A Business at a Glance
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LOWES COMPANIES INC
LOW
$116.3B
Mkt Cap
$207.64
+2.83%
LOWES COMPANIES INC (LOW) has a current P/E ratio of 10.3, compared to its historical median P/E of 19.8. The stock is currently considered Cheap based on its historical valuation range.
LOWES COMPANIES INC (LOW) has a 5-year average return on invested capital (ROIC) of 40.6%. This indicates strong capital allocation and a potential competitive advantage.
LOWES COMPANIES INC (LOW) has a market capitalization of $116.5B. It is classified as a large-cap stock.
Yes, LOWES COMPANIES INC (LOW) pays a dividend with a trailing twelve-month yield of 2.80%. The company also returns capital through share buybacks, with a buyback yield of 1.46%.
Based on historical P/E analysis, LOWES COMPANIES INC (LOW) appears cheap. The current P/E of 10.3 is 48% below its historical median of 19.8. The estimated fair value CAGR (P/E method) is 21.3%.
LOWES COMPANIES INC (LOW) operates in the Retail-Lumber & Other Building Materials Dealers industry, within the Consumer Cyclical sector.
LOWES COMPANIES INC (LOW) reported annual revenue of $86.3 billion in its most recent fiscal year, based on SEC EDGAR filings.
Lowe's Companies, Inc. is the world's second largest home improvement retailer, operating 1,748 stores across the United States with approximately 195 million square feet of retail selling space as of January 31, 2025. The company serves three primary customer segments—professional contractors (Pro), do-it-yourself (DIY) homeowners, and renters—through an omnichannel platform that integrates in-store, online, on-site, and contact center channels to provide seamless shopping experiences. Lowe's generates revenue through the sale of home improvement products across 13 major categories (Appliances, Seasonal & Outdoor Living, Lumber, Lawn & Garden, Kitchens & Bath, Hardware, Building Materials, Millwork, Paint, Rough Plumbing, Tools, Electrical, Flooring, and Décor), complemented by installation services and extended protection plans; installed sales accounted for approximately 5% of total sales in fiscal 2024. The company operates a capital-intensive supply chain comprising over 120 distribution facilities—including regional distribution centers, flatbed distribution centers, import distribution centers, bulk distribution centers, cross-dock terminals, and fulfillment centers—enabling rapid fulfillment including same-day delivery and next-day major appliance delivery in most U.S. zip codes. Lowe's' competitive moat rests on its extensive store footprint, omnichannel capabilities, localized product assortment, private brand portfolio balanced with national brands, and direct manufacturer relationships that improve margins, while competing against national and regional warehouse chains, specialty retailers, online retailers, and general merchandise retailers. The company's Total Home strategy, updated in December 2024, focuses on five pillars: driving Pro penetration through enhanced product assortment and job site delivery, accelerating online sales via project design tools and marketplace expansion, expanding installation services through independent contractors and third-party models, creating a loyalty ecosystem via MyLowe's Rewards, and increasing space productivity through localized assortment optimization.
【Market share gains amid flat demand】 Management expects the home improvement market to remain roughly flat in 2026, with the company positioned to outperform through disciplined execution of its Total Home strategy and continued market share gains regardless of macro conditions. The company is navigating persistent headwinds including elevated mortgage rates, a lock-in effect constraining housing turnover and new home starts, and challenging residential construction conditions, though structural demand drivers remain supportive with record home equity levels and an aging housing stock averaging 44 years old. Pro customers are expected to continue outperforming DIY, with Pro backlogs remaining stable and the Pro Extended Aisle initiative driving category growth; management also anticipates gradual improvement in transaction trends in the second half of 2026 as tariff price increases cycle through. The company is investing in sales-driving initiatives tailored to value-conscious consumers, expanding fulfillment options, and scaling its MyLowe's loyalty program and AI-powered shopping assistant (MyLow), which has already achieved over 1 million customer inquiries monthly since launch one year ago. Capital expenditures are expected to reach approximately $2.5 billion in 2026, concentrated in the retail business to support strategic imperatives, while the company targets roughly $1 billion in Perpetual Productivity Improvement initiatives to offset cost pressures and support reinvestment in customer value.
