Lowe's Companies (LOW) Stock Analysis
This is a peer-relative look at Lowe's Companies (LOW): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Consumer Discretionary Distribution & Retail peers, so every number reads in context rather than in isolation.
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 | 114.71 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | March 17, 1980 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: LOW | Industry group median |
|---|---|---|
| Total Return (1Y) | -21.14% | -10.83% |
| Total Return (3Y, Annualized) | -2.26% | 3.54% |
| Total Return (5Y, Annualized) | 1.80% | -2.26% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: LOW | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 27.12% | 47.66% |
| Beta (5Y) | 0.87 | 1.13 |
| Max Drawdown (5Y) | -33.86% | -69.34% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: LOW | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | -0.93 | -0.31 |
| Sortino Ratio (1Y) | -1.33 | -0.46 |
Profitability
ROE (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
- 32.42%
- Median
- 14.20%
- Q1
- 5.73%
- Min
- -27.22%
- LOW
- --
Largest peers
- HD
- 104.30%
- TJX
- 62.17%
- AMZN
- 30.56%
- MELI
- 27.50%
- PDD
- 22.75%
- BABA
- 6.36%
- LOW
- --
Net Margin (TTM)
Lowe's Companies (LOW) keeps 7.35% 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
7.35%
Group distribution
- Max
- 20.45%
- Q3
- 9.06%
- LOW
- 7.35%
- Median
- 3.37%
- Q1
- 0.86%
- Min
- -10.82%
Largest peers
- PDD
- 20.43%
- AMZN
- 17.44%
- TJX
- 9.73%
- HD
- 8.41%
- LOW
- 7.35%
- BABA
- 7.04%
- MELI
- 5.30%
Operating Margin (TTM)
Lowe's Companies (LOW) turns 13.37% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.
LOW
Consumer Discretionary Distribution & Retail industry group
13.37%
Group distribution
- Max
- 24.71%
- LOW
- 13.37%
- Q3
- 11.23%
- Median
- 5.44%
- Q1
- 2.16%
- Min
- -7.86%
Largest peers
- PDD
- 24.71%
- AMZN
- 13.69%
- LOW
- 13.37%
- HD
- 12.86%
- TJX
- 10.91%
- BABA
- 7.30%
- MELI
- 6.72%
Profitability Metrics
| Metric | Current stock: LOW | Industry group median |
|---|---|---|
| ROE (TTM) | -- | 14.20% |
| ROA (TTM) | 12.52% | 5.37% |
| Net Margin (TTM) | 7.35% | 3.37% |
| Operating Margin (TTM) | 13.37% | 5.44% |
| Gross Margin (TTM) | 32.99% | 38.28% |
Growth
Revenue Growth
Lowe's Companies (LOW) grew revenue 3.12%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.
EPS Growth
Lowe's Companies (LOW) grew earnings per share -3.11%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.
Growth Metrics
| Metric | Current stock: LOW | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 3.12% | 5.12% |
| Revenue Growth (3Y CAGR) | -3.85% | 3.00% |
| EPS Growth (YoY) | -3.11% | 0.00% |
| EPS Growth (3Y CAGR) | 5.23% | -4.99% |
Financial Strength
Current Ratio (MRQ)
Lowe's Companies (LOW) has current ratio of 1.11, 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
1.11
Group distribution
- Max
- 3.13
- Q3
- 1.88
- Median
- 1.41
- LOW
- 1.11
- Q1
- 1.03
- Min
- 0.49
Largest peers
- PDD
- 2.62
- BABA
- 1.36
- TJX
- 1.15
- MELI
- 1.12
- LOW
- 1.11
- HD
- 1.08
- AMZN
- 1.03
Debt / Equity (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
- 3.39
- Q3
- 1.76
- Median
- 1.08
- Q1
- 0.66
- Min
- 0.01
- LOW
- --
Largest peers
- HD
- 3.80
- MELI
- 1.69
- TJX
- 1.34
- AMZN
- 0.46
- BABA
- 0.24
- PDD
- 0.01
- LOW
- --
Financial Strength Metrics
| Metric | Current stock: LOW | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.11 | 1.41 |
| Debt / Equity (MRQ) | -- | 1.08 |
| Net Debt / EBITDA | 3.05 | 2.49 |
Dividends
Dividend Yield (TTM)
Lowe's Companies (LOW) has dividend yield of 2.40%, 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
2.40%
Group distribution
- Max
- 4.87%
- Q3
- 2.44%
- LOW
- 2.40%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- BABA
- 6.48%
- LOW
- 2.40%
- HD
- 1.46%
- TJX
- 1.37%
- AMZN
- 0.00%
- PDD
- 0.00%
- MELI
- 0.00%
Dividend Payout Ratio (TTM)
Lowe's Companies (LOW) has payout ratio of 41.00%, 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
41.00%
Group distribution
- Max
- 67.85%
- LOW
- 41.00%
- Q3
- 31.80%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- HD
- 64.80%
- LOW
- 41.00%
- TJX
- 32.50%
- BABA
- 24.04%
- AMZN
- 0.00%
- PDD
- 0.00%
- MELI
- 0.00%
Dividend Metrics
| Metric | Current stock: LOW | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 2.40% | 0.00% |
| Dividend Payout Ratio (TTM) | 41.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Lowe's Companies (LOW) trades at P/E ratio of 17.27, 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
17.27
Group distribution
- Max
- 43.60
- Q3
- 25.79
- Median
- 17.46
- LOW
- 17.27
- Q1
- 12.45
- Min
- 0.95
Largest peers
- MELI
- 53.76
- BABA
- 25.62
- TJX
- 24.46
- HD
- 22.47
- AMZN
- 20.80
- LOW
- 17.27
- PDD
- 8.87
P/S Ratio (TTM)
Lowe's Companies (LOW) trades at 1.27 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
1.27
Group distribution
- Max
- 3.35
- Q3
- 1.59
- LOW
- 1.27
- Median
- 0.73
- Q1
- 0.28
- Min
- 0.03
Largest peers
- AMZN
- 3.59
- MELI
- 2.85
- TJX
- 2.34
- HD
- 1.89
- LOW
- 1.27
- BABA
- 0.27
- PDD
- 0.26
P/B Ratio (MRQ)
Lowe's Companies (LOW) has negative P/B ratio of -15.42, 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
-15.42
Group distribution
- Max
- 9.86
- Q3
- 4.94
- Median
- 1.88
- Q1
- 1.17
- Min
- -3.73
- LOW
- -15.42
Largest peers
- HD
- 19.28
- TJX
- 14.03
- MELI
- 12.80
- AMZN
- 5.05
- PDD
- 1.74
- BABA
- 1.69
- LOW
- -15.42
Valuation Metrics
| Metric | Current stock: LOW | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 17.27 | 17.46 |
| P/S Ratio (TTM) | 1.27 | 0.73 |
| P/B Ratio (MRQ) | -15.42 | 1.88 |
| Free Cash Flow Yield (TTM) | 4.02% | 3.43% |