Lowes Companies Inc (LOW)
Consumer Discretionary · Home Improvement Retail · US stock · S&P 500 component
$204.37
▲ +7.81 (3.97%)
Fair valueFair
$205 +0.2% to fair value
$102fair band $174–$248$307
Day's range
$197.00 – $204.52
52-week range
$178.45 – $293.06
Red flags⚠ Negative equity⚠ Negative equity⚠ Negative equity⚠ Negative equity⚠ Negative equity
About Lowes Companies Inc
Home improvement is the business of Lowe's, which supplies products and services for maintenance, repair, remodelling and decorating. Its stores and website carry appliances, tools, paint, flooring, lumber, building materials, garden supplies and home decor, and offer installation services. Customers are mainly homeowners doing projects themselves or hiring others, along with professional contractors and tradespeople. The company runs a large store network across the United States and also serves customers online.
Revenue comes from merchandise and installation services purchased by households and contractors. Sales were $90.4 billion over the last twelve months, with growth of -3.8% a year over the last three years, meaning sales have declined. The operating margin is 11.4%, and the business earns a profit of 29% on the capital invested in it. Net debt is 2.7 times EBITDA. It pays a dividend with a yield of 3.0%. On the site's X-Ray Score it receives 48 out of 100.
Price chart
52-wk range $178.45 – $293.06Volume 4,290,194Daily, split-adjusted
Vitals
Market cap$114.4B
52-week range$178.45 – $293.06
Volume (last day)4,290,194
P/E (TTM)17.2
EBIT / EV yield6.9%
Free-cash-flow yield6.1%
Dividend yield3.0%
Revenue (TTM)$90.4B
Net income (TTM)$6.6B
Operating margin11.4%
Return on capital29.2%
Debt incl. leases$37.6B
Cash & securities$3.4B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$205middle half of models $154 – $252
Fair
+0.2% to fair value
Average of the 14 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is High, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $204
Undervalued < $174Fair $174 – $248Overvalued > $248
P/E multiple
$209
P/S multiple
$321
EV/EBITDA multiple
$290
EV/EBIT multiple
$262
EV/revenue multiple
$286
10-year DCF, EBITDA exit
$200
5-year DCF, EBITDA exit
$212
10-year DCF, revenue exit
$201
5-year DCF, revenue exit
$214
10-year DCF, growth exit
$139
5-year DCF, growth exit
$132
Dividend discount, stable
$84
Dividend discount, multi-stage
$99
Earnings power value
$221
Growth the price implies
11.7%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Average business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Consumer Discretionary peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Fair
54/100
Priced about in line with its sector.
See the numbers →
EBIT / EV yield6.9%
Free-cash-flow yield6.1%
Fair value vs price1.0×
Growth
Weak
27/100
Growing slower than most of its sector.
See the numbers →
Revenue growth (3y)-3.8%
EPS growth (3y)5.2%
Growth consistency50%
Profitability
Fair
55/100
Returns on capital are typical for its sector.
See the numbers →
Return on invested capital29.2%
Operating margin11.4%
Gross profitability53.5%
Financial health
Weak
49/100
Balance sheet is more stretched than most peers.
See the numbers →
Piotroski F-Score6 / 9
Net debt / EBITDA2.7×
Interest coverNo interest cost
Dividends
Fair
54/100
Dividend is typical for its sector.
See the numbers →
Dividend yield3.0%
Dividends vs free cash flow49%
Dividend growth3.6%
Quarterly results: last 6 quarters
-2.0%
May '25
+1.6%
Aug '25
+3.2%
Oct '25
+10.9%
Jan '26
+10.3%
May '26
+8.3%
Jul '26
Revenue against the same quarter a year earlier. Latest quarter revenue $26.0B, diluted EPS $4.27.
SWOT analysis: Lowes Companies Inc
Strengthsinside the company
- Return on invested capital is 29.2%, against a median of 24.2% for sector peers.
- Free cash flow equals 6.1% of the market value, which funds dividends, buybacks or debt paydown.
