LOW

LOWES COMPANIES INC

Consumer DiscretionaryCIK 0000060667

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Market Cap
$130.43B
P/E (TTM)
19.7x
Rev Growth (TTM)
+6.2%
Net Margin (TTM)
7.5%
FCF Yield (TTM)
5.8%
FCF Margin (TTM)
8.6%

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LATEST EARNINGS

Q4 FY2025
4 months 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.

Cash Flow Health

Free Cash Flow8/8 positive
TTM$7.6B
Q1 '27
$2.8B+193%
Q4 '26
$964M+971%
FCF Margin
TTM8.6%
Q1 '2712.3%+162%
Sector: 2.4%Top 25%
OCF Margin11.1%
OCF/NI1.48x
CapEx Coverage4.4x
FCF Yield5.8%
FCF Growth (2Y)+9%
Cash Conversion Cycle
47 days
DSO: 4+DIO: 107DPO: 64

Capital Allocation & Returns

Balanced
Total Shareholder YieldTTM
TTM2.4%
Div Yield2.0%
+
Buyback (TTM)0.4%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)2.0%
FCF Payout Ratio35.0%
Free Cash Flow (TTM)$7.6B
Stock Repurchases (TTM)$462.0M
Capital Return / FCF41.0%
Est. Dividends Paid (TTM)$2.7B
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
25.9%
Moderate
-0.1% YoY-15.4%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
8.8%
8Q: 9.3%
Asset Turnover
1.73x
8Q: 1.75x
Leverage (1+D/E)
-3.09x
D/E: -4.09x
DuPont: -47.0%25.9% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
4.89x
8Q:4.68x
-8.5%
Invested Cap Turn
2.95x
8Q:3.14x
-91.8%
CapEx Intensity
7.4%
8Q:8.4%
CapEx/Depreciation
0.95x
Asset-based ROIC formula

Valuation Analysis

Fair Value
Price-to-EarningsTTM
19.7x
Volatile
8Q: 81.6x+2521%
Multiple expansion without fundamental improvement
High PEG ratio (3.2x) suggests expensive for growth
Valuation Lenses
Earnings
19.7x
vs sector
Cash Flow
21.7x
EV/FCF vs
Growth-Adj
3.2xPEG
Expensive for growth
Quality-Adj
0.8P/E per %ROIC
ROIC: 25.9%
Shareholder Returns
Dividend
2.0%
Buyback
0.4%
Total Yield
2.4%
Market Cap$130.43B
EV$165.67B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
9/100
Below Average

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

Returns on Capital

Return on Equity (ROE)Top 10%
-61.7%
8Q:
Return on Invested Capital (ROIC)Top 25%
25.9%
8Q:
-15.4%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 8.8%
Asset Turnover: 1.73x

Earnings Quality

Cash Conversion

1.48x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin33.3%

Capital Efficiency

Invested Capital Turnover2.95x

Working Capital

Cash Conversion Cycle47 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
61/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
6.2%
OpInc Growth YoY
2.4%
EPS Growth YoY
-2.1%
FCF 3Y CAGR
9.2%

Margin Quality & Sustainability

Moderate
Profitability Cascade
Gross
33.3%
Operating
11.5%
Top 25% in sector
Net
7.5%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+1.1 pts
FCF: 8.6% | Net: 7.5%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Solid
Net Debt / EBITDA
Net Debt: $36.70B
Interest Coverage
Leverage Metrics
Debt-to-Equity
-4.09x
Balance sheet risk & solvency analysis