Lowe's Companies
Market Cap
US$89.3b
Last Updated
2019/12/11 23:37 UTC
Data Sources
Company Financials +
Executive Summary
Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States, Canada, and Mexico.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with mediocre balance sheet.
Similar Companies
Share Price & News
How has Lowe's Companies's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: LOW has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.9%
LOW
1.9%
US Specialty Retail
0.8%
US Market
1 Year Return
27.7%
LOW
25.2%
US Specialty Retail
17.8%
US Market
Return vs Industry: LOW exceeded the US Specialty Retail industry which returned 25.2% over the past year.
Return vs Market: LOW exceeded the US Market which returned 17.8% over the past year.
Shareholder returns
| LOW | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.9% | 1.9% | 0.8% |
| 30 Day | 2.8% | 3.0% | 1.8% |
| 90 Day | 3.3% | 6.7% | 4.1% |
| 1 Year | 30.3%27.7% | 27.2%25.2% | 20.4%17.8% |
| 3 Year | 69.5%60.0% | 36.7%29.6% | 45.9%36.4% |
| 5 Year | 95.1%78.4% | 48.5%35.8% | 68.1%49.6% |
Price Volatility Vs. Market
How volatile is Lowe's Companies's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall St
An Intrinsic Calculation For Lowe's Companies, Inc. (NYSE:LOW) Suggests It's 26% Undervalued2 weeks ago | Simply Wall St
Lowe's Companies, Inc. Analysts Are Pretty Bullish On The Stock After Recent Results3 weeks ago | Simply Wall St
Is There Now An Opportunity In Lowe's Companies, Inc. (NYSE:LOW)?Valuation
Is Lowe's Companies undervalued compared to its fair value and its price relative to the market?
26.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LOW ($117.66) is trading below our estimate of fair value ($160.46)
Significantly Below Fair Value: LOW is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: LOW is poor value based on its PE Ratio (31.5x) compared to the Specialty Retail industry average (16x).
PE vs Market: LOW is poor value based on its PE Ratio (31.5x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: LOW is poor value based on its PEG Ratio (2.6x)
Price to Book Ratio
PB vs Industry: LOW is overvalued based on its PB Ratio (36.8x) compared to the US Specialty Retail industry average (1.5x).
Next Steps
Future Growth
How is Lowe's Companies forecast to perform in the next 1 to 3 years based on estimates from 30 analysts?
12.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LOW's forecast earnings growth (12.3% per year) is above the savings rate (1.7%).
Earnings vs Market: LOW's earnings (12.3% per year) are forecast to grow slower than the US market (14.2% per year).
High Growth Earnings: LOW's earnings are forecast to grow, but not significantly.
Revenue vs Market: LOW's revenue (3% per year) is forecast to grow slower than the US market (7.4% per year).
High Growth Revenue: LOW's revenue (3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: LOW's Return on Equity is forecast to be very high in 3 years time (416.2%).
Next Steps
Past Performance
How has Lowe's Companies performed over the past 5 years?
2.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LOW has a large one-off loss of $1.6B impacting its November 1 2019 financial results.
Growing Profit Margin: LOW's current net profit margins (4.1%) are lower than last year (5.2%).
Past Earnings Growth Analysis
Earnings Trend: LOW's earnings have grown by 2.8% per year over the past 5 years.
Accelerating Growth: LOW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: LOW had negative earnings growth (-20.2%) over the past year, making it difficult to compare to the Specialty Retail industry average (3.8%).
Return on Equity
High ROE: Whilst LOW's Return on Equity (119.89%) is outstanding, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Lowe's Companies's financial position?
Financial Position Analysis
Short Term Liabilities: LOW's short term assets ($15.7B) exceed its short term liabilities ($15.1B).
Long Term Liabilities: LOW's short term assets ($15.7B) do not cover its long term liabilities ($22.2B).
Debt to Equity History and Analysis
Debt Level: LOW's debt to equity ratio (704.5%) is considered high.
Reducing Debt: LOW's debt to equity ratio has increased from 106% to 704.5% over the past 5 years.
Debt Coverage: LOW's debt is well covered by operating cash flow (20.2%).
Interest Coverage: LOW's interest payments on its debt are well covered by EBIT (9.6x coverage).
Balance Sheet
Inventory Level: LOW has a high level of physical assets or inventory.
Debt Coverage by Assets: LOW's debt is not covered by short term assets (assets are 0.9x debt).
Next Steps
Dividend
What is Lowe's Companies's current dividend yield, its reliability and sustainability?
1.87%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Lowe's Companies before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: LOW's dividend (1.87%) is higher than the bottom 25% of dividend payers in the US market (1.43%).
High Dividend: LOW's dividend (1.87%) is low compared to the top 25% of dividend payers in the US market (3.72%).
Stability and Growth of Payments
Stable Dividend: LOW's dividends per share have been stable in the past 10 years.
