LOWE'S COMPANIES INC's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. LOWE'S COMPANIES INC has very weak liquidity. Currently, the Quick Ratio is 0.16 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 15.18% 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 FY14||Q3 FY13|
|Net Sales ($mil)||13681.0||12957.0|
|Net Income ($mil)||585.0||498.0|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||1773.0||1216.0|
|Total Assets ($mil)||34032.0||34077.0|
|Total Debt ($mil)||11357.0||10141.0|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||34.49||34.59|
|Return on Assets||7.5||6.65|
|Return on Equity||23.8||17.93|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||974.0||1050.0|
|Div / share||0.23||0.18|
|Book value / share||11.02||12.05|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||5509258.0||5030216.0|
BUY. The current P/E ratio indicates a discount compared to an average of 27.60 for the Specialty Retail industry and a premium compared to the S&P 500 average of 20.19. To use another comparison, its price-to-book ratio of 6.13 indicates a significant premium versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 7.92. 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 26.68||Peers 27.60||LOW 13.17||Peers 20.70|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.
LOW is trading at a valuation on par with 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 significant discount to its peers.
|LOW 20.65||Peers 22.52||LOW 1.08||Peers 2.54|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
LOW is trading at a premium to 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 6.13||Peers 7.92||LOW 20.47||Peers 0.18|
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 discount to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
LOW is expected to have an earnings growth rate that significantly exceeds its peers.
|LOW 1.19||Peers 1.50||LOW 4.80||Peers 7.80|
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 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 significantly trails its peers on the basis of sales growth
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