Stock · LOW · Consumer Cyclical

Lowe's Companies Inc

United States · Large Cap · listed since 1985 · Revenue 12 mo. $90.4B

Price as of 11/06/2026

StockScorer score
5.5
of 10 6 of 11 points Medium Match To the score
Price
$224.55
1 Y −12.5%
Market cap
$127.2B
Phase
Mature
core business profitable, revenue barely moving
Revenue −3.8% a year (3 years)EBIT margin 11.8%Payout 30.3% of operating cash flow

Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States and Canada.

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Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States and Canada. It provides a line of products for construction, maintenance, repair, remodeling, and decorating. The company also offers home improvement products, such as appliances, seasonal and outdoor living, lumber, lawn and garden, kitchens and bath, hardware, building materials, millwork, paint, rough plumbing, tools, electrical, flooring, and décor. In addition, it provides installation services through independent contractors in various product categories; and extended protection plans and repair services. Further, the company provides design, distribution, and installation services for interior surface finishes to home builders and property managers. It sells its national brand-name merchandise and private brand products to professional customers, individual homeowners, and renters. The company serves its products through Lowes.com website, mobile applications, retail home improvement stores and outlet stores, and its branches. Lowe's Companies, Inc. was founded in 1921 and is based in Mooresville, North Carolina.

Original text from the data provider

Summary

Lowe's Companies Inc is around the middle of the Consumer Cyclical sector overall

44.9 of 100

Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.

Analysis

What the price requires

The price requires 5.7% FCF growth a year: more than over the last 5 years, less than over the last 10 years.

If free cash flow stays at €6.9B (2026), it supports €76.3B. The remaining €37.8B of the market value assume it grows 5.7% a year for 10 years and not at all afterwards.

Required FCF growth per year

5.7%

no growth afterwards

Market value breakdown€114.1B market value, price as of 11/06/2026

€76.3B without growth
€37.8B priced-in growth
  • 5 yrs achieved −3.9%
  • 10 yrs achieved 7.6%
  • priced in 5.7%

Valuation against its own history

Price to operating cash flow 13.6×, within its usual range.

Middle half of 20 quarters: 13.4× to 15.0×, median 14.1×.

Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.

3 signs support the expectation, 1 speaks against it.

What supports it

with respect to the priced-in expectation

  • High return on capital every year ROCE at least 20.0% (10 years)
  • Low capital needs capex median 2.0% of revenue (10 years)
  • Steady FCF margin at least 3.9%, range 6.4 pp (10 years)

What speaks against it

with respect to the priced-in expectation

  • EBIT margin falling for three quarters −0.8 pp over the last four reports

Since the last quarter

Q2 → Q3 2026

Mostly worse than the previous quarter: 1 of 1 change for the worse.

  • FCF, 12 mo.$7.6B → $7.0B−8.1%worse

6 more unchanged: Revenue, 12 mo., Gross margin, EBIT margin, FCF margin, Net debt, Shares outstanding

Derivation

How the sector comparison is derived

Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.

Price as of 11/06/2026.

Profitability48.7around the middleEarns about as much as the sector.
MetricStockSector medianPosition in sector
Return on equity−64.84%11.07%Rank 3
Return on capital (Greenblatt)42.03%17.91%Rank 83
EBIT margin11.77%10.89%Rank 54
FCF margin8.87%8.07%Rank 56
Gross margin33.48%34.00%Rank 48
Growth35.4below the middleGrows more slowly than the sector: Sustainable growth (ROE × retained earnings) 2.56%, sector 4.34%.
MetricStockSector medianPosition in sector
Revenue growth, 1 year3.12%5.10%Rank 37
Earnings growth, 3 years per year5.22%8.34%Rank 44
Earnings growth, 5 years per year8.84%15.10%Rank 36
Sustainable growth (ROE × retained earnings)2.56%4.34%Rank 25
Valuation55.9around the middleValued about like the sector.
MetricStockSector medianPosition in sector
Earnings yield5.29%4.32%Rank 61
FCF yield6.02%4.17%Rank 62
EV/saleslower is better1.981.95Rank 49
EV/EBITlower is better16.7916.88Rank 51
Momentum43.4around the middleShare price moving about like the sector.
MetricStockSector medianPosition in sector
Share price, 1 year−12.55%−4.35%Rank 38
Share price, 6 months−1.55%3.63%Rank 35
Share price, 3 months5.67%2.92%Rank 65
Distance from 52-week high−21.87%−15.83%Rank 36
Quality57.0around the middleQuality about like the sector.
MetricStockSector medianPosition in sector
Accruals (Sloan)lower is better18.34%0.39%Rank 0
Change in share countlower is better−1.31%−0.37%Rank 61
Dividend streak in years414Rank 100
Price reaction to results, market-adjusted1.79%0.16%Rank 67
Balance sheet & risk29.0below the middleMore risk than the sector: Equity ratio −18.32%, sector 40.59%.
MetricStockSector medianPosition in sector
Equity ratio−18.32%40.59%Rank 3
Net debt/EBITDAlower is better3.470.99Rank 17
Debt to equitylower is betterdoes not count towards the rank−4.590.49
Volatility, 1 yearlower is better29.79%33.42%Rank 67

Ten years in figures

Revenue from $65.0B (2017) to $86.3B (2026), 3.2% a year.

