Lowe's Companies
Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States, Canada, and Mexico. The last earnings update was 23 days ago. More info.
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LOW Share Price and Events
7 Day Returns
1 Year Returns
LOW Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Lowe's Companies (LOW) | 0.5% | 4.1% | -8.4% | 3% | 27.6% | 106.2% |
| US Specialty Retail | -1.7% | 1.8% | -3.1% | 1.1% | 28.2% | 40.4% |
| US Market | -0.4% | 2.8% | 2.7% | 4.3% | 40.9% | 38.2% |
1 Year Return vs Industry and Market
- LOW outperformed the Specialty Retail industry which returned 1.1% over the past year.
- LOW underperformed the Market in United States of America which returned 4.3% over the past year.
LOW Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Lowe's Companies
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Lowe's Companies.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 29 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 8.9% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Specialty Retail Unlevered Beta | Simply Wall St/ S&P Global | 0.87 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.868 (1 + (1- 21%) (28.46%)) |
1.042 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.04 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.042 * 5.96%) |
8.94% |
Discounted Cash Flow Calculation for NYSE:LOW using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Lowe's Companies is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 8.94%) |
|
|---|---|---|---|
| 2019 | 5,572.66 | Analyst x8 | 5,115.33 |
| 2020 | 3,602.68 | Analyst x10 | 3,035.63 |
| 2021 | 5,459.35 | Analyst x10 | 4,222.55 |
| 2022 | 5,625.57 | Analyst x6 | 3,994.03 |
| 2023 | 5,548.00 | Analyst x3 | 3,615.70 |
| 2024 | 6,586.33 | Analyst x3 | 3,940.14 |
| 2025 | 6,902.82 | Est @ 4.81% | 3,790.58 |
| 2026 | 7,191.54 | Est @ 4.18% | 3,625.03 |
| 2027 | 7,460.99 | Est @ 3.75% | 3,452.22 |
| 2028 | 7,717.78 | Est @ 3.44% | 3,277.97 |
| Present value of next 10 years cash flows | $38,069.18 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $7,717.78 × (1 + 2.73%) ÷ (8.94% – 2.73%) |
$127,665.82 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $127,665.82 ÷ (1 + 8.94%)10 |
$54,223.49 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $38,069.18 + $54,223.49 |
$92,292.67 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $92,292.67 / 782.92 |
$117.88 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $117.88 |
| Current discount | Discount to share price of
$99.24
= -1 x ($99.24 - $117.88) / $117.88 |
15.8% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Lowe's Companies's share price is below the future cash flow value, but not at a moderate discount (< 20%).
- Lowe's Companies's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Lowe's Companies's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Lowe's Companies's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-05-03) in USD | $2.94 |
| NYSE:LOW Share Price ** | NYSE (2019-06-26) in USD | $99.24 |
| United States of America Specialty Retail Industry PE Ratio | Median Figure of 63 Publicly-Listed Specialty Retail Companies | 14.64x |
| United States of America Market PE Ratio | Median Figure of 3,094 Publicly-Listed Companies | 17.77x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Lowe's Companies.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:LOW Share Price ÷ EPS (both in USD) = 99.24 ÷ 2.94 |
33.73x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Lowe's Companies is overvalued based on earnings compared to the US Specialty Retail industry average.
- Lowe's Companies is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Lowe's Companies's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 33.73x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 29 Analysts |
10.4%per year |
| United States of America Specialty Retail Industry PEG Ratio | Median Figure of 56 Publicly-Listed Specialty Retail Companies | 1.55x |
| United States of America Market PEG Ratio | Median Figure of 2,133 Publicly-Listed Companies | 1.51x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 33.73x ÷ 10.4% |
3.24x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Lowe's Companies is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Lowe's Companies's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-05-03) in USD | $4.07 |
| NYSE:LOW Share Price * | NYSE (2019-06-26) in USD | $99.24 |
| United States of America Specialty Retail Industry PB Ratio | Median Figure of 100 Publicly-Listed Specialty Retail Companies | 1.3x |
| United States of America Market PB Ratio | Median Figure of 5,255 Publicly-Listed Companies | 1.78x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:LOW Share Price ÷ Book Value per Share (both in USD) = 99.24 ÷ 4.07 |
24.38x |
* Primary Listing of Lowe's Companies.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Lowe's Companies is overvalued based on assets compared to the US Specialty Retail industry average.
