Lowe`s Cos. Inc
Exchange: NYSESector: Consumer CyclicalIndustry: Home Improvement Retail
Lowe's Companies, Inc. (Lowe's) is a home improvement retailer. As of February 3, 2012, Lowe's operated 1,745 stores, consisted of 1,712 stores across 50 United States, 31 stores in Canada and two stores in Mexico. Its 1,745 stores represent approximately 197 million square feet of retail selling space. The Company serves homeowners, renters and commercial business customers. Individual homeowners and renters complete an array of projects and vary along the spectrum of do-it-yourself (DIY) and do-it-for-me (DIFM). Commercial business customers include those who work in construction, repair/remodel, commercial and residential property management, or business maintenance professions. During the fiscal year ended February 3, 2012 (fiscal 2011), it opened 25 stores, which included the relocation of two existing stores. Seven of the stores were opened in Canada. In August 2013, the Company acquired the majority of assets of Orchard Supply Hardware, including 72 Orchard stores.
Did you know?
Net income compounded at 7.6% annually over 6 years.
Current Price
$231.03
-2.10%GoodMoat Value
$496.25
114.8% undervaluedProfile
Valuation (TTM)
Market Cap$129.60B
P/E19.47
EV$174.73B
P/B—
Shares Out560.95M
P/Sales1.50
Revenue$86.29B
EV/EBITDA13.39
Lowe`s Cos. Inc (LOW) Stock Analysis
GoodMoat Analysis
Lowe's appears to be a stable, profitable business with a moderate moat, but its current valuation offers only a marginal margin of safety. The stock passes the initial Moat & Quality Gate, but the valuation assessment is not clearly favourable. Further investigation into its competitive durability and growth drivers is warranted.
Read full analysis
Lowe's is a major home improvement retailer, operating a vast network of stores. Applying the GoodMoat framework, the company demonstrates a moderate competitive moat. It likely scores on criteria like Scale Privilege (physical store footprint), Brand & Culture (strong consumer recognition), and potentially Supply Chain Advantage. A preliminary Moat Score of 5-7 is plausible, allowing it to pass the initial Step 1 gate. Financially, it shows solid quality indicators with a 10.9% YoY revenue growth, an 11.8% operating margin, and a 5.8% Free Cash Flow Yield, suggesting adequate cash generation. The 1.99% dividend yield is a sign of shareholder returns. However, the valuation assessment is less compelling. At a P/E of 19.9x and a price of $236.18, the stock trades at a significant discount to the GoodMoat Target of $496.25, implying a potential margin of safety. Yet, this target-derived margin of safety must be critically examined against the company's growth profile and the framework's DCF bands. A 19.9x P/E for a ~11% revenue grower requires scrutiny on whether the price is truly favourable. The decision falls into the 'WITH CAUTION' category per Section 6: it passes the business gate, but the valuation is not deeply discounted, demanding a high-conviction view on sustained execution and competitive insulation in a cyclical industry. Analysis based on data as of 2024-05-15.
Market Cap$129.60B
Current Price$231.03
P/E Ratio19.47
Forward P/E—
PEG Ratio-1.70
EPS$11.85
Book Value$-17.68
P/B Ratio—
LOW Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 17.3% FCF growth (CAGR)
Cash vs Debt
Net Debt: 43.7B
Revenue
72.1B
FY20
89.6B
FY21
96.3B
FY22
97.1B
FY23
86.4B
FY24
83.7B
FY25
86.3B
FY26
Net Income
4.3B
FY20
5.8B
FY21
8.4B
FY22
6.4B
FY23
7.7B
FY24
7.0B
FY25
6.7B
FY26
LOW 52-Week Range
$207.55
$287.39
50-Day MA: $258.95200-Day MA: $245.70
Did you know?
LOW's revenue grew at a 3.0% CAGR over the last 6 years.
Lowe`s Cos. Inc (LOW) Financial Summary
Lowe`s Cos. Inc (LOW) is a Consumer Cyclical company in the Home Improvement Retail industry, listed on NYSE. The stock currently trades at $231.03 with a market capitalization of $129.60B.
Key valuation metrics include a P/E ratio of 19.47, and EPS of $11.85. The company reports a profit margin of 7.7%.
LOW Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $129.60B |
| P/E Ratio | 19.47 |
| EPS | $11.85 |
| P/S Ratio | 1.50 |
| EV/EBITDA | 13.39 |
| Dividend Yield | 2.03% |
| Profit Margin | 7.7% |
LOW Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY20 | $72.15B | $4.28B |
| FY21 | $89.60B | $5.83B |
| FY22 | $96.25B | $8.44B |
| FY23 | $97.06B | $6.44B |
| FY24 | $86.38B | $7.73B |
| FY25 | $83.67B | $6.96B |
| FY26 | $86.29B | $6.65B |
Lowe`s Cos. Inc (LOW) Valuation
Based on GoodMoat's DCF model, Lowe`s Cos. Inc has a fair value estimate of $496.25. At the current price of $231.03, the stock appears 53.4% undervalued relative to our intrinsic value estimate.
LOW Quality Indicators
Lowe`s Cos. Inc maintains a profit margin of 7.7% and an operating margin of 11.8%. The current ratio is 1.08.
About Lowe`s Cos. Inc
Lowe's Companies, Inc. (Lowe's) is a home improvement retailer. As of February 3, 2012, Lowe's operated 1,745 stores, consisted of 1,712 stores across 50 United States, 31 stores in Canada and two stores in Mexico. Its 1,745 stores represent approximately 197 million square feet of retail selling space. The Company serves homeowners, renters and commercial business customers. Individual homeowners and renters complete an array of projects and vary along the spectrum of do-it-yourself (DIY) and do-it-for-me (DIFM). Commercial business customers include those who work in construction, repair/remodel, commercial and residential property management, or business maintenance professions. During the fiscal year ended February 3, 2012 (fiscal 2011), it opened 25 stores, which included the relocation of two existing stores. Seven of the stores were opened in Canada. In August 2013, the Company acquired the majority of assets of Orchard Supply Hardware, including 72 Orchard stores.
LOW Free Cash Flow
Lowe`s Cos. Inc generated $7.73B in trailing twelve-month free cash flow, representing an FCF yield of 5.97%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
LOW Shares Outstanding
Lowe`s Cos. Inc has 0.56 billion shares outstanding at a share price of $231.03, giving it a market capitalization of $129.60B.
LOW Recent Insider Trades
Recent insider transactions at Lowe`s Cos. Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Vance Quonta D (EVP, Pro & Home Services) | SELL | 10,369 | $2.67M |
| Ellison Marvin R (Chairman, President & CEO) | SELL | 7,153 | $1.86M |