Lowe's Companies IncFind Ratings Reports
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.
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|Income Statement||Q1 FY16||Q1 FY15|
|Net Sales ($mil)||15234.0||14129.0|
|Net Income ($mil)||884.0||673.0|
|Balance Sheet||Q1 FY16||Q1 FY15|
|Cash & Equiv. ($mil)||4735.0||1529.0|
|Total Assets ($mil)||37177.0||34422.0|
|Total Debt ($mil)||15405.0||11360.0|
|Profitability||Q1 FY16||Q1 FY15|
|Gross Profit Margin||35.03||35.47|
|Return on Assets||7.41||7.98|
|Return on Equity||38.22||28.98|
|Debt||Q1 FY16||Q1 FY15|
|Share Data||Q1 FY16||Q1 FY15|
|Shares outstanding (mil)||894.0||947.0|
|Div / share||0.28||0.23|
|Book value / share||8.07||10.01|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||4901365.0||5282561.0|
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.
|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.
|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.
|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.
|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