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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

The Home Depot, Inc.

Floor & Decor Holdings, Inc.

Lowe's Companies, 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 -9.59%, its profits have fallen by -7.1%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -9.59% 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.

-9.59%

0.53

24.37%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.79%

EBIT Growth (5y)

1.51%

EBIT to Interest (avg)

10.34

Debt to EBITDA (avg)

2.07

Net Debt to Equity (avg)

-2.40

Sales to Capital Employed (avg)

3.93

Tax Ratio

24.02%

Dividend Payout Ratio

37.24%

Pledged Shares

Institutional Holding

79.05%

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

-9.53

EV to EBIT

15.61

EV to EBITDA

13.04

EV to Capital Employed

8.50

EV to Sales

1.90

PEG Ratio

Dividend Yield

1.15%

ROCE (Latest)

54.43%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

17What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 9,820 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 28.11%

DIVIDEND PER SHARE(HY)

Highest at USD 0

INTEREST COVERAGE RATIO(Q)

Highest at 1,125.42

RAW MATERIAL COST(Y)

Fallen by -0.72% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -296.53 %

NET SALES(Q)

Highest at USD 23,959 MM

OPERATING PROFIT(Q)

Highest at USD 3,984 MM

OPERATING PROFIT MARGIN(Q)

Highest at 16.63 %

PRE-TAX PROFIT(Q)

Highest at USD 3,156 MM

NET PROFIT(Q)

Highest at USD 2,391 MM

EPS(Q)

Highest at USD 4.27

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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

Operating Cash Flow

Highest at USD 9,820 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Interest Coverage Ratio

Highest at 1,125.42

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend per share

Highest at USD 0 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 28.11% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Net Sales

Highest at USD 23,959 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 3,984 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 16.63 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 3,156 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 2,391 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 4.27

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Lowest at -296.53 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -0.72% (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 515 MM

in the last five periods

MOJO Watch

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

Depreciation (USD MM)