Seek Returns

Lowe's Companies (LOW) Stock Analysis

Here is a fundamental analysis of Lowe's Companies (LOW), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.

Performance

Cumulative Growth

LOW
GSPC
Loading price history…
Lowe's Companies (LOW) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

Loading price history…
Trailing total returns for Lowe's Companies (LOW) and S&P 500 (GSPC). Returns over one year are annualized.

Performance at a Glance

Lowe's Companies (LOW) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
MetricCurrent stock: LOWIndustry group median
1-Year Return0.73%4.16%

Risk

Drawdown

LOW
GSPC
Loading price history…
Lowe's Companies (LOW) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

Lowe's Companies (LOW) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
MetricCurrent stock: LOWIndustry group median
1-Year Volatility26.20%47.42%
Beta0.851.12

Company Profile

Company profile fields for Lowe's Companies (LOW)
Profile ItemLOW
NameLowe's Companies Inc.
Country/RegionUnited States
GICS SectorConsumer Discretionary
GICS Industry GroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
GICS Sub-IndustryHome Improvement Retail
Market Capitalization123.79 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateMarch 17, 1980
Security TypeCommon Stock

Valuation

Price-to-Earnings Ratio (TTM)

Lowe's Companies (LOW) trades at P/E ratio of 18.66, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

LOW

Consumer Discretionary Distribution & Retail industry group

18.66

Group distribution
Max
54.29
Q3
31.64
Median
20.61
LOW
18.66
Q1
12.78
Min
1.13
Largest peers
MELI
42.01
TJX
32.76
AMZN
31.64
HD
23.31
LOW
18.66
BABA
17.36
PDD
8.55
Loading chart…
Where Lowe's Companies (LOW) stands on P/E ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Sales Ratio (TTM)

Lowe's Companies (LOW) trades at 1.40 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

LOW

Consumer Discretionary Distribution & Retail industry group

1.40

Group distribution
Max
3.65
Q3
1.78
LOW
1.40
Median
0.73
Q1
0.28
Min
0.03
Largest peers
AMZN
3.45
TJX
3.02
MELI
2.53
HD
1.97
LOW
1.40
BABA
0.26
PDD
0.26
Loading chart…
Where Lowe's Companies (LOW) stands on P/S ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Book Ratio (MRQ)

Lowe's Companies (LOW) has negative P/B ratio of -13.36, which means reported book equity is negative. Price-to-book breaks down in this situation and should not be used as a valuation signal.

LOW

Consumer Discretionary Distribution & Retail industry group

-13.36

Group distribution
Max
11.07
Q3
5.11
Median
2.24
Q1
1.05
Min
-3.64
LOW
-13.36
Largest peers
HD
23.60
TJX
18.30
MELI
11.07
AMZN
5.81
PDD
1.83
BABA
1.67
LOW
-13.36
Loading chart…
Where Lowe's Companies (LOW) stands on P/B ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Valuation at a Glance

Lowe's Companies (LOW) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
MetricCurrent stock: LOWIndustry group median
Price-to-Earnings Ratio (TTM)18.6620.61
Price-to-Sales Ratio (TTM)1.400.73
Price-to-Book Ratio (MRQ)-13.362.24
Free Cash Flow Yield3.89%3.39%

Profitability

Return on Equity (TTM)

No usable ROE is available for Lowe's Companies (LOW) this period, so the shareholder-equity return read is skipped.

LOW

Consumer Discretionary Distribution & Retail industry group

--

Group distribution
Max
63.82%
Q3
31.67%
Median
12.96%
Q1
4.89%
Min
-29.94%
LOW
--
Largest peers
HD
128.38%
TJX
61.25%
MELI
31.26%
PDD
25.40%
AMZN
24.29%
BABA
9.22%
LOW
--
Loading chart…
Lowe's Companies (LOW) doesn’t report ROE this period; the box shows the Consumer Discretionary Distribution & Retail group’s distribution and the dots its largest members.