Growing Dividend: LOW's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (55.1%), LOW's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: LOW's dividends in 3 years are forecast to be well covered by earnings (35.6% payout ratio).
Next Steps
Management
What is the CEO of Lowe's Companies's salary, the management and board of directors tenure and is there insider trading?
2.9yrs
Average management tenure
CEO
Marvin Ellison (54yo)
1.4yrs
Tenure
US$14,302,791
Compensation
Mr. Marvin R. Ellison has been a Director of FedEx Corporation since 2014. Mr. Ellison serves as the President, Chief Executive Officer and Director of Lowe’s Companies, Inc since July 2, 2018. Mr. Ellison ...
CEO Compensation Analysis
Compensation vs Market: Marvin's total compensation ($USD14.30M) is above average for companies of similar size in the US market ($USD10.94M).
Compensation vs Earnings: Insufficient data to compare Marvin's compensation with company performance.
Management Age and Tenure
2.9yrs
Average Tenure
53.5yo
Average Age
Experienced Management: LOW's management team is considered experienced (2.9 years average tenure).
Board Age and Tenure
4.3yrs
Average Tenure
63.5yo
Average Age
Experienced Board: LOW's board of directors are considered experienced (4.3 years average tenure).
Insider Trading
Insider Buying: LOW insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 1,356 |
| Max Price | US$112.35 |
| Entity | Individual |
| Role | Head of Human Resources Executive Vice President of Human Resources |
| Shares | 12,589 |
| Max Price | US$112.62 |
| Entity | Individual |
| Shares | 2,030 |
| Max Price | US$98.69 |
| Entity | Individual |
| Role | Chief Executive Officer President |
| Shares | 10,000 |
| Max Price | US$95.05 |
| Entity | Individual |
| Shares | 250 |
| Max Price | US$94.90 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Bill McCanless (61yo)
Executive VP
- Tenure: 4.9yrs
- Compensation: US$2.83m
Marvin Ellison (54yo)
President
- Tenure: 1.4yrs
- Compensation: US$14.30m
Jennifer Weber (52yo)
Executive Vice President of Human Resources
- Tenure: 3.8yrs
- Compensation: US$2.84m
Nelson Peace (53yo)
Senior Vice President of Administration
- Tenure: 7.9yrs
Joe McFarland (49yo)
Executive Vice President of Stores
- Tenure: 1.3yrs
- Compensation: US$3.74m
Dave Denton (54yo)
Executive VP
- Tenure: 0yrs
- Compensation: US$3.11m
Jocelyn Wong
Senior VP & Chief Marketing Officer
- Tenure: 2.9yrs
Seemantini Godbole
EVP & Chief Information Officer
- Tenure: 1.1yrs
Jeff Vining
Senior VP
- Tenure: 2.9yrs
Dan Frahm
Vice President of Corporate Communications
- Tenure: 0yrs
Board Members
Brian Rogers (64yo)
Independent Director
- Tenure: 1.5yrs
- Compensation: US$249.58k
Rick Dreiling (66yo)
Independent Chairman
- Tenure: 1.4yrs
- Compensation: US$456.66k
Sandy Cochran (61yo)
Independent Director
- Tenure: 3.9yrs
- Compensation: US$272.08k
Jim Morgan (72yo)
Independent Director
- Tenure: 4.9yrs
- Compensation: US$272.08k
Eric Wiseman (63yo)
Independent Director
- Tenure: 8.1yrs
- Compensation: US$292.08k
Bert Scott (68yo)
Independent Director
- Tenure: 4.1yrs
- Compensation: US$272.08k
Raul Alvarez (64yo)
Independent Director
- Tenure: 9.3yrs
- Compensation: US$297.08k
Laurie Douglas (55yo)
Independent Director
- Tenure: 4.6yrs
- Compensation: US$272.08k
Bray Braly (58yo)
Independent Director
- Tenure: 6.1yrs
- Compensation: US$287.08k
Marvin Ellison (54yo)
President
- Tenure: 1.4yrs
- Compensation: US$14.30m
Company Information
Lowe's Companies, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Lowe's Companies, Inc.
- Ticker: LOW
- Exchange: NYSE
- Founded: 1946
- Industry: Home Improvement Retail
- Sector: Retail
- Market Cap: US$89.279b
- Shares outstanding: 766.48m
- Website: https://www.lowes.com
Number of Employees
Location
- Lowe's Companies, Inc.
- 1000 Lowe’s Boulevard
- Mooresville
- North Carolina
- 28117
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LOW | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1969 |
| 0JVQ | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1969 |
| LWE | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1969 |
| LOW * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1969 |
| LWE | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Jan 1969 |
| LOWE | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Jan 1969 |
| LOWC34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 1 REP 0.5 COM USD0.50 | BR | BRL | May 2019 |
Biography
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 ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/12/11 23:37 |
| End of Day Share Price | 2019/12/11 00:00 |
| Earnings | 2019/11/01 |
| Annual Earnings | 2019/02/01 |
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.