Lowe's Companies Inc

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LOW : NYSE : Services
$85.23 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 5142700.0
04/26/17 - 4:03 PM ET

Financial Analysis


LOWE'S COMPANIES INC's gross profit margin for the fourth quarter of its fiscal year 2016 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 0.06 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 15.93% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)15784.013236.0
EBITDA ($mil)1643.01337.0
EBIT ($mil)1269.0968.0
Net Income ($mil)663.011.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)658.0712.0
Total Assets ($mil)34408.031266.0
Total Debt ($mil)15699.012649.0
Equity ($mil)6434.07654.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin34.4134.66
EBITDA Margin10.410.1
Operating Margin8.047.31
Sales Turnover1.891.89
Return on Assets8.988.14
Return on Equity48.0433.26
Debt Q4 FY16 Q4 FY15
Current Ratio1.01.01
Debt/Capital0.710.62
Interest Expense162.0145.0
Interest Coverage7.836.68


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)866.0910.0
Div / share0.350.28
EPS0.740.01
Book value / share7.438.41
Institutional Own % n/a n/a
Avg Daily Volume5126659.06366794.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 23.54 for the Specialty Retail industry and a value on par with the S&P 500 average of 24.84. To use another comparison, its price-to-book ratio of 11.23 indicates a significant premium versus the S&P 500 average of 2.98 and a significant discount versus the industry average of 18.79. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
LOW 24.12 Peers 23.54   LOW 12.87 Peers 14.47

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 discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
LOW 15.84 Peers 19.14   LOW 0.72 Peers 1.81

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
LOW 11.23 Peers 18.79   LOW 27.67 Peers 40.88

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
LOW 1.11 Peers 1.52   LOW 10.06 Peers 7.24

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

LOW has a sales growth rate that significantly exceeds its peers.

 

 

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