Lowe's Companies Inc

Find Ratings Reports
LOW : NYSE : Services
$76.07 | %
Today's Range: 75.8302 - 78.41
Avg. Daily Volume: 5329300.0
06/23/17 - 4:02 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.

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 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
Debt/Capital0.740.68
Interest Expense165.0159.0
Interest Coverage9.459.97


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)853.0894.0
Div / share0.350.28
EPS0.70.98
Book value / share6.488.07
Institutional Own % n/a n/a
Avg Daily Volume5286309.05429402.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 21.78 for the Specialty Retail industry and a value on par with the S&P 500 average of 25.75. To use another comparison, its price-to-book ratio of 12.08 indicates a significant premium versus the S&P 500 average of 3.09 and a significant discount versus the industry average of 21.49. 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 24.64 Peers 21.78   LOW 11.61 Peers 13.51

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 14.87 Peers 18.60   LOW 0.74 Peers 1.65

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 12.08 Peers 21.49   LOW 6.35 Peers 12.00

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 1.00 Peers 1.45   LOW 10.74 Peers 5.75

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.

 

 

Latest Stock Upgrades/Downgrades