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Lowe's Companies (LOW)
NYSE:LOW
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Lowe's (LOW) AI Stock Analysis

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LOW

Lowe's

(NYSE:LOW)

Rating:63Neutral
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 (LOW) vs. SPDR S&P 500 ETF (SPY)

Lowe's Business Overview & Revenue Model

Company DescriptionLowe'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 MoneyLowe'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 Key Performance Indicators (KPIs)

Any
Any
Customer Transactions
Customer Transactions
Tracks the number of purchases made by customers, indicating consumer demand, shopping frequency, and overall sales performance.
Chart InsightsLowe's customer transactions have shown a declining trend since their pandemic peak, reflecting challenges in the DIY segment and macroeconomic pressures. However, the latest earnings call highlights resilience in Pro sales and online growth, driven by strategic initiatives like the Artisan Design Group acquisition and AI-powered tools. This suggests a strategic pivot towards strengthening Pro market presence and enhancing digital capabilities, which could offset declining DIY transactions and support long-term growth despite current headwinds.
Data provided by:Main Street Data

Lowe's Earnings Call Summary

Earnings Call Date:May 21, 2025
(Q1-2025)
|
% Change Since: -1.40%|
Next Earnings Date:Aug 20, 2025
Earnings Call Sentiment Neutral
Lowe's first quarter results reflect strong Pro sales growth, recognition for customer satisfaction, and improvements in online sales and innovative initiatives. However, challenges remain with a decline in comparable sales, ongoing pressure in DIY discretionary spending, and the impact of poor weather conditions.
Q1-2025 Updates
Positive Updates
Strong Pro Sales Growth
Pro sales grew mid-single digits this quarter, reflecting successful transformation of the Pro product and service offering since 2018.
Customer Satisfaction Recognition
Lowe's earned the #1 customer satisfaction ranking among home improvement retailers from J.D. Power, highlighting improvements in customer service and technology.
Online Sales Improvement
Online sales grew by 6% in the first quarter, driven by increases in both traffic and conversion rates, supported by technology transformation and the launch of an online product marketplace.
Innovative Retail Initiatives
Lowe's launched MyLowe's, the first AI-powered Home Improvement Virtual Adviser, to enhance customer experience with step-by-step project instructions.
Artisan Design Group Acquisition
Lowe's announced the acquisition of Artisan Design Group to increase penetration in the Pro market, expected to close this quarter.
Positive Appliance Sales
Continued strength in appliance sales with growth in all major categories, supported by the widest assortment of top brands and efficient delivery capabilities.
Negative Updates
Comparable Sales Decline
Comparable sales were down 1.7% in the first quarter, affected by ongoing pressure in DIY discretionary demand and unfavorable weather conditions.
DIY Discretionary Spending Pressure
Continued pressure in DIY bigger ticket discretionary demand due to elevated mortgage rates and macroeconomic uncertainty.
Impact of Poor Weather
Unfavorable weather conditions in February affected spring sales, with comparable sales down 5.4% in February.
Company Guidance
During Lowe's Companies' first quarter 2025 earnings call, the company reported sales of $20.9 billion, with comparable sales down by 1.7%, aligning with their expectations. Despite ongoing challenges in the housing market, Lowe's achieved a mid-single-digit growth in Pro sales and a 6% increase in online sales. The company is also focusing on diversifying its global sourcing efforts, with approximately 60% of purchases originating in the U.S. and 20% in China. Lowe’s is expanding its Total Home strategy, highlighted by the acquisition of Artisan Design Group, expected to fortify their position in the $50 billion Pro market. The company maintained its fiscal 2025 outlook, projecting sales between $83.5 billion and $84.5 billion and a full-year operating margin of 12.3% to 12.4%. Diluted earnings per share are expected to be between $12.15 and $12.40. Additionally, Lowe's continues to leverage new AI capabilities with initiatives like the MyLowe's Virtual Adviser, enhancing the customer experience and driving online growth.

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
65
Positive
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
45
Neutral
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
70
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue83.67B86.38B97.06B96.25B89.60B
Gross Profit27.88B28.84B32.26B32.06B29.57B
EBITDA12.60B13.57B12.18B13.99B11.24B
Net Income6.96B7.73B6.44B8.44B5.83B
Balance Sheet
Total Assets43.10B41.80B43.71B44.64B46.73B
Cash, Cash Equivalents and Short-Term Investments2.13B921.00M1.73B1.40B5.20B
Total Debt39.68B40.15B37.99B29.38B26.21B
Total Liabilities57.33B56.84B57.96B49.46B45.30B
Stockholders Equity-14.23B-15.05B-14.25B-4.82B1.44B
Cash Flow
Free Cash Flow7.70B6.18B6.76B8.26B9.26B
Operating Cash Flow9.63B8.14B8.59B10.11B11.05B
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 Price226.80
Price Trends
50DMA
222.66
Positive
100DMA
223.47
Positive
200DMA
240.56
Negative
Market Momentum
MACD
0.87
Negative
RSI
56.69
Neutral
STOCH
86.24
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 Risk Analysis

Lowe's disclosed 25 risk factors in its most recent earnings report. Lowe's reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Lowe's Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$31.46B29.1645.34%1.52%2.96%-2.02%
77
Outperform
$141.06B29.8160.36%1.23%3.79%5.23%
77
Outperform
$37.54B19.4636.48%1.38%2.04%-15.61%
72
Outperform
$371.20B25.31299.52%2.42%7.33%-1.19%
67
Neutral
$8.47B42.299.74%2.96%-9.49%
63
Neutral
$17.18B10.68-8.50%2.94%1.62%-25.72%
63
Neutral
$126.41B18.68-51.07%2.05%-2.52%-2.98%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LOW
Lowe's
226.80
-8.45
-3.59%
EBAY
eBay
81.43
27.76
51.72%
HD
Home Depot
375.34
22.19
6.28%
TJX
TJX Companies
126.44
15.31
13.78%
TSCO
Tractor Supply
59.33
7.19
13.79%
FND
Floor & Decor Holdings
79.90
-17.46
-17.93%

Lowe's Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Lowe’s Annual Shareholder Meeting Outcomes Announced
Neutral
Jun 5, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 23, 2025