About Lowe's Companies, Inc.
Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States and Canada. It provides a line of products for construction, maintenance, repair, remodeling, and decorating. The company also offers home improvement products, such as appliances, seasonal and outdoor living, lumber, lawn and garden, kitchens and bath, hardware, building materials, millwork, paint, rough plumbing, tools, electrical, flooring, and décor. In addition, it provides installation services through independent contractors in various product categories; and extended protection plans and repair services. Further, the company provides design, distribution, and installation services for interior surface finishes to home builders and property managers. It sells its national brand-name merchandise and private brand products to professional customers, individual homeowners, and renters. The company serves its products through Lowes.com website, mobile applications, retail home improvement stores and outlet stores, and its branches. Lowe's Companies, Inc. was founded in 1921 and is based in Mooresville, North Carolina.
Lowe's Companies, Inc. (LOW) is a Consumer Cyclical company in the Home Improvement Retail industry with a market capitalisation of $101.4B. The stock trades at 15.27x trailing earnings and yields 2.74%.
- Sector
- Consumer Cyclical
- Industry
- Home Improvement Retail
- Market cap
- $101.4B
- P/E ratio
- 15.27
- Forward P/E
- 13.88
- EPS (TTM)
- $11.84
- Revenue (TTM)
- $90.4B
- Free cash flow
- $4.6B
- Profit margin
- 7.3%
- Dividend yield
- 2.74%
- Beta
- 0.85
- Shares outstanding
- 561.1M
Financial health: Fair5.5/10
3 strengths, 2 concerns. Weakest points: net debt vs cash flow, return on equity.
- Debt to equity: -4.02 (Strong, benchmark < 0.5) — Debt of -4.02x equity is conservative against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: 5.0y (Concern, benchmark < 4 years) — Net debt of $38.5B is 5.0x annual free cash flow — about 5 years of cash flow to repay.
- Current ratio: 1.08 (Watch, benchmark > 1.5) — Short-term assets cover 1.08x short-term liabilities, against Graham's 1.5x floor. It has been broadly flat over the last 4 years.
- Return on equity: -67.1% (Concern, benchmark > 15%) — Earns -67.1% on shareholder equity, well short of the > 15% mark.
- Gross margin: 33.0% (Watch, benchmark > 40%) — Keeps 33.0% of revenue after the direct cost of sales, short of the > 40% mark.
- Net margin: 7.3% (Watch, benchmark > 10%) — Turns 7.3% of revenue into profit, short of the > 10% mark.
- Free cash flow: $7.7B (Strong, benchmark positive) — Generated $7.7B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 8.3% (Watch, benchmark > 10%) — Revenue changed 8.3% year on year, short of the > 10% mark.
- Earnings growth: 0.0% (Watch, benchmark > 10%) — Earnings changed 0.0% year on year, short of the > 10% mark.
- PEG ratio: 1.31 (Watch, benchmark < 1) — At 1.31, the price looks fair relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 41.0% (Strong, benchmark < 60%) — Pays out 41.0% of earnings as dividends, leaving room to keep paying.