Fiscal years, amounts in USD
YearRevenue, $BEBIT marginFCF, $BSharesNet debt, $B
201765.09.0%4.5881M15.1
201868.69.6%3.9840M16.3
201971.35.6%5.0812M15.7
202072.18.8%2.8778M23.0
202189.610.8%9.3750M21.5
202296.312.6%8.3699M28.3
202397.110.5%6.8631M36.6
202486.413.4%6.2584M39.2
202583.712.5%7.7567M37.9
202686.311.8%7.7560M43.7
5.5 / 10Medium MatchStockScorer score6 of 11 points

3 of 7 StockScorer Score rules met · How the score is built

Lowe's Companies Inc mainly meets criteria in the Valuation category. Result from 18 strategies checked.

This stock · Profitability: 67%This stock · Growth: 0%This stock · Valuation: 100%This stock · Momentum: 0%Median of all stocks · Profitability: 33%Median of all stocks · Growth: 0%Median of all stocks · Valuation: 0%Median of all stocks · Momentum: 0%50%100%ProfitabilityGrowthValuationMomentumThis stockMedian of all stocks

How Lowe's Companies Inc's score is built

Lowe's Companies Inc is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.

3 of 7 rules met

6 of 11 points

  1. Free cash flow yield above the sector medianmet2 of 2 points
  2. Return on capital (Greenblatt ROC) above the sector medianmet2 of 2 points
  3. Return on equity above the sector mediannot met0 of 1 point
  4. Free cash flow margin above the sector medianmet2 of 2 points
  5. Revenue growth above 15%not met0 of 2 points
  6. 3-year earnings growth above 12% p.a.not met0 of 1 point
  7. 12-month share price more than 20 percentage points ahead of the marketnot met0 of 1 point
  8. Exclusion: financial and real estate stocksdoes not apply

Detail data

How does Lowe's Companies Inc stock perform across 18 strategies?

Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.

12 more strategies locked

With a free account, you can see the match across all strategies checked in one complete overview.

  • Earnings Quality: Accrual Check (Sloan)
  • Dividend Aristocrats & Continuity
  • Magic Formula: Value + Quality
  • PEG Strategy (inspired by Peter Lynch)
  • Undervalued Stocks: Multi-Factor Check
  • Trending Value: Value + Momentum
  • Defensive: Low Volatility
  • Acquirer's Multiple: EV/EBIT Deep Value
  • Balanced GARP
  • High-Growth / Rule of 40
  • Levermann Strategy (13 Criteria)
  • Growth Momentum (CAN SLIM principle)

Lowe's Companies Inc key metrics: P/E, P/B and equity ratio

Selected fundamental metrics for Lowe's Companies Inc.

MetricStockSector
P/E ratio18.921.6
P/B ratio−12.62.4
Return on equity (ROE)−64.8%11.1%
Equity ratio−18.3%40.6%
Debt-to-equity (D/E)−4.590.49
Dividend yield2.2%2.2%

Similar stocks in Consumer Cyclical

How comparable stocks in the same sector score in the StockScorer model.

SymbolCompanyRating
LOWLowe's Companies Incthis page
HDThe Home Depot IncLow2.7
WES.AXWesfarmers Ltdlocked
KGF.LKingfisher PLClocked
HBH.DEHornbach Holding Vz.locked
BKNGBooking Holdings Inclocked

Frequently asked questions about Lowe's Companies Inc stock

How does Lowe's Companies Inc stock (LOW) score in the StockScorer model?
Lowe's Companies Inc stock reaches a StockScorer score of 5.5 out of 10, which is a medium match with the rule-based strategies. 3 out of 7 flagship profile rules are met.
What is Lowe's Companies Inc's P/E ratio?
Lowe's Companies Inc's P/E ratio is 18.9. The Consumer Cyclical sector median is 21.6.
What sector is Lowe's Companies Inc in?
Lowe's Companies Inc is assigned to the Consumer Cyclical sector. Its rank within the sector is 44.9 out of 100: 100 means the stock leads its peer group of large and mid-cap sector stocks in every measured area.

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