- Operating profit covers interest 50x, so debt costs are a small drag.
Weaknessesinside the company
- Revenue has fallen 3.8% a year over three years while sector peers grew 6.6%.
- Altman Z-score of 0.9 is in the zone linked with financial distress in past studies.
Opportunitiesvaluation and setting
- Dividends use only 49% of free cash flow, which leaves room to raise them.
Threatsvaluation and setting
- Valuation uncertainty is high: the models give widely different values, so the fair value range is wide.
- Our checks raised: Negative equity; Negative equity.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare LOW with peers and sector
Medians of 46 Consumer Discretionary peers and of 46 Consumer Discretionary stocks in our universe.
Largest peers (X-Ray Score): AMZN 42, TSLA 28, HD 40, MCD 53, TJX 55, BKNG 70.
| Metric | LOW | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 48 | 51 | 51 |
| Valuation | 54 | 48 | 48 |
| Growth | 27 | 53 | 53 |
| Profitability | 55 | 52 | 52 |
| Financial health | 49 | 50 | 50 |
| Dividends | 54 | 51 | 51 |
Sector leaders: highest X-Ray Score in Consumer Discretionary
LOW ranks #29 of 47 in Consumer Discretionary by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for LOW
Each factor is rated by where LOW stands among the 47 Consumer Discretionary stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 5 Good · 10 Average · 6 Bad of 21
Growth: 0 · 1 · 2
Profitability: 0 · 1 · 3
Financial strength: 1 · 3 · 0
Valuation: 3 · 1 · 0
Cash flow: 0 · 3 · 1
Efficiency: 1 · 1 · 0
| Factor | LOW | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | −3.8% | Bad beats 1% | +6.5% | – | – |
| Revenue growth, last year | +3.1% | Bad beats 32% | +4.9% | +0.8% | ▲ Better |
| EPS growth, 3 years a year | +5.2% | Average beats 51% | +4.0% | – | – |
| Profitability | |||||
| Gross margin | 33.1% | Bad beats 31% | 42.5% | 33.3% | ≈ In line |
| Operating margin | 11.4% | Bad beats 30% | 14.9% | 12.5% | ≈ In line |
| Net margin | 7.3% | Bad beats 29% | 11.4% | 8.3% | ≈ In line |
| Return on invested capital | 29.2% | Average beats 61% | 24.6% | – | – |
| Financial strength | |||||
| Net debt / EBITDA | 2.7x | Average beats 38% | 1.8x | 2.7x | ≈ In line |
| Interest cover | 50.0x | Good beats 76% | 25.3x | – | – |
| Current ratio | 1.10 | Average beats 50% | 1.10 | 1.09 | ≈ In line |
| Piotroski F-score | 6 / 9 | Average beats 49% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 17.2x | Good beats 72% | 21.1x | 21.2x | ▲ Better |
| Price / sales | 1.3x | Good beats 71% | 2.1x | 1.7x | ▲ Better |
| EV / EBITDA | 11.8x | Good beats 68% | 15.0x | 13.9x | ▲ Better |
| Free cash flow yield | 6.1% | Average beats 63% | 4.3% | 5.0% | ▲ Better |
| Cash flow | |||||
| Free cash flow margin | 7.7% | Bad beats 27% | 10.8% | 8.6% | ≈ In line |
| Cash from operations / net income | 1.39 | Average beats 56% | 1.37 | 1.33 | ≈ In line |
| Free cash flow growth, 3 years a year | +4.2% | Average beats 36% | +12.1% | – | – |
| Accruals (lower is better) | −4.7% | Average beats 42% | −5.3% | – | – |
| Efficiency | |||||
| Inventory turnover | 3.4x | Average beats 41% | 4.2x | 3.4x | ≈ In line |
| Days sales outstanding | 5 days | Good beats 85% | 14 days | – | – |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 2 Good · ● 11 Average · ● 3 BadCash quality
Earnings backed by cashAverage
Free-cash-flow yieldAverage
Risk models
Altman Z''Average
Piotroski F-ScoreAverage
Growth
EPS growth (3y)Average
Free-cash-flow growth (3y)Average
Revenue growth (3y)Bad
Growth consistencyBad
Balance sheet
Current ratioAverage
Net debt / EBITDAAverage
Interest coverGood
Valuation
Fair value vs priceAverage
EBIT / EV yieldGood
Profitability
Return on invested capitalAverage
Operating marginBad
Gross profitabilityAverage
Each check is graded against the company's sector, not a fixed number. Checklist score 46/100.
