Lowe's (LOW) AI Stock Analysis

• Market Cap: $124.93B
• Dividend Yield: 2.04%
• Average Volume (3M): 3.01M
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.92
• Revenue Growth: -3.13%
• EPS Growth: -7.21%
• Country: US
• Employees: 161,000
• Sector: Consumer Cyclical
• Sector Strength: 55
• Industry: Home Improvement
• EPS (TTM): 12.21
• Shares Outstanding: 559,706,540
• 10 Day Avg. Volume: 3,162,413
• 30 Day Avg. Volume: 3,005,906
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.53
• Price to Cash Flow (P/CF): 24.70
• P/FCF Ratio: 44.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $280.50
• Price Target Upside: 26.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20

Lowe's overall score reflects strong profitability and strategic growth initiatives, particularly in online sales and the pro segment. However, high leverage, negative equity, and challenging macroeconomic conditions weigh on the stock's prospects. Technical indicators suggest bearish momentum, while valuation remains fair.

Positive Factors

Earnings

LOW reported a better-than-expected adjusted EPS driven by higher-than-expected comp sales, including strong seasonal DIY performance.

Market Strategy

The Total Home strategy is expected to enable Lowe's to outpace the market, with investments in pro penetration, online sales, home services, loyalty ecosystem, and space productivity.

Negative Factors

Tariffs

The incremental 10% China tariff creates uncertainty, making it tough to model for the business.

Weather Impact

A slow start to the first quarter due to weather has caused a 150 basis points drag on comps in January, persisting into February.

Lowe's Business Overview & Revenue Model

Company Description

Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States and internationally. The company offers a line of products for construction, maintenance, repair, remodeling, and decorating. It provides home improvement products, such as appliances, seasonal and outdoor living, lawn and garden, lumber, kitchens and bath, tools, paint, millwork, hardware, flooring, rough plumbing, building materials, decor, lighting, and electrical. It also offers installation services through independent contractors in various product categories; extended protection plans; and in-warranty and out-of-warranty repair services. The company sells its national brand-name merchandise and private brand products to homeowners, renters, and professional customers. As of January 28, 2022, it operated 1,971 home improvement and hardware stores. The company also sells its products through websites comprising Lowes.com and Lowesforpros.com; and through mobile applications. Lowe's Companies, Inc. was founded in 1921 and is based in Mooresville, North Carolina.

How the Company Makes Money

Lowe's generates revenue primarily through the sale of home improvement products in its vast network of retail stores and through its e-commerce platform. The company earns money by offering a diverse range of products across categories such as appliances, building materials, paint, and outdoor living. Additionally, Lowe's has developed a strong presence in the professional customer segment by providing services and products tailored to the needs of contractors and repair specialists. Revenue is further supplemented by installation and delivery services, which provide convenience to customers seeking a comprehensive home improvement solution. Partnerships with various suppliers and exclusive brand offerings also play a significant role in enhancing Lowe's product assortment and profit margins.

Lowe's Financial Statement Overview

Summary

Lowe's shows strong profitability with solid margins, but high leverage and negative equity pose financial risks. While cash flow management is efficient, revenue growth challenges necessitate strategic focus.

Income Statement

Lowe's has demonstrated consistent profitability with a strong gross profit margin and positive net profit margin. However, recent revenue growth has been sluggish, particularly for the latest year, which could indicate market challenges or saturation. EBIT and EBITDA margins remain solid, reflecting efficient operational management despite flat revenue trajectories.

Balance Sheet

The balance sheet shows high leverage, with a significant negative stockholders' equity, pointing to potential financial risk. Although the company maintains a substantial asset base, the debt-to-equity ratio suggests heavy reliance on debt financing. The equity ratio is negative, indicating financial instability.

Cash Flow

Lowe's has maintained strong free cash flow generation and a healthy operating cash flow to net income ratio, reflecting efficient cash management. However, the free cash flow growth rate is volatile, indicating potential fluctuations in capital expenditure and cash flow sustainability.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
83.67B	86.38B	97.06B	96.25B	89.60B
	Gross Profit
27.88B	28.84B	32.26B	32.06B	29.57B
	EBIT
10.47B	11.56B	10.16B	12.09B	9.65B
	EBITDA
10.88B	13.57B	12.69B	14.47B	11.24B
	Net Income Common Stockholders
6.96B	7.73B	6.44B	8.44B	5.83B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.13B	921.00M	1.73B	1.40B	5.20B
	Total Assets
43.10B	41.80B	43.71B	44.64B	46.73B
	Total Debt
6.78B	40.15B	37.99B	29.38B	26.21B
	Net Debt
5.02B	39.22B	36.65B	28.25B	21.52B
	Total Liabilities
57.33B	56.84B	57.96B	49.46B	45.30B
	Stockholders Equity
-14.23B	-15.05B	-14.25B	-4.82B	1.44B
Cash Flow		Free Cash Flow
7.70B	6.18B	6.76B	8.26B	9.26B
	Operating Cash Flow
9.63B	8.14B	8.59B	10.11B	11.05B
	Investing Cash Flow
-1.74B	-1.90B	-1.31B	-1.65B	-1.89B
	Financing Cash Flow
-7.05B	-6.67B	-7.05B	-12.02B	-5.19B

Lowe's Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 221.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOW, the sentiment is Negative. The current price of 221.2 is below the 20-day moving average (MA) of 226.48, below the 50-day MA of 238.96, and below the 200-day MA of 248.76, indicating a bearish trend. The MACD of -3.38 indicates Negative momentum. The RSI at 48.45 is Neutral, neither overbought nor oversold. The STOCH value of 79.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LOW.

Lowe's Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TJX	77 Outperform	$140.81B	29.59	61.98%	1.19%	3.95%	10.34%
TSCO	75 Outperform	$27.31B	25.18	49.83%	1.85%	2.25%	1.00%
EBAY	73 Outperform	$28.87B	15.72	34.29%	1.77%	2.79%	-23.30%
HD	68 Neutral	$353.23B	23.84	385.37%	2.55%	4.48%	-1.27%
LOW	64 Neutral	$124.93B	18.27	-51.07%	2.04%	-3.13%	-7.21%
FND	61 Neutral	$8.41B	41.14	10.04%	―	0.95%	-16.97%
Sector *	59 Neutral	$11.76B	10.11	-0.70%	3.92%	1.27%	-16.30%

Lowe's Corporate Events

Lowe’s Unveils 2025 Total Home Strategy for Growth

Lowe’s has unveiled its 2025 Total Home Strategy at its Analyst and Investor Conference, focusing on growth initiatives such as driving Pro penetration, accelerating online sales, expanding home services, creating a loyalty ecosystem, and increasing space productivity. The company is also enhancing its operations with a new AI framework, launching a product marketplace, and expanding its store footprint, while providing financial updates and scenario planning for 2025, aiming for long-term growth and enhanced shareholder value.