| Metric | Target | Period |
|---|---|---|
| Sales | $92 billion–$94 billion | FY2026 |
| Comparable sales | flat to up 2% | FY2026 |
| Operating margin | 11.2%–11.4% | FY2026 |
| Adjusted operating margin | 11.6%–11.8% | FY2026 |
| Adjusted diluted earnings per share | $12.25–$12.75 | FY2026 |
| Capital expenditures | approximately $2.5 billion | FY2026 |
| Home improvement market | down 1% to up 1% (roughly flat) | FY2026 |
Sales (FY2026): “we are expecting 2026 sales ranging from $92 billion-$94 billion”
Comparable sales (FY2026): “with comparable sales in a range of flat to up 2%”
Operating margin (FY2026): “We expect operating margin in a range of 11.2%-11.4%”
Adjusted operating margin (FY2026): “adjusted operating margin in a range of 11.6%-11.8%”
Adjusted diluted earnings per share (FY2026): “We expect adjusted diluted earnings per share of approximately $12.25-$12.75”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2027 Earnings Call, Q3 FY2027 Earnings Call, Q2 FY2027 Earnings Call, Q2 FY2026 Earnings Call
| Metric | TTM | FY2026 | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|---|
| Revenue | 105.2B | 86.3B | 83.7B | 86.4B | 97.1B | 96.3B |
| Net Income | 8.4B | 6.6B | 6.9B | 7.7B | 6.4B | 8.4B |
| EPS | $15.00 | $11.85 | $12.23 | $13.20 | $10.17 | $12.04 |
| Free Cash Flow | 9.9B | 7.7B | 7.7B | 6.2B | 6.8B | 8.3B |
| ROIC | 31.3% | 30.7% | 38.5% | 45.9% | 39.4% | 48.6% |
| Gross Margin | 33.5% | 33.5% | 33.3% | 33.4% | 33.2% | 33.3% |
| Debt/Equity | 0.00 | -4.26 | -2.66 | -2.41 | -2.41 | -5.22 |
| Dividends/Share | $5.81 | $4.75 | $4.55 | $4.35 | $3.95 | $3.00 |
| Operating Income | 12.8B | 10.2B | 10.5B | 11.6B | 10.2B | 12.1B |
| Operating Margin | 12.1% | 11.8% | 12.5% | 13.4% | 10.5% | 12.6% |
| ROE | 0.0% | -55.0% | -47.4% | -52.6% | -67.3% | -497.7% |
| Shares Outstanding | 561M | 560M | 567M | 584M | 631M | 698M |
LOWES COMPANIES INC passes 5 of 9 quality checks, suggesting mixed fundamentals.
LOWES COMPANIES INC trades at 10.3x trailing earnings, compared to its 15-year median P/E of 19.8x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 13.0x vs a median of 18.4x. The company's 5-year average ROIC is 40.6% with a gross margin of 33.3%. Total shareholder yield (dividends + buybacks) is 4.3%. At current prices, the estimated annualized return to fair value is +17.4%.
LOWES COMPANIES INC (LOW) has a net profit margin of 7.7%. This is a modest margin.
LOWES COMPANIES INC (LOW) generated $7.7 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
LOWES COMPANIES INC (LOW) reported earnings per share (EPS) of $11.85 in its most recent fiscal year.
LOWES COMPANIES INC (LOW) has a return on equity (ROE) of -55.0%. A negative ROE may indicate losses or negative equity.
LOWES COMPANIES INC (LOW) has a 5-year average gross margin of 33.3%. This indicates decent pricing power.
The Ledger Terminal provides 19 years of financial data for LOWES COMPANIES INC (LOW), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
LOWES COMPANIES INC (LOW) has a book value per share of $-17.71, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects the home improvement market to remain roughly flat in 2026, with the company positioned to outperform through disciplined execution of its Total Home strategy and continued market share gains regardless of macro conditions. The company is navigating persistent headwinds including elevated mortgage rates, a lock-in effect constraining housing turnover and new home starts, and challenging residential construction conditions, though structural demand drivers remain supportive with record home equity levels and an aging housing stock averaging 44 years old. Pro customers are expected to continue outperforming DIY, with Pro backlogs remaining stable and the Pro Extended Aisle initiative driving category growth; management also anticipates gradual improvement in transaction trends in the second half of 2026 as tariff price increases cycle through. The company is investing in sales-driving initiatives tailored to value-conscious consumers, expanding fulfillment options, and scaling its MyLowe's loyalty program and AI-powered shopping assistant (MyLow), which has already achieved over 1 million customer inquiries monthly since launch one year ago. Capital expenditures are expected to reach approximately $2.5 billion in 2026, concentrated in the retail business to support strategic imperatives, while the company targets roughly $1 billion in Perpetual Productivity Improvement initiatives to offset cost pressures and support reinvestment in customer value.
Based on recent SEC filings and earnings calls, LOWES COMPANIES INC (LOW) has provided the following forward guidance: Sales: $92 billion–$94 billion (FY2026); Comparable sales: flat to up 2% (FY2026); Operating margin: 11.2%–11.4% (FY2026); Adjusted operating margin: 11.6%–11.8% (FY2026); Adjusted diluted earnings per share: $12.25–$12.75 (FY2026), plus 2 additional metrics.
Capital expenditures (FY2026): “We also expect capital expenditures of approximately $2.5 billion for the year”
Home improvement market (FY2026): “we forecast the home improvement market to be roughly flat this year in a range of down 1% to up 1%”
No recent press releases.