Value checks
We assess Lowe's Companies's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Specialty Retail industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Specialty Retail industry average (and greater than 0)? (1 check) Lowe's Companies has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
LOW Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Lowe's Companies's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Lowe's Companies's earnings growth is positive but not above the United States of America market average.
- Lowe's Companies's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:LOW Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 29 Analysts | 10.4% |
| NYSE:LOW Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 29 Analysts | 3.3% |
| United States of America Specialty Retail Industry Earnings Growth Rate | Market Cap Weighted Average | 10.2% |
| United States of America Specialty Retail Industry Revenue Growth Rate | Market Cap Weighted Average | 5.6% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.9% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.4% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 29 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2024-01-31 | 82,670 | 7,946 | 6,190 | 4 |
| 2023-01-31 | 80,458 | 6,537 | 5,806 | 4 |
| 2022-01-31 | 77,728 | 7,154 | 5,327 | 12 |
| 2021-01-31 | 75,030 | 6,909 | 4,910 | 29 |
| 2020-01-31 | 72,554 | 5,132 | 4,440 | 29 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-05-03 | 71,690 | 4,901 | 2,365 |
| 2019-02-01 | 71,309 | 6,193 | 2,307 |
| 2018-11-02 | 71,157 | 6,491 | 3,681 |
| 2018-08-03 | 70,512 | 5,778 | 3,923 |
| 2018-05-04 | 69,119 | 5,199 | 3,821 |
| 2018-02-02 | 68,619 | 5,065 | 3,436 |
| 2017-11-03 | 68,909 | 5,720 | 3,526 |
| 2017-08-04 | 67,878 | 6,063 | 3,032 |
| 2017-05-05 | 66,643 | 5,692 | 2,782 |
| 2017-02-03 | 65,017 | 5,617 | 3,062 |
| 2016-10-28 | 62,469 | 5,507 | 2,430 |
| 2016-07-29 | 61,090 | 5,248 | 2,787 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 29 Analyst Estimates (S&P Global) | See Below |
All data from Lowe's Companies Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2024-01-31 | 9.48 | 10.81 | 8.15 | 2.00 |
| 2023-01-31 | 8.67 | 9.66 | 7.67 | 2.00 |
| 2022-01-31 | 7.53 | 8.33 | 6.71 | 7.00 |
| 2021-01-31 | 6.63 | 6.92 | 6.27 | 14.00 |
| 2020-01-31 | 5.66 | 5.76 | 5.60 | 12.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-05-03 | 2.94 |
| 2019-02-01 | 2.84 |
| 2018-11-02 | 4.50 |
| 2018-08-03 | 4.76 |
| 2018-05-04 | 4.60 |
| 2018-02-02 | 4.10 |
| 2017-11-03 | 4.15 |
| 2017-08-04 | 3.53 |
| 2017-05-05 | 3.20 |
| 2017-02-03 | 3.48 |
| 2016-10-28 | 2.73 |
| 2016-07-29 | 3.09 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Lowe's Companies is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
Future performance checks
We assess Lowe's Companies's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Lowe's Companies has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
LOW Past Performance
How has Lowe's Companies performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Lowe's Companies's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
- Lowe's Companies's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- Lowe's Companies's 1-year earnings growth is negative, it can't be compared to the US Specialty Retail industry average.
