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Lowe's Companies Inc
LOW : NYSE : Services
$77.39 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 4,595,700
11/24/15 - 4:01 PM ET

Financial Analysis

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 ($mil)14360.013681.0
EBITDA ($mil)1703.01462.0
EBIT ($mil)1329.01087.0
Net Income ($mil)736.0585.0

Balance Sheet Q3 FY15 Q3 FY14
Cash & Equiv. ($mil)1385.01773.0
Total Assets ($mil)33655.034032.0
Total Debt ($mil)12599.011357.0
Equity ($mil)8378.010730.0

Profitability Q3 FY15 Q3 FY14
Gross Profit Margin34.7534.49
EBITDA Margin11.8510.68
Operating Margin9.257.95
Sales Turnover1.731.63
Return on Assets8.867.5
Return on Equity35.6223.8
Debt Q3 FY15 Q3 FY14
Current Ratio1.021.12
Interest Expense0.0135.0
Interest Coverage0.08.05

Share Data Q3 FY15 Q3 FY14
Shares outstanding (mil)917.0974.0
Div / share0.280.23
Book value / share9.1411.02
Institutional Own % n/a n/a
Avg Daily Volume4841489.05355798.0


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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
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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