Lowe's Companies Inc.

LOW

247.31 (-0.40%) 1.00

139.64(B)

Consumer Discretionary

Specialty Retail

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

Holdings:

Cost basis:

Lowe's Companies Inc. (LOW) price target and intrinsic value estimate

LOW's fair price estimate is $172.9

This valuation is based on a fair P/E of 15.3 and EPS estimates of $11.30

The median analyst price target for LOW is $295.0.

Analyst price targets range from $216.0 to $316.0

Is LOW overvalued or undervalued?

LOW is currently trading at $247.31

LOW is overvalued by 43% using the pevaluation method.

LOW is undervalued by 16% compared to median analyst price targets.

Do you agree with this valuation?

Valuation

PEvaluation

Low $129.6

Median $172.9

High $216.1

Fair P/E

Margin of safety

Analyst valuation

Low $216.0

Median $295.0

High $316.0

Strong Buy4

Buy17

Hold14

Sell1

Strong Sell2

Discounted cash-flow

TTM FCFFCF est.Growth FCFTerminal FCF

Discount rate:

10%

Terminal rate:

Growth phase length:

Growth phase rate:

10%

Economic moat: Medium

Overview

Market data

Market cap:$139.64(B)

Enterprise value:$176.15(B)

Total Equity:$-13.42(B)

Shares outstanding:564.65(M)

Div. yield:1.82%

P/S:1.68

P/E:20.59

P/FCF:17.86

P/B:N/A

EPS:$12.0

FCF per share:$13.8

Dividend per share:$4.5

Income (TTM)

Revenue$83.72(B)

Gross profit$27.81(B)

EBITDA$12.28(B)

Net income$6.85(B)

Gross margin33.2%

Net margin8.2%

Balance sheet

Total assets$44.74(B)

Total liabilities$58.16(B)

Cash & Short-term inv.$3.27(B)

Long-term debt$32.47(B)

Debt issued$0

Debt repaid$-547.00(M)

Cash flow (TTM)

FCF$7.82(B)

CapEx$-2.00(B)

Dividends paid$-2.55(B)

Stock issued$157.00(M)

Stock repurchased$-2.88(B)

Stock-based comp.$214.00(M)

Future Growth

Revenue

CAGR: 3.3%

FY+1$83.33(B)

FY+2$84.50(B)

FY+3$87.62(B)

FY+4$91.75(B)

FY+5$94.86(B)

Net Income

CAGR: 7.3%

FY+1$6.76(B)

FY+2$6.99(B)

FY+3$7.52(B)

FY+4$8.26(B)

FY+5$8.97(B)

EPS

CAGR: 9.5%

FY+1$11.90

FY+2$12.50

FY+3$13.75

FY+4$15.40

FY+5$17.10

FCF per share

CAGR: 2.5%

FY+1$19.55

FY+2$18.98

FY+3$20.52

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Historical Financials

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YearlyQuarterly

Income

RevenueNet IncomeCOGSGross ProfitTotal OpEx.R&DSG&AOperating IncomeInterest ExpenseInterest IncomePre-tax incomeIncome tax

Cash flow

FCFCFONet IncomeD&AStock-based Comp.CFFStock IssuedStock RepurchasedDebt IssuedDebt RepaidDividend PaidCFIAcquisitionsDivestituresCapital Expenditures

Balance sheet

Total AssetsTotal LiabilitiesCurrent assetsCash and EquivalentsShort-term investmentsInventoriesReceivablesNon-current assetsNet PP&EGoodwillCurrent liabilitiesAccounts payableNon-current liabilitiesLong-Term DebtTotal Equity

Shares outstanding

Shares (Basic)Shares (Diluted)

Per share data

EPS (Basic)EPS (Diluted)FCF/ShareDividend/ShareBook value/Share

Ratios

P/EP/FCFP/BP/SEV/EarningsEV/FCFDebt/EquityPayout ratio

Margins

Net Income MarginOperating MarginGross MarginEBITDA MarginFCF Margin

Returns

ROICROAROCEROE

Market Cap.