Earnings and Revenue History
All data from Lowe's Companies Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-05-03 | 71,690.00 | 2,365.00 | 15,437.00 | |
| 2019-02-01 | 71,309.00 | 2,307.00 | 15,509.00 | |
| 2018-11-02 | 71,157.00 | 3,681.00 | 15,303.00 | |
| 2018-08-03 | 70,512.00 | 3,923.00 | 15,013.00 | |
| 2018-05-04 | 69,119.00 | 3,821.00 | 14,483.00 | |
| 2018-02-02 | 68,619.00 | 3,436.00 | 14,425.00 | |
| 2017-11-03 | 68,909.00 | 3,526.00 | 15,601.00 | |
| 2017-08-04 | 67,878.00 | 3,032.00 | 15,410.00 | |
| 2017-05-05 | 66,643.00 | 2,782.00 | 15,345.00 | |
| 2017-02-03 | 65,017.00 | 3,062.00 | 14,328.00 | |
| 2016-10-28 | 62,469.00 | 2,430.00 | 14,079.00 | |
| 2016-07-29 | 61,090.00 | 2,787.00 | 13,741.00 | |
| 2016-04-29 | 60,179.00 | 2,744.00 | 13,507.00 | |
| 2016-01-29 | 59,074.00 | 2,534.00 | 13,541.00 | |
| 2015-10-30 | 58,379.00 | 2,970.00 | 13,478.00 | |
| 2015-07-31 | 57,700.00 | 2,818.00 | 13,453.00 | |
| 2015-05-01 | 56,949.00 | 2,732.00 | 13,358.00 | |
| 2015-01-30 | 56,223.00 | 2,682.00 | 13,230.00 | |
| 2014-10-31 | 55,342.00 | 2,538.00 | 13,075.00 | |
| 2014-08-01 | 54,618.00 | 2,452.00 | 13,006.00 | |
| 2014-05-02 | 53,732.00 | 2,353.00 | 12,882.00 | |
| 2014-01-31 | 53,417.00 | 2,270.00 | 12,808.00 | |
| 2013-11-01 | 52,803.00 | 2,253.00 | 12,612.00 | |
| 2013-08-02 | 51,919.00 | 2,151.00 | 12,377.00 | |
| 2013-05-03 | 50,456.00 | 1,958.00 | 12,137.00 | |
| 2013-02-01 | 50,521.00 | 1,945.00 | 12,156.00 | |
| 2012-11-02 | 51,104.00 | 1,978.00 | 12,325.00 | |
| 2012-08-03 | 50,882.00 | 1,809.00 | 12,259.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Whilst Lowe's Companies made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
- Lowe's Companies used its assets more efficiently than the US Specialty Retail industry average last year based on Return on Assets.
- Lowe's Companies's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Lowe's Companies's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Specialty Retail industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Lowe's Companies has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
LOW Health
How is Lowe's Companies's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Lowe's Companies's finances.
The net worth of a company is the difference between its assets and liabilities.
- Lowe's Companies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Lowe's Companies's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Lowe's Companies Company Filings, last reported 1 month ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-05-03 | 3,236.00 | 17,129.00 | 3,163.00 |
| 2019-02-01 | 3,644.00 | 15,449.00 | 729.00 |
| 2018-11-02 | 5,394.00 | 15,577.00 | 1,876.00 |
| 2018-08-03 | 5,781.00 | 15,831.00 | 2,642.00 |
| 2018-05-04 | 5,745.00 | 15,844.00 | 1,770.00 |
| 2018-02-02 | 5,873.00 | 16,995.00 | 690.00 |
| 2017-11-03 | 5,742.00 | 16,038.00 | 828.00 |
| 2017-08-04 | 5,536.00 | 16,084.00 | 1,815.00 |
| 2017-05-05 | 5,531.00 | 16,065.00 | 2,047.00 |
| 2017-02-03 | 6,434.00 | 15,699.00 | 658.00 |
| 2016-10-28 | 6,708.00 | 15,195.00 | 1,083.00 |
| 2016-07-29 | 7,022.00 | 15,811.00 | 2,156.00 |
| 2016-04-29 | 7,212.00 | 15,405.00 | 4,735.00 |
| 2016-01-29 | 7,654.00 | 12,649.00 | 712.00 |
| 2015-10-30 | 8,378.00 | 12,599.00 | 1,385.00 |
| 2015-07-31 | 8,687.00 | 11,359.00 | 1,089.00 |
| 2015-05-01 | 9,477.00 | 11,360.00 | 1,529.00 |
| 2015-01-30 | 9,968.00 | 11,358.00 | 591.00 |
| 2014-10-31 | 10,730.00 | 11,357.00 | 1,773.00 |
| 2014-08-01 | 11,240.00 | 10,117.00 | 1,129.00 |
| 2014-05-02 | 11,482.00 | 10,127.00 | 768.00 |
| 2014-01-31 | 11,853.00 | 10,521.00 | 576.00 |
| 2013-11-01 | 12,651.00 | 10,141.00 | 1,216.00 |
| 2013-08-02 | 13,062.00 | 9,062.00 | 1,274.00 |
| 2013-05-03 | 13,252.00 | 9,073.00 | 1,199.00 |
| 2013-02-01 | 13,857.00 | 9,077.00 | 666.00 |
| 2012-11-02 | 14,225.00 | 9,049.00 | 1,300.00 |
| 2012-08-03 | 14,824.00 | 9,602.00 | 2,296.00 |
- Lowe's Companies's level of debt (542.3%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (88.2% vs 542.3% today).
