LOW Lowe's Companies, Inc. - Fundamental Analysis
NEUTRAL
Sign in to save
Save to watchlist or track a position.
LOW Stock | Fundamental Analysis & Investment Insights
NYSE
Consumer Cyclical
Home Improvement Retail
Current Price
Live
$277.55
Analyst Target
$278.12
+0.2%
Upside
52W High
$278.44
52W Low
$206.39
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 17, 2026
Market cap
$155.69B
P/E
22.98
ROE
N/A
Profit margin
8.0%
Debt/Equity
N/A
Dividend yield
1.73%
AI Analysis
AI-powered fundamental assessment
Confidence
75%
Lowe's exhibits strong financial health with a Piotroski F-Score of 7/9, indicating solid operational performance, but lacks an Altman Z-Score to assess bankruptcy risk. The stock trades at a premium valuation (P/E 22.98 vs sector avg 37.49) despite modest revenue growth (3.2%) and declining earnings (YoY -3.7%). While profitability metrics like ROA (13.18%) and gross margin (33.59%) are strong relative to peers, insider selling and weakening earnings momentum raise caution. Analysts recommend a 'buy' with a near-current target price, but technical trends and recent insider activity suggest limited near-term upside.
Key Strengths
Strong Piotroski F-Score of 7/9 indicates high financial health and stable operations
High profitability with ROA of 13.18% and gross margin of 33.59%, well above sector averages
Attractive dividend profile with 1.73% yield and sustainable 38.91% payout ratio
Valuation remains below sector average P/E of 37.49, offering relative value
Consistent history of beating earnings estimates, with 3 out of last 4 quarters above expectations
Key Risks
Missing Altman Z-Score prevents assessment of bankruptcy risk; financial distress cannot be ruled out
Negative earnings growth (YoY -3.7%, Q/Q -4.7%) indicates weakening profitability
Extremely low Quick Ratio of 0.09 signals severe short-term liquidity risk
Insider sentiment is bearish with $29.65M in net sales over last 6 months
Technical trend score of 10/100 suggests strong bearish momentum despite recent price strength
AI Fair Value Estimate
Based on comprehensive analysis
$84.56
-69.5% below current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
65
Strong
65
45
70
72
75
AI Verdict
Moderately positive with caution due to liquidity and earnings risks
Key drivers: High Piotroski F-Score supports operational strength, Profitability exceeds sector benchmarks, Dividend sustainability enhances appeal, Negative earnings growth and insider selling cap upside, Liquidity concerns from near-zero quick ratio
Confidence
78%
Value
65/100
Ref P/E, PEG, Graham Number
Positives
- P/E of 22.98 below sector average of 37.49
- Price/Sales of 1.85 is reasonable for retail
Watchpoints
- Price/Book of -15.00 invalid due to negative book value
- No Graham Number available limits value confirmation
Future
45/100
Ref Growth rates
Positives
- Revenue growth of 3.2% remains positive
Watchpoints
- Earnings growth negative YoY (-3.7%) and Q/Q (-4.7%)
- No PEG ratio due to unreliable growth expectations
Past
70/100
Ref Historical trends
Positives
- Long track record of beating earnings estimates (24 of 25 quarters positive surprises)
- Historical EPS growth of +2.3% YoY shows resilience
Watchpoints
- Most recent Q/Q EPS down -29.3%, signaling deterioration
Health
72/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Piotroski F-Score of 7/9 indicates strong financial health
- Current Ratio of 1.04 shows minimal short-term solvency
Watchpoints
- Quick Ratio of 0.09 indicates near-zero liquid assets
- No Altman Z-Score available to assess distress risk
Dividend
75/100
Ref Yield, Payout
Positives
- Dividend yield of 1.73% above market average
- Payout ratio of 38.91% is sustainable
Watchpoints
- Dividend Strength score of 40/100 suggests limited growth potential
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$277.55
Analyst Target
$278.12
Upside/Downside
+0.2%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for LOW and closest competitors.
Updated 2026-01-16
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
LOW
Lowe's Companies, Inc.
Primary
|
+77.6% | +40.6% | +9.4% | +27.9% | +11.9% | +3.9% |
|
BKNG
Booking Holdings Inc.
Peer
|
+156.7% | +115.7% | +6.6% | -9.2% | -6.4% | -0.3% |
|
TJX
The TJX Companies, Inc.
