(LOW) Lowe's Companies - Overview
Sector: Consumer Cyclical | Industry: Home Improvement Retail | Exchange: NYSE (USA) | Market Cap: 120.632m USD | Total Return: -2.9% in 12m
Avg Turnover: 686M
EPS Trend: -65.3%
Qual. Beats: 0
Rev. Trend: -45.7%
Qual. Beats: 2
Warnings
Beneish M-Score 1.00 > -1.5 - likely earnings manipulation
Altman Z'' 0.85 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
No distinct edge detected
Lowe’s Companies, Inc. is a major home improvement retailer operating across the United States and Canada. The company distributes a diverse range of inventory including lumber, building materials, appliances, and tools to a customer base comprised of individual homeowners, renters, and professional contractors. Its business model integrates retail sales with value-added services such as professional installation through independent contractors and extended protection plans.
The home improvement sector is characterized by a dual-customer focus, where Pro customers typically provide more recurring revenue and higher transaction values than DIY consumers. Lowe’s utilizes an omni-channel strategy, fulfilling orders through physical retail locations, outlet stores, and digital platforms. For a deeper look into these performance metrics, ValueRay offers additional data points. Founded in 1921 and headquartered in North Carolina, the company maintains an extensive supply chain to support its design and distribution services for large-scale property managers and home builders.
- Mortgage rate fluctuations directly impact existing home turnover and renovation demand
- Growth in Professional customer segment share improves recurring revenue and margins
- High sensitivity to consumer discretionary spending levels on big-ticket appliance categories
- Commodity price volatility in lumber and building materials affects gross margins
- Strategic expansion of installation services offsets slowing DIY retail product sales turnover
| Net Income: 6.64b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.14 > 0.02 and ΔFCF/TA -0.85 > 1.0 |
| NWC/Revenue: 2.13% < 20% (prev 0.34%; Δ 1.79% < -1%) |
| CFO/TA 0.18 > 3% & CFO 9.84b > Net Income 6.64b |
| Net Debt (46.1b) to EBITDA (12.2b): 3.79 < 3 |
| Current Ratio: 1.09 > 1.5 & < 3 |
| Outstanding Shares: last quarter (560.0m) vs 12m ago 0.0% < -2% |
| Gross Margin: 33.80% > 18% (prev 0.31%; Δ 3.35k% > 0.5%) |
| Asset Turnover: 176.3% > 50% (prev 183.5%; Δ -7.14% > 0%) |
| Interest Coverage Ratio: 6.60 > 6 (EBITDA TTM 12.2b / Interest Expense TTM 1.55b) |
| A: 0.03 (Total Current Assets 22.2b - Total Current Liabilities 20.3b) / Total Assets 54.9b |
| B: -0.18 (Retained Earnings -9.88b / Total Assets 54.9b) |
| C: 0.20 (EBIT TTM 10.2b / Avg Total Assets 50.2b) |
| D: -0.15 (Book Value of Equity -9.34b / Total Liabilities 64.2b) |
| Altman-Z'' = 0.85 = B |
| DSRI: 11.53 (Receivables 1.15b/94.0m, Revenue 88.4b/83.2b) |
| GMI: 0.93 (GM 33.80% / 31.27%) |
| AQI: 6.77 (AQ_t 0.19 / AQ_t-1 0.03) |
| SGI: 1.06 (Revenue 88.4b / 83.2b) |
| TATA: -0.06 (NI 6.64b - CFO 9.84b) / TA 54.9b) |
| Beneish M = 8.97 (Cap -4..+1) = D |
As of May 26, 2026, the stock is trading at USD 215.03 with a total of 2,801,300 shares traded.
Over the past week, the price has changed by -1.55%,
over one month by -11.35%,
over three months by -17.85% and
over the past year by -2.90%.
Lowe's Companies has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy LOW.