- Debt is well covered by operating cash flow (27.9%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 9.6x coverage).
Financial health checks
We assess Lowe's Companies's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Lowe's Companies has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
LOW Dividends
What is Lowe's Companies's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Lowe's Companies
shares you are expected to receive
$44
in your first year as a dividend.
Dividend Amount
- Lowe's Companies's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
- Lowe's Companies's dividend is below the markets top 25% of dividend payers in United States of America (3.73%).
Upcoming dividend payment
Purchase Lowe's Companies before the 'Buy Limit' to receive their next dividend payment.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 29 Analyst Estimates (S&P Global) | See Below |
| United States of America Specialty Retail Industry Average Dividend Yield | Market Cap Weighted Average of 38 Stocks | 2.2% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2012 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2024-01-31 | 3.59 | 2.00 |
| 2023-01-31 | 3.11 | 2.00 |
| 2022-01-31 | 2.59 | 7.00 |
| 2021-01-31 | 2.28 | 12.00 |
| 2020-01-31 | 2.03 | 12.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-05-31 | 2.200 | 2.252 |
| 2019-03-22 | 1.920 | 1.775 |
| 2018-11-09 | 1.920 | 2.001 |
| 2018-08-17 | 1.920 | 1.815 |
| 2018-06-01 | 1.920 | 1.953 |
| 2018-03-23 | 1.640 | 1.891 |
| 2017-11-10 | 1.640 | 1.811 |
| 2017-08-18 | 1.640 | 2.094 |
| 2017-06-02 | 1.640 | 2.123 |
| 2017-03-24 | 1.400 | 1.686 |
| 2016-11-11 | 1.400 | 1.884 |
| 2016-08-19 | 1.400 | 1.958 |
| 2016-05-27 | 1.400 | 1.751 |
| 2016-03-18 | 1.120 | 1.465 |
| 2015-11-13 | 1.120 | 1.559 |
| 2015-08-21 | 1.120 | 1.582 |
| 2015-05-29 | 1.120 | 1.621 |
| 2015-03-20 | 0.920 | 1.267 |
| 2014-11-14 | 0.920 | 1.341 |
| 2014-08-22 | 0.920 | 1.698 |
| 2014-05-30 | 0.920 | 1.920 |
| 2014-03-21 | 0.720 | 1.536 |
| 2014-02-26 | 0.720 | 1.444 |
| 2013-11-15 | 0.720 | 1.509 |
| 2013-08-23 | 0.720 | 1.496 |
| 2013-05-31 | 0.720 | 1.673 |
| 2013-03-22 | 0.640 | 1.612 |
| 2012-11-16 | 0.640 | 1.739 |
| 2012-08-24 | 0.640 | 2.096 |
| 2012-06-01 | 0.640 | 2.384 |
| 2012-03-23 | 0.560 | 1.865 |
| 2011-11-14 | 0.560 | 2.125 |
| 2011-08-22 | 0.560 | 2.734 |
| 2011-05-27 | 0.560 | 2.542 |
| 2011-03-21 | 0.440 | 1.687 |
| 2010-11-12 | 0.440 | 1.774 |
| 2010-08-20 | 0.440 | 2.032 |
| 2010-05-28 | 0.440 | 2.065 |
| 2010-03-22 | 0.360 | 1.402 |
| 2009-11-16 | 0.360 | 1.563 |
| 2009-08-24 | 0.360 | 1.714 |
| 2009-05-29 | 0.360 | 1.769 |
| 2009-05-18 | 0.360 | 1.841 |
| 2009-03-23 | 0.340 | 1.726 |
| 2008-11-17 | 0.340 | 1.822 |
| 2008-08-25 | 0.340 | 1.589 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Lowe's Companies's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are covered by earnings (1.5x coverage).