Peer
|
+152.3% | +101.2% | +31.3% | +29.6% | +1.1% | -0.3% |
|
SBUX
Starbucks Corporation
Peer
|
+1.5% | -6.3% | +1.1% | +0.5% | +9.1% | +4.6% |
|
MELI
MercadoLibre, Inc.
Peer
|
+8.5% | +93.9% | +12.9% | -14.0% | +8.3% | -4.8% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
22.98
Forward P/E
21.37
PEG Ratio
N/A
P/B Ratio
-15.0
P/S Ratio
1.85
EV/Revenue
2.37
EV/EBITDA
16.08
Market Cap
$155.69B
Profitability
Profit margins and return metrics
Profit Margin
8.04%
Operating Margin
11.92%
Gross Margin
33.59%
ROE
N/A
ROA
13.18%
Growth
Revenue and earnings growth rates
Revenue Growth
+3.2%
Earnings Growth
-3.7%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
-4.7%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
N/A
Current Ratio
1.04
Good
Quick Ratio
0.09
Poor
Cash/Share
$1.11
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-25
$N/A
2025-11-19
$3.06
+3.6% surprise
2025-08-20
$4.33
+2.2% surprise
2025-05-21
$2.92
+1.4% surprise
Consumer Cyclical Sector Comparison
Comparing LOW against 94 companies in the Consumer Cyclical sector
(6 bullish, 47 neutral, 41 bearish)
P/E Ratio
22.98
This Stock
vs
42.78
Sector Avg
-46.3%
(Discount)
Profit Margin
8.04%
This Stock
vs
0.76%
Sector Avg
+964.1%
(Superior)
Revenue Growth
3.2%
This Stock
vs
7.62%
Sector Avg
-58.0%
(Slower)
Current Ratio
1.04
This Stock
vs
1.88
Sector Avg
-44.6%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
LOW
Lowe's Companies, Inc.
|
NEUTRAL | $155.69B | 22.98 | -% | 8.0% | $277.55 | |
|
BKNG
Booking Holdings Inc.
|
NEUTRAL | $165.24B | 33.22 | -% | 19.4% | $5098.5 | |
|
TJX
The TJX Companies, Inc.
|
NEUTRAL | $175.15B | 34.74 | 58.4% | 8.7% | $157.38 | |
|
SBUX
Starbucks Corporation
|
BEARISH | $105.74B | 57.05 | -% | 5.0% | $92.99 | |
|
MELI
MercadoLibre, Inc.
|
NEUTRAL | $105.2B | 50.7 | 40.6% | 7.9% | $2075.01 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2026-01-09 | ELLISON MARVIN R | Chief Executive Officer | Sale | 18,000 | $4,701,100 |
| 2025-12-09 | GRIGGS DAN CLAYTON JR. | Officer | Gift | 148 | - |
| 2025-11-24 | SIMKINS LAWRENCE | Director | Purchase | 1,000 | $231,063 |
| 2025-09-11 | MCFARLAND JOSEPH MICHAEL III | Officer | Option Exercise | 43,810 | $4,997,407 |
| 2025-09-11 | MCFARLAND JOSEPH MICHAEL III | Officer | Sale | 43,810 | $11,942,440 |
| 2025-09-05 | SINK BRANDON J. | Chief Financial Officer | Gift | 1,333 | - |
| 2025-09-05 | SINK BRANDON J. | Chief Financial Officer | Option Exercise | 3,128 | $324,615 |
| 2025-09-05 | SINK BRANDON J. | Chief Financial Officer | Sale | 8,192 | $2,200,199 |
| 2025-08-26 | PRYOR JULIETTE WILLIAMS | Officer | Sale | 929 | $238,939 |
| 2025-08-20 | ELLISON MARVIN R | Chief Executive Officer | Sale | 40,000 | $10,564,071 |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
32 analysts
Morgan Stanley
2026-01-15
Overweight
Overweight
Gordon Haskett
2026-01-13
Hold
Buy
Barclays
2026-01-07
Equal-Weight
Overweight
Oppenheimer
2025-12-05
Outperform
Outperform
Stifel
2025-12-01
Hold
Hold
UBS
2025-11-20
Buy
Buy
JP Morgan
2025-11-20
Overweight
Overweight
Evercore ISI Group
2025-11-20
In-Line
In-Line
Truist Securities
2025-11-20
Buy
Buy
Mizuho
2025-11-20
Outperform
Outperform
Past News Coverage
Recent headlines mentioning LOW from our newsroom.
Newest → oldest
No matching news yet.