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Lowe's
(NYSE:LOW)
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Rating:56Neutral
Price Target:
$214.00
▼(-14.98% Downside)
Action:Reiterated
Date:06/03/26
The score is held back most by balance-sheet leverage/negative equity and weak technicals (broad downtrend). Offsetting factors include resilient profitability and cash generation, a constructive but cautious guidance outlook, and a reasonable valuation with a solid dividend yield.
Positive Factors
Strong cash generation
Sustained high operating and free cash flow provides durable financial flexibility: funds capex for Total Home strategy, supports dividends and bond repayments, and enables deleveraging targets. Even with recent FCF growth weakness, absolute cash levels back multi-year strategic execution.
Negative Factors
High leverage & negative equity
Negative shareholder equity and heavy debt materially weaken capital structure and reduce buffer against downturns. This persistent leverage constraint limits financial flexibility, raises refinancing risks, and increases dependence on cash generation to meet obligations across economic cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained high operating and free cash flow provides durable financial flexibility: funds capex for Total Home strategy, supports dividends and bond repayments, and enables deleveraging targets. Even with recent FCF growth weakness, absolute cash levels back multi-year strategic execution.
Read all positive factors
Lowe's Key Performance Indicators (KPIs)
Any
Customer Transactions
Tracks the number of purchases made by customers, indicating consumer demand, shopping frequency, and overall sales performance.
Tracks the number of purchases made by customers, indicating consumer demand, shopping frequency, and overall sales performance.
Data provided by:
The Fly
The FlyLowe's (LOW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$124.75B
Dividend Yield1.94%
Average Volume (3M)3.15M
Price to Earnings (P/E)18.6
Beta (1Y)0.71
Revenue Growth6.24%
EPS Growth-2.12%
CountryUS
Employees300,000
SectorConsumer Cyclical
Sector Strength84
IndustryHome Improvement
Share Statistics
EPS (TTM)11.84
Shares Outstanding560,707,030
10 Day Avg. Volume3,197,293
30 Day Avg. Volume3,147,340
Financial Highlights & Ratios
PEG Ratio-7.25
Price to Book (P/B)-15.05
Price to Sales (P/S)1.73
P/FCF Ratio19.51
Enterprise Value/Market Cap1.31
Enterprise Value/Revenue1.85
Enterprise Value/Gross Profit5.47
Enterprise Value/Ebitda13.46
Forecast
1Y Price Target
$263.90Price Target Upside4.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering22
EPS Forecast (FY)12.47
Revenue Forecast (FY)$93.13B
Lowe's Business Overview & Revenue Model
Company Description
Lowe's Companies, Inc., together with its various subsidiary entities, operates as a prominent home improvement retailer serving both the United States and international markets. The company supplies a broad spectrum of items essential for constru...
How the Company Makes Money
Lowe’s makes money primarily by selling home improvement and related merchandise to customers through its retail stores and online channels. Its main revenue stream is net sales from product categories such as appliances, building materials, tools...
Lowe's Earnings Call Summary
Earnings Call Date:May 20, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Positive
The call conveyed a cautiously constructive tone: Lowe's reported solid top-line growth (including a 10.3% increase in sales driven partly by acquisitions), positive comparable sales (+0.6%), strong online and Pro momentum, meaningful free cash flow generation and progress on productivity and AI initiatives. However, the quarter included margin compression (gross margin -70 bps, adjusted operating margin -43 bps), a decline in transactions, inventory and cost pressures linked to acquisitions, tariffs and fuel, and guidance that flags near-term margin and EPS pressure for Q2. Management reaffirmed FY26 guidance and emphasized strategic investments (Total Home, Pro, Home Services, AI) and deleveraging priorities. Overall, positives (growth, cash generation, AI/loyalty traction, acquisition progress) slightly outweigh the near-term challenges and macro risks.Positive Updates
AI Adoption and Impact (Mylow & Companion)
Mylow (customer-facing) now supports over 1 million customer inquiries per month with a conversion rate three times higher for users; Mylow Companion (associate-facing) logged over 5 million associate questions since launch and is driving measurable productivity and customer satisfaction improvements.
Negative Updates
Margin Pressure
Gross margin contracted to 32.7% (down 70 basis points) and adjusted operating margin rate fell to 11.5% (down 43 basis points year-over-year), with management citing dilutive impact of acquisitions and cost pressures.
Read all updates
Q1-2026 Updates
Positive
Negative
AI Adoption and Impact (Mylow & Companion)
Mylow (customer-facing) now supports over 1 million customer inquiries per month with a conversion rate three times higher for users; Mylow Companion (associate-facing) logged over 5 million associate questions since launch and is driving measurable productivity and customer satisfaction improvements.