Net Profit Margin (TTM)

Lowe's Companies (LOW) keeps 7.51% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

LOW

Consumer Discretionary Distribution & Retail industry group

7.51%

Group distribution
Max
20.45%
Q3
8.75%
LOW
7.51%
Median
3.25%
Q1
0.49%
Min
-11.15%
Largest peers
PDD
21.62%
AMZN
12.22%
BABA
10.12%
TJX
9.40%
HD
8.41%
LOW
7.51%
MELI
6.04%
Loading chart…
Where Lowe's Companies (LOW) stands on net margin within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Operating Profit Margin (TTM)

Lowe's Companies (LOW) turns 11.07% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

LOW

Consumer Discretionary Distribution & Retail industry group

11.07%

Group distribution
Max
23.15%
Q3
11.08%
LOW
11.07%
Median
4.61%
Q1
1.68%
Min
-8.71%
Largest peers
PDD
18.42%
AMZN
13.14%
HD
11.93%
TJX
11.77%
LOW
11.07%
MELI
6.91%
BABA
1.02%
Loading chart…
Where Lowe's Companies (LOW) stands on operating margin within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Profitability at a Glance

Lowe's Companies (LOW) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
MetricCurrent stock: LOWIndustry group median
Return on Equity (TTM)--12.96%
Return on Assets (TTM)12.79%5.45%
Net Profit Margin (TTM)7.51%3.25%
Operating Profit Margin (TTM)11.07%4.61%
Gross Profit Margin (TTM)33.29%38.72%

Financial Strength

Current Ratio (MRQ)

Lowe's Companies (LOW) has current ratio of 1.09, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

LOW

Consumer Discretionary Distribution & Retail industry group

1.09

Group distribution
Max
2.97
Q3
1.87
Median
1.38
LOW
1.09
Q1
1.03
Min
0.46
Largest peers
PDD
2.54
BABA
1.28
AMZN
1.18
MELI
1.16
TJX
1.14
LOW
1.09
HD
1.05
Loading chart…
Where Lowe's Companies (LOW) stands on current ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Debt-to-Equity Ratio (MRQ)

No usable debt-to-equity ratio is available for Lowe's Companies (LOW) this period, so the balance-sheet leverage read is skipped.

LOW

Consumer Discretionary Distribution & Retail industry group

--

Group distribution
Max
3.27
Q3
1.82
Median
1.09
Q1
0.67
Min
0.01
LOW
--
Largest peers
HD
4.59
MELI
1.70
TJX
1.36
AMZN
0.53
BABA
0.25
PDD
0.01
LOW
--
Loading chart…
Lowe's Companies (LOW) doesn’t report debt-to-equity ratio this period; the box shows the Consumer Discretionary Distribution & Retail group’s distribution and the dots its largest members.

Financial Strength at a Glance

Lowe's Companies (LOW) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
MetricCurrent stock: LOWIndustry group median
Current Ratio (MRQ)1.091.38
Debt-to-Equity Ratio (MRQ)--1.09
Net Debt / EBITDA3.322.42

Dividends

Dividend Yield (TTM)

Lowe's Companies (LOW) has dividend yield of 2.26%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

LOW

Consumer Discretionary Distribution & Retail industry group

2.26%

Group distribution
Max
6.62%
Q3
2.66%
LOW
2.26%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
HD
2.84%
LOW
2.26%
TJX
1.14%
BABA
0.93%
AMZN
0.00%
PDD
0.00%
MELI
0.00%
Loading chart…
Where Lowe's Companies (LOW) stands on dividend yield within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Lowe's Companies (LOW) has payout ratio of 40.57%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

LOW

Consumer Discretionary Distribution & Retail industry group

40.57%

Group distribution
Max
78.51%
LOW
40.57%
Q3
33.46%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
HD
65.55%
LOW
40.57%
TJX
33.07%
BABA
17.12%
AMZN
0.00%
PDD
0.00%
MELI
0.00%
Loading chart…
Where Lowe's Companies (LOW) stands on payout ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Dividends at a Glance

Lowe's Companies (LOW) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
MetricCurrent stock: LOWIndustry group median
Dividend Yield (TTM)2.26%0.00%
Dividend Payout Ratio (TTM)40.57%0.00%