- Dividends after 3 years are expected to be well covered by earnings (2.9x coverage).
Income/ dividend checks
We assess Lowe's Companies's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Lowe's Companies afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Lowe's Companies has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
LOW Management
CEO
| COMPENSATION | $14,302,791 |
| AGE | 53 |
| TENURE AS CEO | 0.9 years |
CEO Bio
Mr. Marvin R. Ellison has been a Director of FedEx Corporation since 2014. Mr. Ellison serves as the President, Chief Executive Officer and Director of Lowe’s Companies, Inc since July 2, 2018. Mr. Ellison was Chairman of the Board of J. C. Penney Co. Inc. from August 2016 to May 2018 and was its Chief Executive Officer from August 2015 to May 2018. He was a Director of J. C. Penney Corporation, Inc. and J. C. Penney Co. Inc. from 2014 to June 01, 2018. He served as President and CEO-Designee of J. C. Penney from November 2014 to July 2015. Prior to joining J. C. Penney Company, Inc., he served as Executive Vice President - U.S. Stores of The Home Depot, Inc. (home improvement supplies retailer) from August 2008 to October 2014. His prior roles with The Home Depot, Inc. included President - Northern Division from June 2002 to August 2008, Senior Vice President - Global Logistics from 2005 to 2006, Vice President - Logistics from 2004 to 2005, and Vice President - Loss Prevention from 2002 to 2004. Mr. Ellison began his career with Target Corporation (retailer) where he served in a variety of operational roles. Mr. Ellison spent 15 years at Target Corporation in a variety of operational roles. He has gained marketing expertise through his executive experience at The Home Depot and J. C. Penney. He has significant executive leadership experience gained from executive positions held at The Home Depot and J. C. Penney. Mr. Ellison is a Director of the Retail Industry Leaders Association and the National Retail Federation and served as Director of H&R Block, Inc. from 2011 to 2014. He served as a Director of J. C. Penney Company, Inc. Mr. Ellison earned Business Administration degree in Marketing from the University of Memphis and Master of Business Administration from Emory University.
CEO Compensation
- Insufficient data for Marvin to compare compensation growth.
- Marvin's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Lowe's Companies management team in years:
- The tenure for the Lowe's Companies management team is about average.
Management Team
Marvin Ellison
President
$14M
53
0.9 yrs
Dave Denton
Executive VP & CFO
$3M
53
0.6 yrs
Tiffany Mason
Senior VP of Corporate Finance & Treasurer
$2M
3.9 yrs
Bill McCanless
Executive VP
$3M
60
4.4 yrs
Jennifer Weber
Executive Vice President of Human Resources
$3M
51
3.3 yrs
Joe McFarland
Executive Vice President of Stores
$4M
48
0.8 yrs
Matthew Hollifield
Senior VP & Chief Accounting Officer
52
13.6 yrs
Seemantini Godbole
EVP & Chief Information Officer
0.6 yrs
Nelson Peace
Senior Vice President of Administration
52
7.4 yrs
Jeff Vining
Senior VP
2.4 yrs
Board of Directors Tenure
Average tenure and age of the Lowe's Companies board of directors in years:
- The tenure for the Lowe's Companies board of directors is about average.
