Lowe's Companies IncFind Ratings Reports
LOWE'S COMPANIES INC's gross profit margin for the third quarter of its fiscal year 2016 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 0.09 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 21.23% 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||Q3 FY16||Q3 FY15|
|Net Sales ($mil)||15739.0||14360.0|
|Net Income ($mil)||378.0||736.0|
|Balance Sheet||Q3 FY16||Q3 FY15|
|Cash & Equiv. ($mil)||1083.0||1385.0|
|Total Assets ($mil)||35370.0||33655.0|
|Total Debt ($mil)||15195.0||12599.0|
|Profitability||Q3 FY16||Q3 FY15|
|Gross Profit Margin||34.35||34.75|
|Return on Assets||6.89||8.86|
|Return on Equity||36.96||35.62|
|Debt||Q3 FY16||Q3 FY15|
|Share Data||Q3 FY16||Q3 FY15|
|Shares outstanding (mil)||873.0||917.0|
|Div / share||0.35||0.28|
|Book value / share||7.56||9.14|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||5314987.0||6262668.0|
BUY. The current P/E ratio indicates a premium compared to an average of 22.53 for the Specialty Retail industry and a value on par with the S&P 500 average of 26.53. To use another comparison, its price-to-book ratio of 10.03 indicates a significant premium versus the S&P 500 average of 2.96 and a significant discount versus the industry average of 18.37. 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 27.77||Peers 22.53||LOW 11.96||Peers 14.67|
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 16.73||Peers 19.53||LOW 0.64||Peers 1.86|
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 10.03||Peers 18.37||LOW -13.61||Peers 5.04|
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.
|LOW 1.06||Peers 1.51||LOW 7.00||Peers 7.39|
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.
Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.
LOW is keeping pace with its peers on the basis of sales growth.