Read all positive updates
Company Guidance
Lowe’s affirmed fiscal 2026 guidance and provided quarterly context: full‑year sales $92.0–$94.0 billion, comparable sales flat to +2%, adjusted operating margin 11.6%–11.8%, adjusted diluted EPS $12.25–$12.75 and capital expenditures up to $2.5 billion, while targeting a 2.75x leverage ratio by mid‑2027; Q2 comps are expected roughly at the midpoint of the full‑year guide (about +1%), Q2 adjusted operating margin is expected to be pressured and Q2 adjusted diluted EPS is forecast to be ~2% below prior year. Management cited Q1 results that underpin the outlook: Q1 sales $23.1 billion, comps +0.6% (Feb -1.4%, Mar +2.1%, Apr +0.5%), GAAP diluted EPS $2.90 and adjusted diluted EPS $3.03 (+3.8% Y/Y), gross margin 32.7% (-70 bps), SG&A 19.2% (-17 bps), adjusted operating margin 11.5% (-43 bps), effective tax rate 24.5%, inventory $18.4 billion (+$112M Y/Y including ~ $500M from acquisitions), free cash flow $2.8 billion, Q1 CapEx $521 million, dividends paid $674 million ($1.20/share), $2.4 billion of bond maturities repaid, adjusted debt/EBITDAR 3.1x, cash $786 million, ROIC 26.8%, and $96 million pretax acquisition‑related amortization; management emphasized ongoing PPI/productivity initiatives (targeting ~$1 billion of benefits) to offset cost and tariff/fuel pressures.Lowe's Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
38
Negative
Cash Flow
67
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 88.43B | 86.29B | 83.67B | 86.38B | 97.06B | 96.25B |
| Gross Profit | 29.89B | 28.89B | 26.15B | 27.13B | 30.49B | 30.39B |
| EBITDA | 12.16B | 10.69B | 12.59B | 13.57B | 12.69B | 14.47B |
| Net Income | 6.64B | 6.65B | 6.96B | 7.73B | 6.44B | 8.44B |
Balance Sheet | ||||||
| Total Assets | 54.94B | 54.14B | 44.57B | 43.36B | 45.27B | 46.33B |
| Cash, Cash Equivalents and Short-Term Investments | 1.24B | 1.35B | 2.13B | 1.23B | 1.73B | 1.40B |
| Total Debt | 42.54B | 44.68B | 39.68B | 40.15B | 37.99B | 29.38B |
| Total Liabilities | 64.21B | 64.06B | 58.80B | 58.41B | 59.53B | 51.15B |
| Stockholders Equity | -9.27B | -9.92B | -14.23B | -15.05B | -14.25B | -4.82B |
Cash Flow | ||||||
| Free Cash Flow | 7.62B | 7.65B | 7.70B | 6.18B | 6.76B | 8.26B |
| Operating Cash Flow | 9.84B | 9.86B | 9.63B | 8.14B | 8.59B | 10.11B |
| Investing Cash Flow | -12.23B | -12.26B | -1.74B | -1.90B | -1.31B | -1.65B |
| Financing Cash Flow | 129.00M | 1.62B | -7.05B | -6.67B | -7.05B | -12.02B |
Lowe's Technical Analysis
Neutral
251.72
Price Trends
224.52
Negative
238.79
Negative
242.72
Negative
Market Momentum
-0.28
Negative
53.56
Neutral
64.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOW, the sentiment is Neutral. The current price of 251.72 is above the 20-day moving average (MA) of 215.77, above the 50-day MA of 224.52, and above the 200-day MA of 242.72, indicating a neutral trend. The MACD of -0.28 indicates Negative momentum. The RSI at 53.56 is Neutral, neither overbought nor oversold. The STOCH value of 64.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LOW.
Lowe's Risk Analysis
Lowe's disclosed 26 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $28.16B | 26.50 | 53.29% | 1.37% | 1.30% | 1.14% | |
67 Neutral | $16.38B | 14.35 | 40.05% | 5.46% | 0.99% | 31.91% | |
63 Neutral | $347.85B | 24.84 | 113.30% | 2.67% | 2.23% | -4.48% | |
62 Neutral | $16.37B | 15.29 | 42.57% | 1.80% | 4.64% | 1.15% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $6.44B | 31.64 | 8.38% | ― | 3.46% | -3.01% | |
56 Neutral | $124.75B | 18.55 | -64.84% | 1.94% | 6.24% | -2.12% |
* Consumer Cyclical Sector Average
LOW
Lowe's
220.49
-3.74
-1.67%
BBY
Best Buy Co
75.88
8.96
13.39%
HD
Home Depot
352.68
-10.81
-2.98%
TSCO
Tractor Supply
31.61
-21.36
-40.33%
WSM
Williams-Sonoma
233.10
66.35
39.79%
FND
Floor & Decor Holdings
59.36
-21.95
-27.00%
Lowe's Corporate Events
Business Operations and StrategyShareholder Meetings
Lowe’s shareholders affirm board, pay practices at annual meeting
Positive
Jun 2, 2026
Lowe’s Companies, Inc. held its annual meeting of shareholders on May 29, 2026, where investors elected the full slate of director nominees, including CEO Marvin R. Ellison, with strong majority support and typical levels of broker non-votes...
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.