0.87%
6.97%
0.83%
7.53%
24.04%
11.23%
127.12%

Company Description

Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States and internationally.The company offers a line of products for construction, maintenance, repair, remodeling, and decorating.It 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, dรฉcor, lighting, and electrical.


It also offers installation services through independent contractors in various product categories; extended protection plans; and in-warranty and out-of-warranty repair services.The company sells its national brand-name merchandise and private brand products to homeowners, renters, and professional customers.As of January 28, 2022, it operated 1,971 home improvement and hardware stores.


The company also sells its products through websites comprising Lowes.com and Lowesforpros.com; and through mobile applications.Lowe's Companies, Inc.was founded in 1921 and is based in Mooresville, North Carolina.

Market Data

Last Price 264
Change Percentage 0.87%
Open 263.65
Previous Close 261.73
Market Cap ( Millions) 149068
Volume 1629248
Year High 287.01
Year Low 211.8
M A 50 260.23
M A 200 246.98

Financial Ratios

FCF Yield 5.25%
Dividend Yield 1.72%
ROE -48.23%
Debt / Equity -296.00%
Net Debt / EBIDTA 294.92%
Price To Book -11.15
Price Earnings Ratio 21.84
Price To FCF 19.06
Price To sales 1.78
EV / EBITDA 15.01

News

Business Breakdown

Expected Mid-Term Growth

Segment nยฐ1 -> Appliances

Expected Growth : 4.83 %

What the company do ?

Lowe's Companies, Inc. offers a wide range of appliances from top brands, including refrigerators, ovens, dishwashers, and more for home and kitchen needs.

Why we expect these perspectives ?

Lowe's Companies, Inc. appliances segment growth of 4.83% is driven by increasing consumer spending on home improvement, rising demand for energy-efficient and smart appliances, and strategic partnerships with suppliers to offer competitive pricing. Additionally, the company's focus on omnichannel retailing and investments in digital capabilities have enhanced the shopping experience, contributing to the segment's growth.

Segment nยฐ2 -> Seasonal & Outdoor Living

Expected Growth : 4.85 %

What the company do ?

Seasonal & Outdoor Living from Lowe's Companies, Inc. offers products for outdoor spaces, including patio furniture, grills, and seasonal decorations.

Why we expect these perspectives ?

Lowe's Seasonal & Outdoor Living segment growth of 4.85% is driven by increasing consumer spending on outdoor living spaces, rising popularity of DIY projects, and favorable weather conditions. Additionally, the company's strategic initiatives, such as investments in e-commerce and omnichannel capabilities, have contributed to the segment's growth.

Segment nยฐ3 -> Lumber

Expected Growth : 4.65 %

What the company do ?

Lumber from Lowe's Companies, Inc. refers to the wide range of wood and building materials offered by the home improvement retailer, including plywood, MDF, and pressure-treated lumber.

Why we expect these perspectives ?

Lowe's Companies, Inc.'s lumber segment growth of 4.65% is driven by increasing demand for home improvement and repair projects, fueled by a strong housing market and rising DIY trends. Additionally, the company's strategic investments in e-commerce and supply chain optimization have improved customer experience and increased sales.

Segment nยฐ4 -> Lawn & Garden

Expected Growth : 4.83 %

What the company do ?

Lawn & Garden from Lowe's Companies, Inc. offers a wide range of outdoor living products, including patio furniture, grills, gardening tools, and lawn care equipment.

Why we expect these perspectives ?

Lowe's Lawn & Garden segment growth of 4.83% is driven by increasing consumer spending on outdoor living, rising demand for eco-friendly and sustainable gardening products, and the company's strategic investments in e-commerce and omnichannel capabilities, enabling customers to seamlessly shop online and in-store.

Segment nยฐ5 -> Kitchens & Bath

Expected Growth : 4.83 %

What the company do ?

Kitchens & Bath from Lowe's Companies, Inc. offers a wide range of products and services for kitchen and bathroom remodeling, including cabinets, countertops, and fixtures.

Why we expect these perspectives ?

The 4.83% growth in Kitchens & Bath from Lowe's Companies, Inc. is driven by increasing consumer spending on home renovations, rising demand for smart and water-efficient products, and a growing trend towards aging-in-place solutions. Additionally, Lowe's strategic investments in e-commerce and omnichannel capabilities are enhancing the customer experience, contributing to the segment's growth.

Segment nยฐ6 -> Hardware

Expected Growth : 4.83 %

What the company do ?

Hardware from Lowe's Companies, Inc. refers to the wide range of tools, building materials, and lawn and garden products offered by the home improvement retailer.

Why we expect these perspectives ?

Lowe's Companies, Inc. Hardware segment growth of 4.83% is driven by increasing demand for home improvement projects, rising popularity of DIY and online shopping, and strategic investments in e-commerce and digital capabilities. Additionally, the company's focus on customer experience, loyalty programs, and competitive pricing also contribute to the segment's growth.

Segment nยฐ7 -> Building Materials

Expected Growth : 4.83 %

What the company do ?

Lowe's Companies, Inc. offers a wide range of building materials, including lumber, drywall, roofing, siding, and insulation for construction and renovation projects.

Why we expect these perspectives ?

Lowe's building materials segment growth of 4.83% is driven by increasing demand for home improvement projects, fueled by rising housing prices and low interest rates. Additionally, the company's focus on omnichannel retailing, investments in e-commerce, and strategic partnerships with professional contractors are contributing to the segment's growth.

