LOW Lowe's Companies, Inc. - Fundamental Analysis
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Key Strengths
Key Risks
Performance Snowflake
Multi-dimensional analysis across 5 key categories
LOW is dramatically cheaper than the Consumer Cyclical sector on earnings and sales multiples, but the negative book value raises structural balance sheet questions not seen in peers like NKE or LULU.
- P/E of 18.69 is significantly below sector average of 68.68, suggesting undervaluation
- Price/Sales of 1.55 is reasonable for a mature retailer with stable margins
- Negative Price/Book ratio (-11.21) distorts traditional value metrics
- Lack of EV/EBITDA and PEG data limits forward-looking valuation precision
Despite a strong quarterly EPS jump, the lack of sustained revenue acceleration and ongoing consumer pressure in the housing market suggest limited near-term growth catalysts, especially compared to higher-growth peers like XPEV or even BKNG.
- Forward P/E of 18.04 implies stable earnings expectations
- Recent Q/Q EPS growth of +48.3% (though likely seasonal or tax-adjusted) shows capacity for leverage
- Revenue growth of only 1.6% YoY signals weak demand trends in home improvement
- No clear inflection in price momentum: 1Y return of -14.0% and declining 50D/200D trends (unavailable but implied)
Lowe's has demonstrated exceptional earnings consistency and margin discipline over the past five years, but recent share price underperformance reflects growing investor skepticism about its ability to sustain momentum in a higher-rate environment.
- Long track record of beating earnings estimates: 22 out of 25 quarters positive surprises
- Stable and high profitability: Gross margin of 33.46%, operating margin of 14.48% maintained over multiple cycles
- Earnings growth deceleration: YoY EPS growth of 5.6% is modest despite easy comps
- 5Y return of +54.3% masks recent weakness, with 1Y return at -14.0%
While Lowe's generates strong returns on assets, its minimal liquidity ratios raise red flags about near-term financial flexibility compared to peers like LULU (Debt/Equity 0.40) and NKE (0.82), especially in a downturn.
- ROA of 14.29% indicates efficient asset utilization
- No reported debt/equity or cash/debt figures, but dividend sustainability suggests manageable leverage
- Quick ratio of 0.24 indicates severe short-term liquidity constraint
- Current ratio of 1.05 leaves minimal buffer for working capital shocks
Lowe's offers a reliable and well-covered dividend that enhances total return potential, particularly appealing in a sector where many peers (e.g., XPEV) do not pay dividends at all.
- 2.11% dividend yield is attractive in current rate environment
- 38.15% payout ratio indicates strong earnings coverage and room for future increases
- Lack of 5-year average yield data limits visibility into policy consistency
- No ex-dividend date provided, reducing transparency for income investors
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for LOW and closest competitors.
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
LOW
Lowe's Companies, Inc.
Primary
|
+54.3% | +15.8% | -14.0% | -1.7% | -5.2% | -2.3% |
|
BKNG
Booking Holdings Inc.
Peer
|
+142.7% | +155.8% | +2.3% | -4.7% | -0.7% | +2.2% |
|
NKE
NIKE, Inc.
Peer
|
-47.3% | -36.8% | -13.3% | +2.9% | -6.3% | +5.0% |
|
ORLY
O'Reilly Automotive, Inc.
Peer
|
+221.3% | +79.6% | +21.0% | +7.3% | -3.2% | +1.8% |
|
MAR
Marriott International, Inc.
Peer
|
+138.8% | +82.0% | +2.3% | +5.1% | +7.3% | -1.9% |
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
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability
Profit margins and return metrics
Growth
Revenue and earnings growth rates
Financial Health
Balance sheet strength and liquidity metrics
Quarterly Earnings History
EPS performance vs analyst estimates
Consumer Cyclical Sector Comparison
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 | $129.81B | 18.69 | -% | 8.2% | $227.85 | |
|
BKNG
Booking Holdings Inc.
|
NEUTRAL | $162.72B | 32.82 | -% | 19.4% | $5048.01 | |
|
NKE
NIKE, Inc.
|
NEUTRAL | $94.86B | 32.91 | 21.1% | 6.2% | $64.17 | |
|
ORLY
O'Reilly Automotive, Inc.
|
BULLISH | $83.4B | 34.31 | -% | 14.2% | $98.8 | |
|
MAR
Marriott International, Inc.
|
NEUTRAL | $77.13B | 30.11 | -% | 38.0% | $285.72 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 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 | Option Exercise | 3,128 | $324,615 |
| 2025-09-05 | SINK BRANDON J. | Chief Financial Officer | Sale | 8,192 | $2,200,199 |
| 2025-09-05 | SINK BRANDON J. | Chief Financial Officer | Gift | 1,333 | - |
| 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 |
| 2025-06-11 | DUPRE JANICE M. | Officer | Gift | 900 | - |
| 2025-06-10 | DUPRE JANICE M. | Officer | Sale | 1,560 | $350,039 |
| 2025-06-03 | PRYOR JULIETTE WILLIAMS | Officer | Sale | 1,130 | $257,077 |
| 2025-06-03 | PRYOR JULIETTE WILLIAMS | Officer | Gift | 870 | - |
Wall Street Analysts
Professional analyst ratings and price targets