About Lowe's Companies, Inc.
Lowe's Companies, Inc. (LOW) is a Consumer Cyclical company in the Retail-Lumber & Other Building Materials Dealers industry with a market capitalisation of $111.3B. The stock trades at 16.79x trailing earnings and yields 2.47%.
- Sector
- Consumer Cyclical
- Industry
- Retail-Lumber & Other Building Materials Dealers
- Market cap
- $111.3B
- P/E ratio
- 16.79
- EPS (TTM)
- $11.85
- Revenue (TTM)
- $86.3B
- Free cash flow
- $7.7B
- Profit margin
- 7.7%
- Dividend yield
- 2.47%
- Shares outstanding
- 561.1M
Financial health: Fair5/10
3 strengths, 3 concerns. Weakest points: net debt vs cash flow, return on equity, earnings growth.
- 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: 33.5% (Watch, benchmark > 40%) — Keeps 33.5% of revenue after the direct cost of sales, short of the > 40% mark.
- Net margin: 7.7% (Watch, benchmark > 10%) — Turns 7.7% 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: 3.1% (Watch, benchmark > 10%) — Revenue changed 3.1% year on year, short of the > 10% mark.
- Earnings growth: -4.4% (Concern, benchmark > 10%) — Earnings changed -4.4% year on year, well short of the > 10% mark.
- Payout ratio: 39.6% (Strong, benchmark < 60%) — Pays out 39.6% of earnings as dividends, leaving room to keep paying.