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
Trailing Returns
Performance at a Glance
| Metric | Current stock: LOW | Industry group median |
|---|---|---|
| 1-Year Return | 0.73% | 4.16% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: LOW | Industry group median |
|---|---|---|
| 1-Year Volatility | 26.20% | 47.42% |
| Beta | 0.85 | 1.12 |
Company Profile
| Profile Item | LOW |
|---|---|
| Name | Lowe's Companies Inc. |
| Country/Region | United States |
| GICS Sector | Consumer Discretionary |
| GICS Industry Group | Consumer Discretionary Distribution & Retail |
| GICS Industry | Specialty Retail |
| GICS Sub-Industry | Home Improvement Retail |
| Market Capitalization | 123.79 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | March 17, 1980 |
| Security Type | Common 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
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
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
Valuation at a Glance
| Metric | Current stock: LOW | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 18.66 | 20.61 |
| Price-to-Sales Ratio (TTM) | 1.40 | 0.73 |
| Price-to-Book Ratio (MRQ) | -13.36 | 2.24 |
| Free Cash Flow Yield | 3.89% | 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
- --
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%
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%
Profitability at a Glance
| Metric | Current stock: LOW | Industry 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
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
- --
Financial Strength at a Glance
| Metric | Current stock: LOW | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.09 | 1.38 |
| Debt-to-Equity Ratio (MRQ) | -- | 1.09 |
| Net Debt / EBITDA | 3.32 | 2.42 |
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%
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%
Dividends at a Glance
| Metric | Current stock: LOW | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 2.26% | 0.00% |
| Dividend Payout Ratio (TTM) | 40.57% | 0.00% |