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Lowe's Companies, Inc.
S&P 500
$109.9B
Market Cap
22.5
P/E
3.90
PEG
26.2%
ROCE
-55.1%
ROE
-4.19
D/E
11.8%
OPM
-30.8%
% from 52W High
21
α RS
🔍 LOW is showing a high-conviction setup because it matches 6 of 39 tracked screener presets and institutional_quality preset's Backtest win rate is 54.3% over 90 days. Net: Partial signal stack, not a recommendation. ? Conviction Backtest
Sources
Conviction 6/39 · Backtest win rate 54.3%
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Currency-adjusted total returns for LOW including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
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About

Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States and Canada. It provides a line of products for construction, maintenance, repair, remodeling, and decorating. The company also offers home improvement products, such as appliances, seasonal and outdoor living, lumber, lawn and garden, kitchens and bath, hardware, building materials, millwork, paint, rough plumbing, tools, electrical, flooring, and décor. In addition, it provides installation services through independent contractors in various product categories; and extended protection plans and repair services. Further, the company provides design, distribution, and installation services for interior surface finishes to home builders and property managers. It sells its national brand-name merchandise and private brand products to professional customers, individual homeowners, and renters. The company serves its products through Lowes.com website, mobile applications, retail home improvement stores and outlet stores, and its branches. Lowe's Companies, Inc. was founded in 1921 and is based in Mooresville, North Carolina.

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📈 Growth Pattern
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3-Statement Financial Model
Bear / Base / Bull projections · DCF fair value · Reverse-DCF
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Good quarter Investor Presentation One-Pager? Q1 2027
Revenue
$23.1B
+10.3% YoY
Operating Margin
11.5%
-43 bps YoY
Net Income
$1.6B
Not disclosed
Adjusted Diluted EPS
$3.03
+3.8% YoY
What Went Right
  • Fourth consecutive quarter of positive comp sales (+0.6%)
  • Online sales surged 15.5% driven by enhanced fulfillment and AI assistant Mylow
  • Pro and home services maintained growth momentum, with Pro Extended Aisle expansion
What to Watch
  • DIY discretionary demand remains under pressure, especially for big-ticket projects
  • Higher transportation costs and tariff-related inflation expected to pressure Q2 margins
  • Challenging housing macro with elevated rates and low turnover continues to weigh on consumer
Management Guidance
  • FY26 total sales $92.0B-$94.0B; comp sales flat to up 2%
  • FY26 adjusted operating margin 11.6%-11.8%; adjusted diluted EPS $12.25-$12.75
  • Q2 comp sales expected roughly in line with midpoint of full-year guide; Q2 adjusted EPS ~2% below prior year
Investor Lens
The thesis strengthens. Lowe's delivered solid results despite a tough DIY environment, driven by execution in spring categories, pro, online, and home services. Management reaffirmed full-year guidance, signaling confidence in its Total Home strategy. While near-term cost pressures from tariffs and fuel are manageable, the resilient performance and consistent market share gains suggest Lowe's is well-positioned for a macro recovery.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Positive comps (0.6%) driven by spring execution, pro, online, home services; reaffirms FY26 guidance
Revenue
Revenue rose 10.3% to $23.1B, with comparable sales up 0.6%. Growth was broad-based across hard lines, building products, and home decor, though DIY discretionary categories lagged. Online sales grew 15.5%, and pro/home services remained strong.
Profitability
Net income was $1.6B, and adjusted diluted EPS of $3.03 increased 3.8% YoY, driven by sales growth and cost discipline partially offset by acquisition dilution.
Margins
Adjusted operating margin was 11.5%, down 43 bps YoY, primarily from the dilutive impact of the FBM and ADG acquisitions. Gross margin of 32.7% fell 70 bps, in line with expectations. SG&A leveraged 17 bps to 19.2% of sales.
Balance Sheet
The company generated $2.8B in free cash flow and invested $521M in CapEx. Inventory stood at $18.4B, up modestly due to tariffs and acquisitions. Cash and cash equivalents were $786M, and adjusted debt-to-EBITDA was 3.1x.
Key Risks
Key risks include ongoing DIY discretionary pressure in a high-rate, low-turnover housing market; rising transportation costs and tariff inflation impacting Q2 margins; and the uncertain macro environment potentially affecting second-half demand.
Outlook
For FY26, Lowe's reaffirmed sales of $92B-$94B, comps flat to up 2%, and adjusted EPS of $12.25-$12.75. Q2 comps are expected to align with the full-year midpoint, while Q2 adjusted EPS is projected ~2% below prior year due to acquisition dilution, seasonal investments, and transportation cost headwinds.
Generated by AI · Q1 2027 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q1 2027 Q1 2027 2026-05-20
Q1 saw $23.1B in sales, 0.6% comp growth, and adjusted EPS up 3.8% year-over-year, driven by Pro, online, and home services. Guidance for FY26 is $92–$94B in sales and $12.25–$12.75 EPS, with continued market share gains expected despite macro headwinds.
Q4 2026 Q4 2026 2026-02-25
Fourth quarter sales rose to $20.6B with comps up 1.3%, and FY25 sales reached $86.3B. FY26 guidance projects $92–94B in sales and adjusted EPS of $12.25–$12.75, with acquisitions boosting revenue but diluting margins. Productivity initiatives and digital investments remain key.
Q3 2026 Q3 2026 2025-11-19
Q3 saw $20.8B in sales and 0.4% comp growth, with adjusted EPS up 6% to $3.06. Full-year sales are expected to reach $86B, with flat comps and a 12.1% adjusted operating margin. Integration of FBM and ADG is underway, and AI initiatives are driving productivity.
Q2 2026 Q2 2026 & Acquisition 2025-08-20
Q2 2025 saw $24B in sales and 1.1% comp growth, with adjusted EPS up 5.6% year-over-year. The $8.8B FBM acquisition expands Pro offerings and is expected to drive long-term growth, while guidance for 2025 remains cautious amid a flat home improvement market.
Q1 2026 Q1 2026 2025-05-21
Q1 sales and EPS met expectations despite housing market headwinds and weather impacts. Pro and online segments showed growth, while DIY big-ticket demand remained soft. The ADG acquisition and technology investments are expected to drive future growth.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Information Sources:
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