LOWES COMPANIES INC (LOW) Factsheet

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LOWES COMPANIES INC (LOW) Stock Analysis

Analysis from 10-Q filed 2026-08-27. Data as of Q3 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 23.9%. FCF margin 7.7%. D/E -5.0x. Source: 10-Q filed 2026-08-27.

Metric Value Context
ROIC 23.9% Above industry average
FCF Margin 7.7% Healthy cash flow
Debt/Equity -5.0x Conservative leverage

ROIC 23.9% — Top 10% of sector peers. FCF margin 7.7% — Top 50%.

Explore LOWES COMPANIES INC: Earnings History | Filings

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 23.9% ROIC, Top 10% in Consumer Discretionary

ROIC TTM 23.9%, sector median 5.8%, Top 10%. DuPont: NOPAT margin 8.6% × asset turnover 1.7x. Gross margin 33.1%. Operating margin 11.4%. Source: 10-Q filed 2026-08-27.

Metric LOW Rating Context
Return on Invested Capital (ROIC) 23.9% Excellent Above sector median of 5.8%
Return on Equity (ROE) -68.2% Red flag Moderate equity returns
Gross Margin 33.1% Good Competitive pricing environment
Operating Margin 11.4% Good Moderate operational efficiency

Cash Flow: LOWES COMPANIES INC generates $7.0B FCF at 7.7% margin, positive NaN/8 quarters

FCF TTM $7.0B. FCF margin 7.7%, Top 50%. OCF/Net income 1.4x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2026-08-27.

Metric LOW Rating Context
Free Cash Flow Margin 7.7% Adequate Healthy cash generation
Free Cash Flow (TTM) $7.0B Good Positive cash generation
OCF/Net Income 1.4x Excellent High earnings quality
FCF Consistency (8Q) N/A Warning Variable cash flow

Balance Sheet: LOWES COMPANIES INC at -5.0x leverage, 6.6x interest coverage

Debt/Equity -5.0x. Total debt $37.6B, cash & investments $3.4B. Interest coverage 6.6x. Source: 10-Q filed 2026-08-27.

Metric LOW Rating Context
Debt to Equity -5.0x Excellent Conservative capital structure
Net Cash Position $-34.1B Warning Net debt position
Interest Coverage 6.6x Good Comfortable debt service

Valuation: LOWES COMPANIES INC trades at 15.6x earnings

P/E 15.6x. EV/Sales 1.5x. FCF yield 6.8%. Dividend yield 2.6%. Source: 10-Q filed 2026-08-27.

Metric LOW Rating Context
P/E Ratio 15.6x Adequate Reasonable valuation
EV/Sales 1.5x Excellent Attractive revenue multiple
FCF Yield 6.8% Good Attractive cash return
Dividend Yield 2.6% Adequate Growth focus over income

Capital Allocation: LOWES COMPANIES INC returns 3.1% shareholder yield

Total shareholder yield 3.1% (div 2.6% + buyback 0.4%). Share count +0.0% YoY. Capital returned $3.2B TTM. Source: 10-Q filed 2026-08-27.

Metric LOW Rating Context
Total Shareholder Yield 3.1% Good Dividend + buyback yield combined
Buyback Yield 0.4% Adequate Minimal buyback activity
Share Count Change (YoY) 0.0% Adequate Net dilution from issuance/SBC
Total Capital Returned (TTM) $3.2B Good Dividends + buybacks returned to shareholders

Sector Rankings

Metric Value Percentile vs Median
Return on Invested Capital (ROIC) 23.9% Top 10% 4.1x above
Free Cash Flow Margin 7.7% Top 50% 2.2x above
Gross Margin 33.1% Bottom 50% 0.9x below
Operating Margin 11.4% Top 25% 2.8x above
Return on Equity (ROE) -68.2% Top 5% -6.9x below
P/E Ratio 15.6x N/A -

Financial Scorecard

Metric LOW Rating Sector Context
Return on Invested Capital (ROIC) 23.9% Excellent Top 10% of sector (median: 5.8%)
Free Cash Flow Margin 7.7% Adequate Top 50% of sector (median: 3.5%)
Gross Margin 33.1% Good Bottom 50% of sector (median: 38.6%)
Debt to Equity Ratio -505.0% Excellent Conservative capital structure
P/E Ratio (Price-to-Earnings) 15.6x Adequate Fair value
Free Cash Flow Yield 6.8% 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 23.9%. The 8-quarter median ROIC is 28.4% with a declining trend. Sector median 5.8%. Source: 10-Q filed 2026-08-27.

Q: What is LOWES COMPANIES INC's Free Cash Flow Margin?

LOWES COMPANIES INC (LOW) has a free cash flow margin of 7.7%, generating $7.0 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2026-08-27.

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 15.6x, which is above the sector median of N/A. EV/Sales 1.5x. FCF yield 6.8%. Source: 10-Q filed 2026-08-27.

Q: Does LOWES COMPANIES INC pay a dividend?

LOWES COMPANIES INC (LOW) currently pays a dividend yield of 2.6%. Total shareholder yield (dividend + buybacks) 3.1%. Source: 10-Q filed 2026-08-27.

Q: What is LOWES COMPANIES INC's revenue and earnings growth?

LOWES COMPANIES INC (LOW) grew revenue by 8.2% year-over-year. EPS -2.7% YoY. Source: 10-Q filed 2026-08-27.

Q: Is LOWES COMPANIES INC buying back stock?

LOWES COMPANIES INC (LOW) repurchased $464.0 million of stock over the trailing twelve months. This represents a buyback yield of 0.4%. Share count +0.0% YoY. Source: 10-Q filed 2026-08-27.

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 23.9%, sector median 5.8% (Top 10%). FCF margin 7.7%, sector median 3.5% (Top 50%). Gross margin 33.1%, 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 -5.6% over 8 quarters. Source: 10-Q filed 2026-08-27.


Data Source: Data sourced from 10-Q filed 2026-08-27. TTM metrics as of Q3 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.