Lowe's (LOW) AI Stock Analysis

• Market Cap: $126.41B
• Dividend Yield: 2.05%
• Average Volume (3M): 2.52M
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.85
• Revenue Growth: -2.52%
• EPS Growth: -2.98%
• Country: US
• Employees: 161,000
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Home Improvement
• EPS (TTM): 2.92
• Shares Outstanding: 560,437,700
• 10 Day Avg. Volume: 2,623,847
• 30 Day Avg. Volume: 2,517,602
• PEG Ratio: -16.57
• Price to Book (P/B): -9.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.09
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 0.47
• Enterprise Value/Gross Profit: 5.65
• Enterprise Value/Ebitda: 3.19
• 1Y Price Target: $261.90
• Price Target Upside: 15.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 24

• Rating: 63 Neutral
• Price Target: $241.00 ▲(6.26%Upside)

Lowe's primary strengths lie in its profitability and strategic initiatives, particularly in Pro sales and online growth. However, the negative equity and revenue decline weigh heavily on its financial performance. Technical analysis and valuation present a mixed but stable outlook. The earnings call suggests potential for positive future developments, with strategic moves that could mitigate current challenges.

Positive Factors

Earnings Performance

1Q came in slightly better than expected, indicating a strong start to the year for the company.

Online Marketplace

An online marketplace provides LOW with a new lever to fund investments in Pro and supply chain.

Strategic Initiatives

The acquisition of Artisan Design Group is seen as a significant opportunity, expanding Lowe's reach and providing access to a new customer base.

Negative Factors

Growth Challenges

2Q outlook for same-store sales is slightly below prior expectations, suggesting potential challenges in maintaining growth momentum.

Sales Performance

Lowe’s appeared to be weaker than Home Depot, with 29% of locations reporting worse sales compared to last year.

Share Repurchase

LOW suspending FY25 share repurchase to accommodate the acquisition is expected to be modestly dilutive in FY25.

Lowe's Business Overview & Revenue Model

Company Description

Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States and internationally. The company offers a line of products for construction, maintenance, repair, remodeling, and decorating. It provides home improvement products, such as appliances, seasonal and outdoor living, lawn and garden, lumber, kitchens and bath, tools, paint, millwork, hardware, flooring, rough plumbing, building materials, decor, lighting, and electrical. 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 brand products to homeowners, renters, and professional customers. As of January 28, 2022, it operated 1,971 home improvement and hardware stores. The company also sells its products through websites comprising Lowes.com and Lowesforpros.com; and through mobile applications. Lowe's Companies, Inc. was founded in 1921 and is based in Mooresville, North Carolina.

How the Company Makes Money

Lowe's generates revenue primarily through the sale of home improvement products and related services across its extensive network of retail stores and online platforms. The company's key revenue streams include product sales in categories such as lumber, hardware, electrical, plumbing, and seasonal outdoor living. Additionally, Lowe's offers installation services for certain products like flooring, kitchen appliances, and HVAC systems. The company also earns money through its Pro segment, which provides tailored services and bulk pricing to professional customers such as contractors and repairmen. Strategic partnerships with suppliers and exclusive brands further enhance Lowe's product offerings and contribute to its earnings. Lowe's online sales channel complements its physical stores, allowing customers to shop conveniently from home with options for delivery or in-store pickup.

Lowe's Financial Statement Overview

Summary

Lowe's demonstrates strong profitability with high EBIT and EBITDA margins, and efficient cash generation. However, concerns arise from declining revenue, negative stockholders' equity, and high leverage, suggesting financial instability. Despite these challenges, the company's cash flow remains solid.

Income Statement

Lowe's shows solid gross and net profit margins with the TTM gross profit margin at 33.4% and net profit margin at 8.2%. However, revenue has declined over the past year, leading to a negative revenue growth rate of -13.7%. Despite this, the company maintains strong EBIT and EBITDA margins of 12.4% and 14.4% respectively, indicating operational efficiency.

Balance Sheet

Lowe's balance sheet reveals concerns with a negative stockholders' equity, leading to a negative equity ratio. The debt-to-equity ratio is not meaningful due to negative equity, highlighting high leverage and potential financial instability. Return on equity cannot be calculated accurately, but the company maintains a robust asset base.

Cash Flow

The cash flow statement indicates a stable free cash flow with a slight decrease in recent periods, but a strong operating cash flow to net income ratio of 1.28 in the TTM reflects efficient cash generation. The free cash flow to net income ratio of 0.98 supports this, though free cash flow growth has been inconsistent.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	83.67B	86.38B	97.06B	96.25B	89.60B
Gross Profit	27.88B	28.84B	32.26B	32.06B	29.57B
EBITDA	12.60B	13.57B	12.18B	13.99B	11.24B
Net Income	6.96B	7.73B	6.44B	8.44B	5.83B
Balance Sheet
Total Assets	43.10B	41.80B	43.71B	44.64B	46.73B
Cash, Cash Equivalents and Short-Term Investments	2.13B	921.00M	1.73B	1.40B	5.20B
Total Debt	39.68B	40.15B	37.99B	29.38B	26.21B
Total Liabilities	57.33B	56.84B	57.96B	49.46B	45.30B
Stockholders Equity	-14.23B	-15.05B	-14.25B	-4.82B	1.44B
Cash Flow
Free Cash Flow	7.70B	6.18B	6.76B	8.26B	9.26B
Operating Cash Flow	9.63B	8.14B	8.59B	10.11B	11.05B
Investing Cash Flow	-1.74B	-1.90B	-1.31B	-1.65B	-1.89B
Financing Cash Flow	-7.05B	-6.67B	-7.05B	-12.02B	-5.19B

Lowe's Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 226.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOW, the sentiment is Positive. The current price of 226.8 is above the 20-day moving average (MA) of 222.80, above the 50-day MA of 222.66, and below the 200-day MA of 240.56, indicating a neutral trend. The MACD of 0.87 indicates Negative momentum. The RSI at 56.69 is Neutral, neither overbought nor oversold. The STOCH value of 86.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LOW.

Lowe's Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSCO	79 Outperform	$31.46B	29.16	45.34%	1.52%	2.96%	-2.02%
TJX	77 Outperform	$141.06B	29.81	60.36%	1.23%	3.79%	5.23%
EBAY	77 Outperform	$37.54B	19.46	36.48%	1.38%	2.04%	-15.61%
HD	72 Outperform	$371.20B	25.31	299.52%	2.42%	7.33%	-1.19%
FND	67 Neutral	$8.47B	42.29	9.74%	―	2.96%	-9.49%
Sector *	63 Neutral	$17.18B	10.68	-8.50%	2.94%	1.62%	-25.72%
LOW	63 Neutral	$126.41B	18.68	-51.07%	2.05%	-2.52%	-2.98%

Lowe's Corporate Events

Lowe’s Annual Shareholder Meeting Outcomes Announced

On May 30, 2025, Lowe’s held its annual shareholder meeting where various proposals were voted on. Key outcomes included the election of directors and approval of executive compensation for fiscal 2024. Additionally, Deloitte & Touche LLP was ratified as the independent registered public accounting firm for fiscal 2025. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (LOW) stock is a Buy with a $300.00 price target. To see the full list of analyst forecasts on Lowe’s stock, see the LOW Stock Forecast page.