LOWES COMPANIES INC (LOW) Factsheet
LOWES COMPANIES INC (LOW) Stock Analysis
Analysis from 10-Q filed 2025-11-26. Data as of Q1 2026.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC 28.6%. FCF margin 8.9%. D/E -3.8x. Source: 10-Q filed 2025-11-26.
| Metric | Value | Context |
|---|---|---|
| ROIC | 28.6% | Above industry average |
| FCF Margin | 8.9% | Healthy cash flow |
| Debt/Equity | -3.8x | Conservative leverage |
ROIC 28.6% — Top 10% of sector peers. FCF margin 8.9% — Top 25%.
Explore LOWES COMPANIES INC: Earnings History | Filings | ROIC Analysis
Programmatic access: Available via MCP at mcp.metricduck.com. Tools for LOW: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.
Profitability: LOWES COMPANIES INC earns 28.6% ROIC, Top 10% in Consumer Discretionary
ROIC TTM 28.6%, sector median 8.1%, Top 10%. DuPont: NOPAT margin 9.0% × asset turnover 1.8x. Gross margin 33.5%. Operating margin 11.8%. Source: 10-Q filed 2025-11-26.
| Metric | LOW | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 28.6% | Excellent | Above sector median of 8.1% |
| Return on Equity (ROE) | -56.3% | Red flag | Moderate equity returns |
| Gross Margin | 33.5% | Good | Competitive pricing environment |
| Operating Margin | 11.8% | Good | Moderate operational efficiency |
Cash Flow: LOWES COMPANIES INC generates $7.7B FCF at 8.9% margin, positive NaN/8 quarters
FCF TTM $7.7B. FCF margin 8.9%, Top 25%. OCF/Net income 1.5x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-26.
| Metric | LOW | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 8.9% | Adequate | Healthy cash generation |
| Free Cash Flow (TTM) | $7.7B | Good | Positive cash generation |
| OCF/Net Income | 1.5x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: LOWES COMPANIES INC at -3.8x leverage
Debt/Equity -3.8x. Total debt $37.5B, cash & investments $1.4B. Source: 10-Q filed 2025-11-26.
| Metric | LOW | Rating | Context |
|---|---|---|---|
| Debt to Equity | -3.8x | Excellent | Conservative capital structure |
| Net Cash Position | $-36.1B | Warning | Net debt position |
Valuation: LOWES COMPANIES INC trades at 22.5x earnings
P/E 22.5x. EV/Sales 2.1x. FCF yield 5.1%. Dividend yield 1.8%. Source: 10-Q filed 2025-11-26.
| Metric | LOW | Rating | Context |
|---|---|---|---|
| P/E Ratio | 22.5x | Adequate | Premium valuation |
| EV/Sales | 2.1x | Good | Attractive revenue multiple |
| FCF Yield | 5.1% | Good | Attractive cash return |
| Dividend Yield | 1.8% | Adequate | Growth focus over income |
Capital Allocation: LOWES COMPANIES INC returns 1.9% shareholder yield
Total shareholder yield 1.9% (div 1.8% + buyback 0.1%). Capital returned $2.8B TTM. Source: 10-Q filed 2025-11-26.
| Metric | LOW | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 1.9% | Adequate | Dividend + buyback yield combined |
| Buyback Yield | 0.1% | Adequate | Minimal buyback activity |
| Total Capital Returned (TTM) | $2.8B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 28.6% | Top 10% | 3.5x above |
| Free Cash Flow Margin | 8.9% | Top 25% | 4.0x above |
| Gross Margin | 33.5% | Bottom 50% | 0.9x below |
| Operating Margin | 11.8% | Top 25% | 2.8x above |
| Return on Equity (ROE) | -56.3% | Top 5% | -5.5x below |
| P/E Ratio | 22.5x | N/A | - |
Financial Scorecard
| Metric | LOW | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 28.6% | Excellent | Top 10% of sector (median: 8.1%) |
| Free Cash Flow Margin | 8.9% | Adequate | Top 25% of sector (median: 2.2%) |
| Gross Margin | 33.5% | Good | Bottom 50% of sector (median: 39.1%) |
| Debt to Equity Ratio | -378.0% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 22.5x | Adequate | Fair value |
| Free Cash Flow Yield | 5.1% | Good | Solid cash yield |
Frequently Asked Questions
Q: What is LOWES COMPANIES INC's Return on Invested Capital (ROIC)?
LOWES COMPANIES INC (LOW) has a trailing twelve-month Return on Invested Capital (ROIC) of 28.6%. Sector median 8.1%. Source: 10-Q filed 2025-11-26.
Q: What is LOWES COMPANIES INC's Free Cash Flow Margin?
LOWES COMPANIES INC (LOW) has a free cash flow margin of 8.9%, generating $7.7 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-11-26.
Q: What is LOWES COMPANIES INC's P/E ratio and how does it compare to peers?
LOWES COMPANIES INC (LOW) trades at a P/E ratio of 22.5x, which is above the sector median of N/A. EV/Sales 2.1x. FCF yield 5.1%. Source: 10-Q filed 2025-11-26.
Q: Does LOWES COMPANIES INC pay a dividend?
LOWES COMPANIES INC (LOW) currently pays a dividend yield of 1.8%. Total shareholder yield (dividend + buybacks) 1.9%. Source: 10-Q filed 2025-11-26.
Q: What is LOWES COMPANIES INC's revenue and earnings growth?
LOWES COMPANIES INC (LOW) grew revenue by 3.1% year-over-year. EPS -3.1% YoY. Source: 10-Q filed 2025-11-26.
Q: Is LOWES COMPANIES INC buying back stock?
LOWES COMPANIES INC (LOW) repurchased $211.0 million of stock over the trailing twelve months. This represents a buyback yield of 0.1%. Source: 10-Q filed 2025-11-26.
Q: How does LOWES COMPANIES INC compare to competitors in Consumer Discretionary?
Compared to other companies in Consumer Discretionary, LOWES COMPANIES INC (LOW) shows: ROIC 28.6%, sector median 8.1% (Top 10%). FCF margin 8.9%, sector median 2.2% (Top 25%). Gross margin 33.5%, 5.6pp below sector median. These rankings are based on MetricDuck's analysis of all Consumer Discretionary companies with available SEC filings.
Q: What warning signs should I watch for with LOWES COMPANIES INC?
Quantitative warning flags for LOWES COMPANIES INC (LOW): 1) ROIC declining -11.6% over 8 quarters. Source: 10-Q filed 2025-11-26.
Data Source: Data sourced from 10-Q filed 2025-11-26. TTM metrics as of Q1 2026.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.