Lowe's Companies Inc

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LOW : NYSE : Services
$73.64 | %
Today's Range: 73.22 - 74.19
Avg. Daily Volume: 6082700.0
08/18/17 - 4:04 PM ET

Financial Analysis

LOWE'S COMPANIES INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. LOWE'S COMPANIES INC has very weak liquidity. Currently, the Quick Ratio is 0.14 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 23.30% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)16860.015234.0
EBITDA ($mil)1924.01946.0
EBIT ($mil)1559.01586.0
Net Income ($mil)602.0884.0

Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)2047.04735.0
Total Assets ($mil)37613.037177.0
Total Debt ($mil)16065.015405.0
Equity ($mil)5531.07212.0

Profitability Q1 FY17 Q1 FY16
Gross Profit Margin34.435.03
EBITDA Margin11.4112.77
Operating Margin9.2510.41
Sales Turnover1.771.62
Return on Assets7.467.41
Return on Equity50.7838.22
Debt Q1 FY17 Q1 FY16
Current Ratio1.041.17
Interest Expense165.0159.0
Interest Coverage9.459.97

Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)853.0894.0
Div / share0.350.28
Book value / share6.488.07
Institutional Own % n/a n/a
Avg Daily Volume5995368.05144567.0


BUY. The current P/E ratio indicates a premium compared to an average of 21.45 for the Specialty Retail industry and a value on par with the S&P 500 average of 24.31. To use another comparison, its price-to-book ratio of 11.88 indicates a significant premium versus the S&P 500 average of 3.03 and a significant discount versus the industry average of 21.61. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
LOW 24.22 Peers 21.45   LOW 11.41 Peers 13.40

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
LOW 14.61 Peers 18.42   LOW 0.72 Peers 1.72

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 11.88 Peers 21.61   LOW 6.35 Peers 10.33

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 0.99 Peers 1.42   LOW 10.74 Peers 5.74

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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