Financials
| FY22 | FY23 | FY24 | FY25 | FY26 | |
|---|---|---|---|---|---|
| Revenue | $96.3B | $97.1B | $86.4B | $83.7B | $86.3B |
| Operating income | $12.1B | $10.2B | $11.6B | $10.5B | $10.2B |
| Net income | $8.4B | $6.4B | $7.7B | $7.0B | $6.7B |
| Operating cash flow | $10.1B | $8.6B | $8.1B | $9.6B | $9.9B |
| Operating margin | 12.6% | 10.5% | 13.4% | 12.5% | 11.8% |
| Free cash flow | $8.3B | $6.8B | $6.2B | $7.7B | $7.7B |
| Diluted EPS | $12.04 | $10.17 | $13.20 | $12.23 | $11.85 |
Fiscal years, from SEC filings.
Technical summary
Daily
Neutral
8 bullish · 1 neutral · 7 bearish
Weekly
Strongly bearish
2 bullish · 1 neutral · 9 bearish
Monthly
Strongly bearish
0 bullish · 1 neutral · 7 bearish
Moving averages (daily)
| SMA 10 | 193.1 | Bullish |
| EMA 10 | 194.6 | Bullish |
| SMA 20 | 188.8 | Bullish |
| EMA 20 | 192.7 | Bullish |
| SMA 50 | 198.0 | Bullish |
| EMA 50 | 197.0 | Bullish |
| SMA 100 | 206.0 | Bearish |
| EMA 100 | 205.5 | Bearish |
| SMA 200 | 226.3 | Bearish |
| EMA 200 | 216.6 | Bearish |
Oscillators (daily)
| RSI (14) | 64.97 | Neutral |
| MACD (12, 26) | 0.78 | Bullish |
| Momentum (12) | 11.27 | Bullish |
| Stochastic %K (14) | 99.42 | Bearish |
| Williams %R (14) | -0.58 | Bearish |
| CCI (20) | 179.7 | Bearish |
Pivot points (classic, last session)
S3 191.9 | S2 194.4 | S1 199.4 | Pivot 202.0 | R1 206.9 | R2 209.5 | R3 214.4 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
4.90 USD
Yield on today's price
2.40%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 1.2500 | |
| 1.2500 | |
| 1.2000 | |
| 1.2000 | |
| 1.2000 | |
| 1.2000 | |
| 1.1500 | |
| 1.1500 | |
| 1.1500 | |
| 1.1500 | |
| 1.1000 | |
| 1.1000 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold LOW
| ETF | Share of the fund |
|---|---|
| ITB iShares U.S. Home Construction | 4.08% |
| NAIL Direxion Daily Homebuilders & Supplies... | 3.45% |
| XLY Consumer Discretionary Select Sector S... | 3.07% |
| XHB SPDR S&P Homebuilders | 3.02% |
| COWZ Pacer US Cash Cows 100 | 1.89% |
| VCR Vanguard Consumer Discretionary | 1.77% |
| FDIS Fidelity MSCI Consumer Discretionary I... | 1.76% |
| VALQ American Century STOXX U.S. Quality Va... | 1.51% |
The eight funds with the largest weight in LOW among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
LOW stock splits
LOW has split its stock 5 times since 1992. The latest was a 2-for-1 split on 3 Jul 2006.
Full LOW stock split history →LOW SEC filings
8-KSEC EDGAR
Director or officer change
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Shareholder vote results
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
DEF 14ASEC EDGAR
Proxy statement
10-KSEC EDGAR
Annual report
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.