Lowe's Companies
Market Cap
US$71.2b
Last Updated
2020/04/09 04:39 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
Solid track record established dividend payer.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
13.9%
LOW
15.7%
US Specialty Retail
9.4%
US Market
1 Year Return
-18.0%
LOW
-20.9%
US Specialty Retail
-6.8%
US Market
Return vs Industry: LOW exceeded the US Specialty Retail industry which returned -25.2% over the past year.
Return vs Market: LOW underperformed the US Market which returned -10% over the past year.
Shareholder returns
| LOW | Industry | Market | |
|---|---|---|---|
| 7 Day | 13.9% | 15.7% | 9.4% |
| 30 Day | -9.3% | -13.6% | -3.9% |
| 90 Day | -22.0% | -26.3% | -16.5% |
| 1 Year | -16.5%-18.0% | -19.7%-20.9% | -4.8%-6.8% |
| 3 Year | 23.3%16.4% | 9.4%4.0% | 23.4%15.2% |
| 5 Year | 39.4%27.4% | 8.8%0.1% | 41.3%25.7% |
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
2 weeks ago | Simply Wall St
US$123: That's What Analysts Think Lowe's Companies, Inc. (NYSE:LOW) Is Worth After Its Latest Results3 weeks ago | Simply Wall St
A Sliding Share Price Has Us Looking At Lowe's Companies, Inc.'s (NYSE:LOW) P/E Ratio4 weeks ago | Simply Wall St
Marvin Ellison Is The President of Lowe's Companies, Inc. (NYSE:LOW) And They Just Spent US$1.0m On SharesValuation
Is Lowe's Companies undervalued compared to its fair value and its price relative to the market?
33.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LOW ($90.96) is trading below our estimate of fair value ($140.24)
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 (16.6x) compared to the Specialty Retail industry average (7.5x).
PE vs Market: LOW is poor value based on its PE Ratio (16.6x) compared to the US market (13x).
Price to Earnings Growth Ratio
PEG Ratio: LOW is poor value based on its PEG Ratio (2x)
Price to Book Ratio
PB vs Industry: LOW is overvalued based on its PB Ratio (35.2x) compared to the US Specialty Retail industry average (0.8x).
Next Steps
Future Growth
How is Lowe's Companies forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?
8.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LOW's forecast earnings growth (8.4% per year) is above the savings rate (1.7%).
Earnings vs Market: LOW's earnings (8.4% per year) are forecast to grow slower than the US market (13.3% per year).
High Growth Earnings: LOW's earnings are forecast to grow, but not significantly.
Revenue vs Market: LOW's revenue (2.3% per year) is forecast to grow slower than the US market (7% per year).
High Growth Revenue: LOW's revenue (2.3% 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 (343.9%).
Next Steps
Past Performance
How has Lowe's Companies performed over the past 5 years?
4.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LOW has high quality earnings.
Growing Profit Margin: LOW's current net profit margins (5.9%) are higher than last year (3.3%).
Past Earnings Growth Analysis
Earnings Trend: LOW's earnings have grown by 4.2% per year over the past 5 years.
Accelerating Growth: LOW's earnings growth over the past year (83.8%) exceeds its 5-year average (4.2% per year).
Earnings vs Industry: LOW earnings growth over the past year (83.8%) exceeded the Specialty Retail industry 6.7%.
Return on Equity
High ROE: Whilst LOW's Return on Equity (217.09%) is outstanding, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Lowe's Companies's financial position?
Financial Position Analysis
Short Term Liabilities: LOW's short term assets ($15.3B) exceed its short term liabilities ($15.2B).
Long Term Liabilities: LOW's short term assets ($15.3B) do not cover its long term liabilities ($22.3B).
Debt to Equity History and Analysis
Debt Level: LOW's debt to equity ratio (944.3%) is considered high.
Reducing Debt: LOW's debt to equity ratio has increased from 114.1% to 944.3% over the past 5 years.
Debt Coverage: LOW's debt is well covered by operating cash flow (23.1%).
Interest Coverage: LOW's interest payments on its debt are well covered by EBIT (9.5x coverage).
Balance Sheet
Next Steps
Dividend
What is Lowe's Companies's current dividend yield, its reliability and sustainability?
2.33%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: LOW's dividend (2.42%) is higher than the bottom 25% of dividend payers in the US market (1.93%).
High Dividend: LOW's dividend (2.42%) is low compared to the top 25% of dividend payers in the US market (5.46%).
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 reasonably low payout ratio (38.8%), LOW's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: LOW's dividends in 3 years are forecast to be well covered by earnings (34% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.5yrs
Average management tenure
CEO
Marvin Ellison (54yo)
1.75s
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 about average for companies of similar size in the US market ($USD11.79M).
Compensation vs Earnings: Insufficient data to compare Marvin's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.75yrs | US$14.30m | 0.016% $11.1m | |
| Executive VP | no data | US$3.11m | 0.0043% $3.1m | |
| Executive VP | 5.25yrs | US$2.83m | 0.0063% $4.5m | |
| Executive Vice President of Human Resources | 4.08yrs | US$2.84m | 0.0039% $2.8m | |
| Executive Vice President of Stores | 1.67yrs | US$3.74m | 0.0036% $2.6m | |
| Executive VP & Chief Information Officer | 1.42yrs | no data | 0.0033% $2.4m | |
| Senior Vice President of Administration | 8.25yrs | no data | no data | |
| Senior VP | 3.25yrs | no data | no data | |
| Vice President of Corporate Communications | no data | no data | no data | |
| Executive VP and Chief Brand & Marketing Officer | 0.17yr | no data | 0.0014% $1.0m |
2.5yrs
Average Tenure
52.5yo
Average Age
Experienced Management: LOW's management team is considered experienced (2.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.75yrs | US$14.30m | 0.016% $11.1m | |
| Independent Director | 1.83yrs | US$249.58k | 0.0013% $940.2k | |
| Independent Chairman | 1.75yrs | US$456.66k | no data | |
| Independent Director | 4.25yrs | US$272.08k | 0.00020% $142.5k | |
| Independent Director | 5.25yrs | US$272.08k | no data | |
| Independent Director | 8.42yrs | US$292.08k | no data | |
| Independent Director | 4.42yrs | US$272.08k | no data | |
| Independent Director | 9.67yrs | US$297.08k | no data | |
| Independent Director | 4.92yrs | US$272.08k | no data | |
| Independent Director | 6.42yrs | US$287.08k | no data |
4.7yrs
Average Tenure
63.5yo
Average Age
Experienced Board: LOW's board of directors are considered experienced (4.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: LOW insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$71.229b
- Shares outstanding: 754.95m
- 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, 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/09 04:39 |
| End of Day Share Price | 2020/04/08 00:00 |
| Earnings | 2020/01/31 |
| Annual Earnings | 2020/01/31 |
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.