Lowe's Companies Inc

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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.

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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
Interest Expense159.0135.0
Interest Coverage9.979.13

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


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.

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.

1 2 3 4 5
premium   discount
  Price to
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.

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.

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



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