LOWE'S COMPANIES INC's gross profit margin for the third quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. LOWE'S COMPANIES INC has very weak liquidity. Currently, the Quick Ratio is 0.11 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 21.91% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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|Income Statement||Q3 FY15||Q3 FY14|
|Net Sales ($mil)||14360.0||13681.0|
|Net Income ($mil)||736.0||585.0|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||1385.0||1773.0|
|Total Assets ($mil)||33655.0||34032.0|
|Total Debt ($mil)||12599.0||11357.0|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||34.75||34.49|
|Return on Assets||8.86||7.5|
|Return on Equity||35.62||23.8|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||917.0||974.0|
|Div / share||0.28||0.23|
|Book value / share||9.14||11.02|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||4841489.0||5355798.0|
BUY. LOWE'S COMPANIES INC's P/E ratio indicates a discount compared to an average of 26.12 for the Specialty Retail industry and a value on par with the S&P 500 average of 21.93. To use another comparison, its price-to-book ratio of 8.03 indicates a significant premium versus the S&P 500 average of 2.77 and a significant discount versus the industry average of 10.85. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, LOWE'S COMPANIES INC proves to trade at a discount to investment alternatives within the industry.
|LOW 23.22||Peers 26.12||LOW 13.89||Peers 16.47|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
LOW is trading at a discount to its peers.
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
LOW is trading at a discount to its peers.
|LOW 18.58||Peers 21.04||LOW 1.09||Peers 1.97|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
LOW is trading at a valuation on par with its peers.
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
LOW trades at a significant discount to its peers.
|LOW 8.03||Peers 10.85||LOW 24.90||Peers 72.16|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
LOW is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, LOW is expected to significantly trail its peers on the basis of its earnings growth rate.
|LOW 1.15||Peers 1.57||LOW 5.48||Peers 6.49|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
LOW is trading at a significant discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
LOW trails its peers on the basis of sales growth
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