- StrongBuy: 18
- Buy: 4
- Hold: 13
- Sell: 1
- StrongSell: 1
| Analysts Target Price | 263.3 | 22.4% |
P/E Trailing = 18.1767
P/E Forward = 17.1233
P/S = 1.3641
P/B = 321.8177
P/EG = 1.4033
Revenue TTM = 88.4b USD
EBIT TTM = 10.2b USD
EBITDA TTM = 12.2b USD
Long Term Debt = 37.5b USD (from longTermDebt, last fiscal year)
Short Term Debt = 1.85b USD (from shortTermDebt, last quarter)
Debt = 47.3b USD (from shortLongTermDebtTotal, last quarter) + Leases 4.76b
Net Debt = 46.1b USD (calculated: Debt 47.3b - CCE 1.24b)
Enterprise Value = 167b USD (121b + Debt 47.3b - CCE 1.24b)
Interest Coverage Ratio = 6.60 (Ebit TTM 10.2b / Interest Expense TTM 1.55b)
EV/FCF = 21.88x (Enterprise Value 167b / FCF TTM 7.62b)
FCF Yield = 4.57% (FCF TTM 7.62b / Enterprise Value 167b)
FCF Margin = 8.62% (FCF TTM 7.62b / Revenue TTM 88.4b)
Net Margin = 7.51% (Net Income TTM 6.64b / Revenue TTM 88.4b)
Gross Margin = 33.80% ((Revenue TTM 88.4b - Cost of Revenue TTM 58.5b) / Revenue TTM)
Gross Margin QoQ = 32.68% (prev 39.16%)
Tobins Q-Ratio = 3.03 (Enterprise Value 167b / Total Assets 54.9b)
Interest Expense / Debt = 3.27% (Interest Expense 1.55b / Debt 47.3b)
Taxrate = 24.45% (527.0m / 2.15b)
NOPAT = 7.72b (EBIT 10.2b * (1 - 24.45%))
Current Ratio = 1.09 (Total Current Assets 22.2b / Total Current Liabilities 20.3b)
Debt / Equity = -5.10 (negative equity) (Debt 47.3b / totalStockholderEquity, last quarter -9.27b)
Debt / EBITDA = 3.79 (Net Debt 46.1b / EBITDA 12.2b)
Debt / FCF = 6.04 (Net Debt 46.1b / FCF TTM 7.62b)
Total Stockholder Equity = -10.2b (last 4 quarters mean from totalStockholderEquity)
RoA = 13.24% (Net Income 6.64b / Total Assets 54.9b)
RoE = -1.85k% (out of range, set to none) (Net Income TTM 6.64b / Total Stockholder Equity -358.2m)
RoCE = 27.50% (EBIT 10.2b / Capital Employed (Equity -358.2m + L.T.Debt 37.5b))
RoIC = 21.16% (NOPAT 7.72b / Invested Capital 36.5b)
WACC = 7.00% (E(121b)/V(168b) * Re(8.77%) + D(47.3b)/V(168b) * Rd(3.27%) * (1-Tc(0.24)))
Discount Rate = 8.77% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -88.19 | Cagr: -1.17%
[DCF] Terminal Value 77.83% ; FCFF base≈7.24b ; Y1≈8.24b ; Y5≈11.9b
[DCF] Fair Price = 237.2 (EV 179b - Net Debt 46.1b = Equity 133b / Shares 561.0m; r=8.35% [WACC [floored]]; 5y FCF grow 14.07% → 2.50% )
EPS Correlation: -65.32 | EPS CAGR: -3.69% | SUE: -0.32 | # QB: 0
Revenue Correlation: -45.65 | Revenue CAGR: -1.79% | SUE: 0.93 | # QB: 2
EPS current Quarter (2026-07-31): EPS=4.25 | Chg30d=-3.94% | Revisions=-14% | Analysts=27
EPS next Quarter (2026-10-31): EPS=3.15 | Chg30d=-0.71% | Revisions=-20% | Analysts=27
EPS current Year (2027-01-31): EPS=12.50 | Chg30d=-0.82% | Revisions=+20% | GrowthEPS=+1.8% | GrowthRev=+7.7%
EPS next Year (2028-01-31): EPS=13.47 | Chg30d=-1.37% | Revisions=+25% | GrowthEPS=+7.8% | GrowthRev=+3.1%
[Analyst] Revisions Ratio: +25%