Lowe's Companies Inc

Find Ratings Reports
LOW : NYSE : Services
$82.28 | %
Today's Range: 81.88 - 82.54
Avg. Daily Volume: 4,917,900
07/29/16 - 4:05 PM ET

Financial Analysis


LOWE'S COMPANIES INC's gross profit margin for the first 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 0.34 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 23.89% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)15234.014129.0
EBITDA ($mil)1943.01597.0
EBIT ($mil)1586.01232.0
Net Income ($mil)884.0673.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)4735.01529.0
Total Assets ($mil)37177.034422.0
Total Debt ($mil)15405.011360.0
Equity ($mil)7212.09477.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin35.0335.47
EBITDA Margin12.7511.3
Operating Margin10.418.72
Sales Turnover1.621.65
Return on Assets7.417.98
Return on Equity38.2228.98
Debt Q1 FY16 Q1 FY15
Current Ratio1.170.99
Debt/Capital0.680.55
Interest Expense159.0135.0
Interest Coverage9.979.13


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)894.0947.0
Div / share0.280.23
EPS0.980.7
Book value / share8.0710.01
Institutional Own % n/a n/a
Avg Daily Volume4901365.05282561.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 24.35 for the Specialty Retail industry and a value on par with the S&P 500 average of 25.05. To use another comparison, its price-to-book ratio of 9.94 indicates a significant premium versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 13.96. 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 26.81 Peers 24.35   LOW 12.84 Peers 15.74

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

LOW is trading at a premium 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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
LOW 17.05 Peers 20.26   LOW 0.55 Peers 2.04

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 9.94 Peers 13.96   LOW 7.16 Peers -3.13

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.

 

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
LOW 1.19 Peers 1.56   LOW 5.67 Peers 8.06

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

 

 

Latest Stock Upgrades/Downgrades