66 years to pay back of all of its debts.
  • With a decent Debt to FCF ratio value of 5.66, LOW is doing good in the industry, outperforming 65.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5.66
Altman-Z 3.4
ROIC/WACC2.47
WACC9.29%
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

  • A Current Ratio of 1.04 indicates that LOW should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.04, LOW is not doing good in the industry: 72.50% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.16 indicates that LOW may have some problems paying its short term obligations.
  • LOW has a worse Quick ratio (0.16) than 91.67% 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • The Earnings Per Share has been growing slightly by 3.55% over the past year.
  • LOW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.93% yearly.
  • The Revenue has been growing slightly by 0.64% in the past year.
  • LOW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.01% yearly.
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

  • LOW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.26% yearly.
  • Based on estimates for the next years, LOW will show a small growth in Revenue. The Revenue will grow by 4.00% on average per year.
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

  • 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 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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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 22.44, 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 72.50% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.93. LOW is around the same levels.
  • With a Price/Forward Earnings ratio of 21.00, LOW is valued on the expensive side.
  • 63.33% of the companies in the same industry are more expensive than LOW, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 27.77. LOW is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 22.44
Fwd PE 21
LOW Price Earnings VS Forward Price EarningsLOW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LOW is on the same level as its industry peers.
  • LOW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LOW is cheaper than 67.50% of the companies in the same industry.
Industry RankSector Rank
P/FCF 21.86
EV/EBITDA 15.77
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)6.66
PEG (5Y)1.41
EPS Next 2Y4.49%
EPS Next 3Y5.79%

More info and screens

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

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.
  • Compared to an average industry Dividend Yield of 2.26, LOW pays a bit more dividend than its industry peers.
  • LOW's Dividend Yield is comparable with the S&P500 average which is at 1.81.
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

  • 38.65% 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.
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

More info and screens

Find the best dividend stocksShow peers with best dividend

LOWE'S COS INC

NYSE:LOW (2/9/2026, 9:56:08 AM)

274.68

-3.7 (-1.33%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)11-19
Earnings (Next)05-19
Inst Owners80.03%
Inst Owner Change-2.16%
Ins Owners0.09%
Ins Owner Change-3.19%
Market Cap154.08B
Revenue(TTM)84.26B
Net Income(TTM)6.76B
Analysts77
Price Target286.18 (4.19%)
Short Float %1.9%
Short Ratio3.49
Dividend
Industry RankSector Rank
Dividend Yield 1.75%
Yearly Dividend4.53
Dividend Growth(5Y)16.94%
DP38.65%
Div Incr Years34
Div Non Decr Years34
Ex-Date01-21
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.59%
Min EPS beat(2)1.03%
Max EPS beat(2)2.14%
EPS beat(4)4
Avg EPS beat(4)1.86%
Min EPS beat(4)0.49%
Max EPS beat(4)3.78%
EPS beat(8)8
Avg EPS beat(8)2.34%
EPS beat(12)11
Avg EPS beat(12)2.25%
EPS beat(16)15
Avg EPS beat(16)2.7%
Revenue beat(2)0
Avg Revenue beat(2)-1.01%
Min Revenue beat(2)-1.01%
Max Revenue beat(2)-1.01%
Revenue beat(4)1
Avg Revenue beat(4)-0.67%
Min Revenue beat(4)-1.02%
Max Revenue beat(4)0.35%
Revenue beat(8)3
Avg Revenue beat(8)-0.61%
Revenue beat(12)4
Avg Revenue beat(12)-0.72%
Revenue beat(16)6
Avg Revenue beat(16)-0.73%
PT rev (1m)2.91%
PT rev (3m)-0.59%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-6.2%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.12%
Valuation
Industry RankSector Rank
PE 22.44
Fwd PE 21
P/S 1.83
P/FCF 21.86
P/OCF 16.73
P/B N/A
P/tB N/A
EV/EBITDA 15.77
EPS(TTM)12.24
EY4.46%
EPS(NY)13.08
Fwd EY4.76%
FCF(TTM)12.57
FCFY4.58%
OCF(TTM)16.42
OCFY5.98%
SpS150.2
BVpS-18.51
TBVpS-36.29
PEG (NY)6.66
PEG (5Y)1.41
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 12.65%
ROE N/A
ROCE 30.22%
ROIC 22.95%
ROICexc 23.67%
ROICexgc 33.95%
OM 12.19%
PM (TTM) 8.02%
GM 33.59%
FCFM 8.37%
ROA(3y)16.41%
ROA(5y)16.1%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)32.2%
ROIC(5y)32.68%
ROICexc(3y)34.56%
ROICexc(5y)35.64%
ROICexgc(3y)34.87%
ROICexgc(5y)36.2%
ROCE(3y)42.67%
ROCE(5y)43.19%
ROICexgc growth 3Y-4.55%
ROICexgc growth 5Y12.84%
ROICexc growth 3Y-3.41%
ROICexc growth 5Y13.11%
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%
F-Score6
Asset Turnover1.58
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5.66
Debt/EBITDA 3.04
Cap/Depr 104.35%
Cap/Sales 2.56%
Interest Coverage 250
Cash Conversion 74.61%
Profit Quality 104.28%
Current Ratio 1.04
Quick Ratio 0.16
Altman-Z 3.4
F-Score6
WACC9.29%
ROIC/WACC2.47
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)3.55%
EPS 3Y0.03%
EPS 5Y15.93%
EPS Q2Q%5.88%
EPS Next Y3.37%
EPS Next 2Y4.49%
EPS Next 3Y5.79%
EPS Next 5Y7.26%
Revenue 1Y (TTM)0.64%
Revenue growth 3Y-4.56%
Revenue growth 5Y3.01%
Sales Q2Q%3.19%
Revenue Next Year3.17%
Revenue Next 2Y5.65%
Revenue Next 3Y4.94%
Revenue Next 5Y4%
EBIT growth 1Y0.28%
EBIT growth 3Y-5.66%
EBIT growth 5Y10.02%
EBIT Next Year20.15%
EBIT Next 3Y10.52%
EBIT Next 5Y7.61%
FCF growth 1Y30.56%
FCF growth 3Y-2.32%
FCF growth 5Y22.21%
OCF growth 1Y23.05%
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.


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%.