Lowe's Companies, Inc. (LOW) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

The Home Depot, Inc.

Lowe's Companies, Inc.

Floor & Decor Holdings, Inc.

Builders FirstSource, Inc.

Tile Shop Holdings, Inc.

Why is Lowe's Companies, Inc. ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

High Debt Company with a Debt to Equity ratio (avg) at times

Risky - Negative Book Value

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -7.40%, its profits have fallen by -7.1%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -7.40% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Lowe's Companies, Inc. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Lowe's Companies, Inc.

1.41%

0.56

24.36%

S&P 500

13.68%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.25%

EBIT Growth (5y)

-0.26%

EBIT to Interest (avg)

10.34

Debt to EBITDA (avg)

2.07

Net Debt to Equity (avg)

-2.40

Sales to Capital Employed (avg)

3.78

Tax Ratio

24.02%

Dividend Payout Ratio

37.24%

Pledged Shares

Institutional Holding

81.57%

ROCE (avg)

62.83%

ROE (avg)

1,870.84%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

-13.08

EV to EBIT

17.21

EV to EBITDA

14.30

EV to Capital Employed

6.00

EV to Sales

2.08

PEG Ratio

Dividend Yield

1.97%

ROCE (Latest)

34.90%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 138.58

RAW MATERIAL COST(Y)

Fallen by -1.18% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -420.56 %

INVENTORY TURNOVER RATIO(HY)

Highest at 3.33 times

DEBTORS TURNOVER RATIO(HY)

Highest at 138.58 times

-1What is not working for the Company

INTEREST(Q)

Highest at USD 392 MM

Here's what is working for Lowe's Companies, Inc.

Dividend per share

Highest at USD 138.58 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Debt-Equity Ratio

Lowest at -420.56 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 3.33 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 138.58 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -1.18% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 535 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Lowe's Companies, Inc.

Interest

Highest at USD 392 MM

in the last five periods and Increased by 10.73% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)