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Lowe's Companies, Inc. (LOW) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Lowe's Companies, Inc.

LOWMarket cap $102BPrice $181.5

Country🇺🇸United States

SectorConsumer

IndustrySpecialty Retail

Operates home improvement stores where millions of DIYers and contractors buy tools, appliances, and building materials. Second-largest home retailer in America, but makes surprisingly high profits from professional contractors who need bulk supplies.

In Bastion Portfolios?

52W Return-25%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)-4%2

Revenue Forecast

Rev CAGR (1y)+7%5

Rev CAGR (3y)+4%3

Rev CAGR (5y)+4%4

Earnings Forecast

EPS Growth Y+1+3%5

EPS Growth Y+2+6%5

EPS Growth Y+3+7%6

Quality

Margins

EBIT Margin11%5

Net Income Margin7%5

Free Cash Flow Margin8%5

Debt

Net Debt/EBITDA2.63

Efficiency

ROEna–

ROA13%9

Earnings Stability44

GEAR+WEAK31

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)156

P/E Ratio (Forward 3y)136

P/BVna–

EV Multiples

EV/EBITDA Fwd116

EV/EBIT Fwd137

Yield

Free Cash Flow Yield6.9%8

Dividend Yield2.8%7

Momentum

Short term

1 month return-10%3

3 month return-14%2

YTD return-24%2

Mid term

Price vs 52wHigh63%2

1 year return-22%2

Long term

3 year return-3%3

5 year return-3%3

Risk Shield

Price Risk

Beta0.86

Volatility27%8

Free Cash Flow

Free Cash Flow Margin8%5

Free Cash Flow Yield6.9%8

Quality

ROCE34%10

Earnings Stability44

Net Debt/EBITDA2.63

02Growth

Is it actually growing, and how fast?

LOWLowe's Companies

Revenue FY26$86.3B

GROWTH RATING↗

WEAK26 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-4%2

Revenue, next 1Y+7%5

Revenue, next 3Y, CAGR+4%3

Revenue, next 5Y, CAGR+4%4

EARNINGS FORECAST▾SCORE

EPS growth, FY27E+3%5

EPS growth, FY28E+6%5

EPS growth, FY29E+7%6

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

Revenue is set to grow 4%/yr over the next 3 years, a little behind the market.4/10

After shrinking over the last 3 years, revenue is set to grow 4%/yr from here.

Over five years revenue is set to grow 4%/yr, behind 60% of companies worldwide.4/10

Earnings are set to grow in step with sales (EPS about 6%/yr vs revenue 4%/yr).

WEAKNESSES

Growth is the weak spot here, trailing 74% of companies worldwide.

Revenue fell 4%/yr over the last 3 years, behind 80% of companies worldwide.2/10

BOTTOM LINE

Steady Grower

Growth is a weak point here: a business that's turning around. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK8 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-10%3

3-month return-14%2

YTD return-24%2

MID & LONG-TERM▾SCORE

% of 52-week high63%2

1-year return-22%2

3-year return-3%3

5-year return-3%3

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

None flagged.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-3.4% over three years and -3% over five), behind 70% of the market.

It's down 22% over the past year, now 37% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-10%), over three months (-14%) and so far this year (-24%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Lowe's. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

LOWLowe's Companies

Revenue FY26$86.3B

GROWTH RATING↗

WEAK26 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-4%2

Revenue, next 1Y+7%5

Revenue, next 3Y, CAGR+4%3

Revenue, next 5Y, CAGR+4%4

EARNINGS FORECAST▾SCORE

EPS growth, FY27E+3%5

EPS growth, FY28E+6%5

EPS growth, FY29E+7%6

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

Revenue is set to grow 4%/yr over the next 3 years, a little behind the market.4/10

After shrinking over the last 3 years, revenue is set to grow 4%/yr from here.

Over five years revenue is set to grow 4%/yr, behind 60% of companies worldwide.4/10

Earnings are set to grow in step with sales (EPS about 6%/yr vs revenue 4%/yr).

WEAKNESSES

Growth is the weak spot here, trailing 74% of companies worldwide.

Revenue fell 4%/yr over the last 3 years, behind 80% of companies worldwide.2/10

BOTTOM LINE

Steady Grower

Growth is a weak point here: a business that's turning around. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK8 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-10%3

3-month return-14%2

YTD return-24%2

MID & LONG-TERM▾SCORE

% of 52-week high63%2

1-year return-22%2

3-year return-3%3

5-year return-3%3

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

None flagged.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-3.4% over three years and -3% over five), behind 70% of the market.

It's down 22% over the past year, now 37% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-10%), over three months (-14%) and so far this year (-24%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on Lowe's. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community