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Lowe's Companies Inc (LOW)

Undervalued
Consumer CyclicalHome Improvement RetailUnited States

Fundamental

71

Price

$184.29

Market Cap

$105.29B

Part 1 · What the company is worth

Overview

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.

No editorial profile for this company yet

Direct competitors

Who this company fights with for the same customers

Compare

Generated on September 19, 2026 with claude-haiku-4-5 — shared with all users

P/E: 19.9Score: 65Market cap: $289.22B

The other national big-box home improvement warehouse chain in the United States, selling the same building materials, appliances and installation services to the same DIY homeowners and Pro contractors, usually from a store in the same town.

P/E: 62.0Score: 61Market cap: $6.24B

The largest US supplier of building materials to professional homebuilders and remodelers, now a head-on rival for the Pro business Lowe's bought into with Foundation Building Materials and Artisan Design Group.

P/E: 20.0Score: 77Market cap: $2.69T

Sells tools, hardware, fixtures and home goods online with next-day delivery, capturing the planned, non-urgent portion of home improvement spending before the customer ever drives to a store.

P/E: 37.7Score: 58Market cap: $853.59B

Its supercenters and website carry paint, tools, garden, storage and home goods at aggressive prices, overlapping with Lowe's on the everyday, lower-ticket half of the assortment.

Menard, Inc. (Menards)Not tracked

Privately held third big-box home improvement chain, with roughly 340 warehouse stores concentrated in the Midwest where it takes DIY and contractor spending directly away from Lowe's stores.

Ace Hardware CorporationNot tracked

A retailer-owned cooperative of several thousand neighbourhood hardware stores that competes for the same repair-and-maintenance purchases, winning the smaller, closer-to-home trip that Lowe's also wants.

Balance Sheet & Liquidity

Revenue

$90.43B

Trailing 12 months (through 7/31/2026)

Net Income

$6.64B

Trailing 12 months (through 7/31/2026)

Free Cash Flow

$7.65B

Total Equity

$-9.92B

Total Liabilities

$64.06B

Current Ratio

1.10

Interest Coverage

-

Debt/EBITDA

3.40

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseUndervalued

Fair Value

$258.00

Current Price

$184.29

Margin of Safety

+28.6%

Fair Value Range

$184.38 - $331.61

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$251.09
Discounted cash flow (DCF):$370.50
Earnings multiple (P/E):$182.20
Graham growth formula:$272.54
Earnings power value (EPV):$160.92
Justified P/B:$101.99
Dividend discount (Gordon):$97.40
P/FFO, funds from operations:$252.33
Mid-cycle earnings:$221.29
Revenue multiple:$276.80
Analyst Consensus:Buy (28B / 12H / 1S)
Last Earnings Surprise:+3.12%

Valuation Metrics

P/E Ratio

15.58

ROE

-67.1%

P/B Ratio

-

P/FCF

14.77

Gross Margin

33.1%

ROIC

23.4%

Profitability Radar

Value Creation (Economic Moat)

ROIC

23.4%

WACC

6.5%

ROIC − WACC

+17.0 pp

ROIC exceeds the cost of capital — the company is creating value for shareholders.

Fundamental Analysis Criteria

Passed (17)

  • EPS shows upward trend
  • EPS CAGR 10.84%
  • Price CAGR 10.72%
  • ROIC 23.4%
  • Gross Margin 33.1%
  • P/FCF 14.77
  • Operating Margin 11.4%
  • Positive Free Cash Flow
  • Current Ratio
  • Debt/EBITDA
  • Return on Tangible Assets
  • ROE 264.5%
  • Analyst Consensus 68% Buy
  • PEG Ratio 1.79
  • Earnings Quality (OCF/NI) 1.39
  • Share Dilution -1.3%
  • Piotroski F-Score 6/9

Failed (6)

  • CapEx intensity
  • Low reliance on intangibles
  • DCF valuation (Overvalued)
  • Revenue Growth 5Y -0.8%
  • Earnings Surprise avg 1.8%
  • Net Margin Trend 7.3% vs 8.2%

Unavailable (5)

  • P/B Ratio NaN
  • Dividend Payout NaN%
  • Debt/Equity ratio
  • Interest Coverage
  • Price below Graham Number

Piotroski F-Score

6/9

Mixed signals: some areas need attention

score
criteria

Earnings Quality

1.39

High quality: earnings backed by cash

Share Dilution

-1.3%

Buying back shares. Shareholder friendly

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. Marvin R. EllisonPresident, CEO & Chairman60
Mr. Brandon J. Sink CPAExecutive VP & CFO49
Ms. Seemantini GodboleExecutive VP and Chief Information & AI Officer55
Mr. William P. BoltzExecutive Vice President of Merchandising62
Mr. Joseph Michael McFarland IIIExecutive Vice President of Pro & Home Services55
Mr. Dan Clayton Griggs Jr.Senior VP of Tax & Chief Accounting Officer47
Ms. Shelly HubbardVice President of Investor Relations-
Ms. Juliette Williams Pryor J.D.Executive VP, Chief Legal Officer & Corporate Secretary60
Mr. Luis A. Avila Esq.Senior VP of Corporate Governance & Chief Compliance Officer-
Ms. Jennifer E. WilsonExecutive VP & Chief Marketing Officer-

Audit Risk

4

Board Risk

5

Compensation Risk

5

Shareholder Rights Risk

3

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-03-23

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-08-27

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-09-02

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for LOW, sourced from Markets Gazette.