Board of Directors
Rick Dreiling
Chairman
$457K
65
0.9 yrs
Marvin Ellison
President
$14M
53
0.9 yrs
Eric Wiseman
Independent Director
$292K
62
7.6 yrs
Laurie Douglas
Independent Director
$272K
54
4.1 yrs
Bert Scott
Independent Director
$272K
67
3.6 yrs
Brian Rogers
Director
$250K
63
1 yrs
Raul Alvarez
Independent Director
$297K
63
8.8 yrs
Bray Braly
Independent Director
$287K
57
5.6 yrs
Jim Morgan
Independent Director
$272K
71
4.4 yrs
Sandy Cochran
Independent Director
$272K
60
3.4 yrs
Who owns this company?
Recent Insider Trading
- More shares have been bought than sold by Lowe's Companies individual insiders in the past 3 months.
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 21. Jun 19 | Buy | Donald Frieson | Individual | 19. Jun 19 | 19. Jun 19 | 2,030 | $98.69 | $200,342 | ||
| 29. May 19 | Buy | Marvin Ellison | Individual | 24. May 19 | 24. May 19 | 10,000 | $95.05 | $950,538 | ||
| 28. May 19 | Buy | Lisa Wardell | Individual | 24. May 19 | 24. May 19 | 250 | $94.90 | $23,725 | ||
| 27. Nov 18 | Buy | Brian Rogers | Individual | 23. Nov 18 | 23. Nov 18 | 10,000 | $88.02 | $880,200 | ||
| 20. Sep 18 | Sell | Marshall Croom | Individual | 18. Sep 18 | 18. Sep 18 | -2,235 | $114.68 | $-256,307 | ||
| 28. Aug 18 | Buy | Lisa Wardell | Individual | 24. Aug 18 | 24. Aug 18 | 273 | $107.72 | $29,407 | ||
Management checks
We assess Lowe's Companies's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Lowe's Companies has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
LOW News
Simply Wall St News
What Does Lowe's Companies, Inc.'s (NYSE:LOW) Share Price Indicate?
It’s trading around 14% below my intrinsic value, which means if you buy Lowe's Companies today, you’d be paying a fair price for it. … This is because Lowe's Companies’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. … LOW’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value.
Simply Wall St - – Full articleDespite Its High P/E Ratio, Is Lowe's Companies, Inc. (NYSE:LOW) Still Undervalued?
See our latest analysis for Lowe's Companies How Do I Calculate Lowe's Companies's Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Lowe's Companies: P/E of 32.41 = $95.37 ÷ $2.94 (Based on the trailing twelve months to May 2019.) Is A High Price-to-Earnings Ratio Good? … NYSE:LOW Price Estimation Relative to Market, May 28th 2019 Its relatively high P/E ratio indicates that Lowe's Companies shareholders think it will perform better than other companies in its industry classification.
Simply Wall St - – Full articleEstimating The Fair Value Of Lowe's Companies, Inc. (NYSE:LOW)
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $5.57k $5.13k $5.38k $6.08k $6.00k $6.77k $7.15k $7.48k $7.79k $8.08k Growth Rate Estimate Source Analyst x8 Analyst x11 Analyst x11 Analyst x5 Analyst x3 Analyst x3 Est @ 5.56% Est @ 4.71% Est @ 4.12% Est @ 3.7% Present Value ($, Millions) Discounted @ 8.82% $5.12k $4.33k $4.17k $4.33k $3.93k $4.08k $3.95k $3.80k $3.64k $3.47k Present Value of 10-year Cash Flow (PVCF)= $40.84b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$8.1b × (1 + 2.7%) ÷ (8.8% – 2.7%) = US$136b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$136b ÷ ( 1 + 8.8%)10 = $58.51b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is $99.35b. … NYSE:LOW Intrinsic value, May 17th 2019 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.
Simply Wall St - – Full articleHow Much Are Lowe's Companies, Inc. (NYSE:LOW) Insiders Spending On Buying Shares?
