Lowe's Companies (LOW) Fundamental Analysis: Revenue, Earnings & Valuation

7.19 / 10

Outperform

Lowe's fundamental analysis reveals a strong profile with key positives: Fixed assets turnover ratio (4.74) and Total assets turnover ratio (1.97) rank in high-performing groups, while Profit-MV (0.99) and Cash-MV (1.42) add value. However, Net cash flow from operating activities per share shows a YoY decline (-26.7%), and Equity multiplier metrics indicate higher leverage. The Operating cycle is moderately long (110.7 days), limiting quick returns. Overall, fundamentals are supportive but not without cautionary elements.

Analysis Checks(8/10)

Net cash flow from operating activities per share (YoY growth rate %)

Value-26.73

Score2/3

Weight3.63%

1M Return1.78%

Asset-liability ratio (%)

Value133.02

Score2/3

Weight4.31%

1M Return2.01%

Shareholders’ equity attributable to parent company / Total liabilities (%)

Value-0.25

Score2/3

Weight4.17%

1M Return1.97%

Operating cycle

Value110.66

Score1/3

Weight4.10%

1M Return1.97%

Equity multiplier

Value5.29

Score2/3

Weight4.91%

1M Return2.29%

Profit-MV

Value0.99

Score3/3

Weight32.23%

1M Return13.10%

Fixed assets turnover ratio

Value4.74

Score3/3

Weight10.90%

1M Return4.66%

Total assets turnover ratio

Value1.97

Score3/3

Weight9.64%

1M Return4.44%

Equity multiplier (DuPont analysis %)

Value-2.90

Score0/3

Weight-2.36%

1M Return-1.33%

Cash-MV

Value1.42

Score3/3

Weight28.48%

1M Return10.76%

Is LOW fundamentally strong?

LOW scores 7.19/10 on fundamentals and holds a Discounted valuation at present. Backed by its 0.00% ROE, 8.04% net margin, 23.04 P/E ratio, -15.04 P/B ratio, and 0.50% earnings growth, these metrics solidify its Outperform investment rating.