  • 8/19/2026NEGATIVE
    Lowe's Companies riduce la guidance 2026 dopo ricavi trimestre sotto il consensus

    Lowe's Companies Inc. is trading weaker in pre-market activity following a reduction in its 2026 financial guidance and a quarterly performance that only partially met consensus expectations. The US retail giant's announcement signals potential headwinds for future revenue and profitability. Investors will be closely monitoring management's strategies to navigate these challenges and the impact on the company's market position within the home improvement sector.

  • 6/11/2026NEUTRAL
    Here's How Much $100 Invested In Lowe's Companies 20 Years Ago Would Be Worth Today

    An investment of $100 in Lowe's Companies Inc. (LOW) twenty years ago would have grown to approximately $1,350 today, assuming reinvestment of dividends. This represents a compound annual growth rate (CAGR) of roughly 13.5%. The analysis highlights the long-term wealth creation potential of consistent dividend-paying stocks within the retail sector. While past performance is not indicative of future results, this historical data provides context for the stock's enduring value proposition and its ability to generate shareholder returns over extended periods.

  • 5/20/2026NEUTRAL
    Lowe's Gears Up For Q1 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts

    Lowe's is scheduled to release its first-quarter earnings on May 20th, with analysts projecting earnings per share of $2.97. While recent analyst actions show a mix of upgrades and maintained ratings, price targets from Wall Street's most accurate analysts range between $250 and $285. Telsey Advisory Group maintained an 'Outperform' rating in February, while OTR Global and Gordon Haskett upgraded their ratings to 'Positive' and 'Buy' respectively. This upcoming earnings report will be crucial for investors to assess the company's performance against expectations and the analyst community's sentiment.

  • 4/27/2026POSITIVE
    $100 Invested In Lowe's Companies 15 Years Ago Would Be Worth This Much Today

    An investment of $100 in Lowe's Companies Inc. 15 years ago would have yielded a significant return, illustrating the company's long-term growth and resilience. While specific figures are not provided in the title, such historical performance analysis typically highlights substantial capital appreciation and dividend reinvestment benefits. This suggests Lowe's has consistently outperformed market benchmarks over the extended period, making it a potentially attractive option for long-term investors seeking stable growth in the home improvement retail sector.

  • 4/15/2026NEUTRAL
    Here's How Much You Would Have Made Owning Lowe's Companies Stock In The Last 15 Years

    An analysis of Lowe's Companies Inc. stock reveals that an investment made 15 years ago would have yielded significant returns. While the exact percentage is not provided in the snippet, the title suggests a positive historical performance. This historical data, however, does not offer immediate trading insights for current market conditions or future outlook. Investors should consider this information as a retrospective performance indicator rather than a forward-looking trading signal.

  • 3/31/2026POSITIVE
    $1000 Invested In Lowe's Companies 15 Years Ago Would Be Worth This Much Today

    An investment of $1000 in Lowe's Companies Inc. 15 years ago would have grown to a substantial amount today, reflecting the company's long-term performance. While specific figures are not provided in this snippet, such an analysis typically highlights significant capital appreciation and dividend reinvestment. This historical performance suggests robust business operations, effective management, and a favorable market position within the home improvement retail sector. Investors considering Lowe's should note this historical context as an indicator of potential future returns, though past performance is not indicative of future results.

  • 2/25/2026NEGATIVE
    What's Going On With Lowe's Stock Wednesday?

    Lowe's stock experienced a notable decline on Wednesday, despite the retailer reporting a fourth-quarter earnings beat. The market's negative reaction was primarily driven by the company's conservative outlook, which cited persistent headwinds in the housing market as a key reason for caution. Investors appear to have prioritized the prudent future guidance over the positive results of the recently concluded quarter, signaling concerns about the near-term growth trajectory for the home improvement sector.

  • 2/25/2026NEGATIVE
    Housing Stocks Hit Hard by Gloomy Outlooks, Trump’s Snub

    The US housing market sector experienced a significant downturn on Wednesday, with stocks of companies exposed to the real estate market plummeting. Investor sentiment was heavily impacted by the gloomy outlooks presented by home improvement giants such as Lowe's Cos Inc., which painted a pessimistic picture for the future. Further uncertainty arose from the notable absence of any housing policy updates during President Donald Trump's State of the Union speech. This confluence of factors led market participants to revise their expectations downwards, signaling a potential period of weakness for the sector.

via Markets Gazette