It is not uncommon to see companies perform well in the years after insiders buy shares. … So shareholders might well want to know whether insiders have been buying or selling shares in Lowe's Companies, Inc. … The Last 12 Months Of Insider Transactions At Lowe's Companies.
Simply Wall St - – Full articleShould Lowe's Companies, Inc. (NYSE:LOW) Be Part Of Your Portfolio?
(NYSE:LOW) a good dividend stock? How would you know? A dividend paying company with growing earnings can be rewarding in the long term.. … Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1 … Click the interactive chart for our full dividend analysis
Simply Wall St - – Full articleHow Do Analysts See Lowe's Companies, Inc. (NYSE:LOW) Performing In The Next 12 Months?
(NYSE:LOW) released its earnings announcement on 01 February 2019, … it seems that analyst forecasts are substantially optimistic, … with earnings expected to grow by a high double-digit of 100% in the upcoming year,
Simply Wall St - – Full articleWhy We Like Lowe's Companies, Inc.’s (NYSE:LOW) 30% Return On Capital Employed
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.
Simply Wall St - – Full articleWill Lowe's Companies, Inc.'s (NYSE:LOW) Earnings Grow Over The Next Few Years?
In February 2019, Lowe's Companies, Inc. … (NYSE:LOW) announced its most recent earnings update, whicha … indicated
Simply Wall St - – Full articleShould You Think About Buying Lowe's Companies, Inc. (NYSE:LOW) Now?
saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Let’s examine Lowe's Companies’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
Simply Wall St - – Full articleDo Directors Own Lowe's Companies, Inc. (NYSE:LOW) Shares?
Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Companies that used to be publicly owned tend to have lower insider ownership. … Lowe's Companies has a market capitalization of US$84b, so it's too big to fly under the radar.
Simply Wall St - – Full articleLOW Company Info
Description
Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States, Canada, and Mexico. The company offers a line of products for construction, maintenance, repair, remodeling, and decorating. It provides home improvement products in various categories, such as lumber and building materials, appliances, seasonal and outdoor living, tools and hardware, fashion fixtures, rough plumbing and electrical, paint, millwork, lawn and garden, flooring, and kitchens. It also offers installation services through independent contractors in various product categories; extended protection plans; and in-warranty and out-of-warranty repair services. The company sells its national brand-name merchandise and private branded products to homeowners, renters, and professional customers. As of February 1, 2019, it operated 2,015 home improvement and hardware stores. The company also sells its products through online sites comprising Lowes.com and Lowesforpros.com; and through mobile applications. Lowe's Companies, Inc. was founded in 1946 and is based in Mooresville, North Carolina.
Details
| Name: | Lowe's Companies, Inc. |
| LOW | |
| Exchange: | NYSE |
| Founded: | 1946 |
| $77,696,631,872 | |
| 782,916,484 | |
| Website: | http://www.lowes.com |
| Address: |
Lowe's Companies, Inc. 1000 Lowe’s Boulevard, Mooresville, North Carolina, 28117, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | LOW | Common Stock | New York Stock Exchange | US | USD | 02. Jan 1969 | |
| DB | LWE | Common Stock | Deutsche Boerse AG | DE | EUR | 02. Jan 1969 | |
| LSE | 0JVQ | Common Stock | London Stock Exchange | GB | USD | 02. Jan 1969 | |
| BMV | LOW * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 02. Jan 1969 | |
| BOVESPA | LOWC34 | BDR EACH 1 REP 0.5 COM USD0.50 | Bolsa de Valores de Sao Paulo | BR | BRL | 14. May 2019 |
Number of employees
Current staff
Industry
| Home Improvement Retail | |
| Retail |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/06/26 23:41 |
| End of day share price update: | 2019/06/26 00:00 |
| Last estimates confirmation: | 2019/06/24 |
| Last earnings filing: | 2019/06/03 |
| Last earnings reported: | 2019/05/03 |
| Last annual earnings reported: | 2019/02/01 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
