LOW

LOWES COMPANIES INC

Consumer Discretionary • CIK: 0000060667

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Market Cap
$149.29B
P/E (TTM)
22.5x
Rev Growth (TTM)
+3.1%
Net Margin (TTM)
7.7%
FCF Yield (TTM)
5.1%
FCF Margin (TTM)
8.9%

Filing Intelligence

6.0/10
10-K filed Mar 23, 2026 • FY 2025

Executive Summary

Management expresses confidence in long-term growth despite acknowledging volatility in the housing market.. Significant non-cancellable purchase commitments totaling $2.3 billion over several...

Key Concerns

  • ●Reclassification of accounts receivable-net, Goodwill, and Intangible assets - net for the prior year to conform with current year...
  • ●Significant non-cancellable purchase commitments totaling $2.3 billion over several years.
  • ●Legal proceedings, including an EPA investigation, have resulted in a $12.5 million civil penalty and a new consent decree.

Key Strengths

  • ●Revenue growth was driven by acquisitions, with modest comparable sales growth impacted by fewer transactions but higher ticket prices.
  • ●Gross margins improved due to credit revenue and inventory shrink reduction, but operating expenses increased as a percentage of sales.
  • ●The company is investing in strategic initiatives and acquisitions, which is reflected in increased capital expenditures and debt.
View Full Quarterly Insights →

LATEST EARNINGS

•
Q4 FY2025
•
about 1 month ago
•View source
Revenue
$20.58B
+10.9%
Net Income
$999.00M
-11.2%
EPS
$1.78
-10.6%
Gross
32.5%↓ -0.4%
Operating
8.3%↓ -1.6%
Net
4.8%↓ -1.2%
  • •Total sales increased to $20.6 billion, up from $18.6 billion in the prior-year quarter.
  • •Comparable sales increased 1.3%, driven by growth in Pro, online, and home services sales, as well as strong holiday performance.
  • •Diluted EPS of $1.78, with adjusted diluted EPS of $1.98, representing a 2.6% increase year-over-year.
  • •Company returned $2.6 billion to shareholders through dividends for the fiscal year.
View Full Earnings →

Cash Flow Health

Free Cash Flow8/8 positive
TTM$7.7B
Q4 '26
$964M+971%
Q3 '26
$90M-98%
FCF Margin
TTM8.9%
Q4 '264.7%+983%
Sector: 2.7%Top 25%
OCF Margin11.4%
OCF/NI1.49x
CapEx Coverage4.5x
FCF Yield5.1%
FCF Growth (2Y)+4%
Cash Conversion Cycle
46 days
DSO: 0+DIO: 110−DPO: 64
View Insights from Latest Filing →View Full Cash Flow Statement →

Capital Allocation & Returns

Growth Focused
Total Shareholder YieldTTM
TTM1.9%
Div Yield1.8%
+
Buyback (TTM)0.1%

Prioritizing reinvestment over distributions

Dividend & Payout Metrics
Dividend Yield (TTM)1.8%
FCF Payout Ratio34.7%
Free Cash Flow (TTM)$7.7B
Stock Repurchases (TTM)$211.0M
Capital Return / FCF37.2%
Est. Dividends Paid (TTM)$2.7B
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
28.6%
Moderate
-0.0% YoY-11.6%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
9.0%
8Q: 9.3%
Asset Turnover
1.78x
8Q: 1.85x
Leverage (1+D/E)
-2.78x
D/E: -3.78x
DuPont: -44.3% ≈ 28.6% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
4.82x
8Q:4.68x
-28.0%
Invested Cap Turn
3.19x
8Q:3.31x
-63.3%
CapEx Intensity
8.2%
8Q:8.4%
CapEx/Depreciation
1.01x
Asset-based ROIC formula
Full Analysis

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ4 2026Q3 2026Q2 2026Q1 2026Q4 2025Q3 2025Q2 2025Q1 2025
Revenue
$86.3B
$20.6B↓1.1%
$20.8B↓13.1%
$24.0B↑14.5%
$20.9B↑12.8%
$18.6B↓8.0%
$20.2B↓14.5%
$23.6B↑10.4%
$21.4B
Operating Income
$10.2B
$1.7B↓31.2%
$2.5B↓28.5%
$3.5B↑39.1%
$2.5B↑36.3%
$1.8B↓27.8%
$2.5B↓26.4%
$3.4B↑29.9%
$2.7B
Net Income
$6.6B
$997.0M↓38.2%
$1.6B↓32.6%
$2.4B↑46.1%
$1.6B↑45.8%
$1.1B↓33.6%
$1.7B↓28.9%
$2.4B↑35.8%
$1.8B
Operating Cash Flow
$9.9B
$1.6B↑128.1%
$687.0M↓83.8%
$4.2B↑25.2%
$3.4B↑270.9%
$911.0M↓29.9%
$1.3B↓58.8%
$3.2B↓26.0%
$4.3B
Free Cash Flow
$7.7B
$964.0M↑971.1%
$90.0M↓97.6%
$3.7B↑30.6%
$2.9B↑688.2%
$363.0M↓50.1%
$728.0M↓73.3%
$2.7B↓29.7%
$3.9B
Total Equity
N/A
Income StatementCash Flow StatementBalance Sheet

Valuation Analysis

Fair Value
Price-to-EarningsTTM
22.5x
Volatile
8Q: 80.1x+4076%
Multiple expansion without fundamental improvement
Valuation Lenses
Earnings
22.5x
vs – sector
Cash Flow
23.5x
EV/FCF vs –
Growth-Adj
–PEG
N/A
Quality-Adj
0.8P/E per %ROIC
ROIC: 28.6%
Shareholder Returns
Dividend
1.8%
Buyback
0.1%
Total Yield
1.9%
Market Cap$149.29B
EV$179.87B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
18/100
Below Average

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Top 10%
-56.3%
8Q:–
Return on Invested Capital (ROIC)Top 25%
28.6%
8Q:–
-11.6%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 9.0%
Asset Turnover: 1.78x

Earnings Quality

Cash Conversion

1.49x

OCF / Net Income ✓

FCF Consistency

–

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin33.5%

Capital Efficiency

Invested Capital Turnover3.19x

Working Capital

Cash Conversion Cycle46 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
55/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
3.1%
OpInc Growth YoY
-6.7%
EPS Growth YoY
-3.1%
FCF 3Y CAGR
4.2%

Margin Quality & Sustainability

Moderate
Profitability Cascade
Gross
33.5%
Operating
11.8%
Top 25% in sector
Net
7.7%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
+1.2 pts
FCF: 8.9% | Net: 7.7%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Solid
Net Debt / EBITDA
–Net Debt: $36.14B
Interest Coverage
–
Balance sheet risk & solvency analysis

Research

All research