Segment nยฐ8 -> Millwork

Expected Growth : 4.65 %

What the company do ?

Millwork from Lowe's Companies, Inc. offers custom interior design solutions, including molding, trim, and doors, for homeowners and professionals.

Why we expect these perspectives ?

Lowe's Companies, Inc.'s millwork segment growth of 4.65% is driven by increasing demand for home renovation and remodeling, fueled by rising housing prices and aging housing stock. Additionally, the company's focus on providing high-quality, customizable products and its strong supplier relationships contribute to the growth.

Segment nยฐ9 -> Paint

Expected Growth : 4.83 %

What the company do ?

Paint from Lowe's Companies, Inc. offers a wide range of interior and exterior paints, stains, and supplies from top brands, providing customers with a variety of options for their painting projects.

Why we expect these perspectives ?

The 4.83% growth of Paint from Lowe's Companies, Inc. is driven by increasing DIY projects, homeowners' desire for home renovation, and a growing demand for eco-friendly and low-VOC paint options. Additionally, Lowe's strategic pricing, effective supply chain management, and strong brand recognition contribute to the segment's growth.

Segment nยฐ10 -> Rough Plumbing

Expected Growth : 4.78 %

What the company do ?

Rough Plumbing from Lowe's Companies, Inc. refers to the initial stage of plumbing installation, involving the installation of pipes, fittings, and fixtures before finishing touches.

Why we expect these perspectives ?

Rough plumbing growth at Lowe's Companies, Inc. is driven by increasing demand for home renovation and repair, fueled by rising housing prices and aging housing stock. Additionally, the company's focus on omnichannel retailing, improved supply chain efficiency, and strategic pricing contribute to the 4.78% growth rate.

Segment nยฐ11 -> Tools

Expected Growth : 4.83 %

What the company do ?

Lowe's Companies, Inc. offers a wide range of tools from top brands, including power tools, hand tools, and lawn and garden tools for DIY projects and professional use.

Why we expect these perspectives ?

Lowe's Companies, Inc. tools segment growth of 4.83% is driven by increasing DIY and home improvement projects, fueled by a strong housing market, rising consumer confidence, and a growing demand for smart home devices. Additionally, Lowe's strategic investments in e-commerce, digital marketing, and store remodels have enhanced the customer experience, contributing to sales growth.

Segment nยฐ12 -> Electrical

Expected Growth : 4.83 %

What the company do ?

Electrical from Lowe's Companies, Inc. offers a wide range of electrical products and services for residential and commercial customers.

Why we expect these perspectives ?

Lowe's Electrical segment growth of 4.83% is driven by increasing demand for smart home devices, energy-efficient solutions, and rising DIY activities. Additionally, the company's focus on omnichannel retailing, improved in-store experience, and strategic partnerships with electrical suppliers contribute to the growth.

Segment nยฐ13 -> Flooring

Expected Growth : 4.83 %

What the company do ?

Flooring from Lowe's Companies, Inc. offers a wide selection of flooring products, including hardwood, laminate, tile, carpet, and more, for various rooms and decor styles.

Why we expect these perspectives ?

Lowe's flooring segment growth of 4.83% is driven by increasing demand for home improvement, rising consumer spending, and a growing trend towards home renovation. Additionally, Lowe's strategic initiatives, such as its 'Smart Home' concept and online platform enhancements, are contributing to the segment's growth.

Segment nยฐ14 -> Decor

Expected Growth : 4.83 %

What the company do ?

Decor from Lowe's Companies, Inc. offers a wide range of home decor products, including wall decor, decorative accents, and seasonal decorations.

Why we expect these perspectives ?

Lowe's decor segment growth of 4.83% is driven by increasing consumer spending on home improvement, rising demand for smart home devices, and growing popularity of DIY projects. Additionally, Lowe's strategic investments in e-commerce, improved in-store experience, and targeted marketing efforts have contributed to the segment's growth.

Segment nยฐ15 -> Other

Expected Growth : 4.83 %

What the company do ?

The 'Other' segment from Lowe's Companies, Inc. includes its Canadian retail operations and other non-US based businesses.

Why we expect these perspectives ?

Lowe's 'Other' segment, with 4.83% growth, is driven by increasing demand for home improvement services, expansion of Lowe's for Pros loyalty program, and growth in its e-commerce platform. Additionally, the company's focus on omnichannel retailing, investments in technology, and strategic partnerships are contributing to the segment's growth.

Lowe'S Companies, Inc. Products

Product Range What is it ?
Lumber Lowe's offers a wide range of lumber products, including dimensional lumber, plywood, oriented strand board (OSB), and pressure-treated lumber.
Building Materials Lowe's provides a variety of building materials, including drywall, roofing materials, insulation, and siding.
Kitchen and Bath Fixtures Lowe's offers a wide selection of kitchen and bath fixtures, including sinks, faucets, toilets, and shower systems.
Appliances Lowe's sells a range of appliances, including refrigerators, ovens, dishwashers, and washing machines.
Paint and Decorating Lowe's offers a variety of paint, stains, and decorating supplies, including brushes, rollers, and painting tools.
Lawn and Garden Lowe's provides a range of lawn and garden products, including seeds, fertilizers, and gardening tools.
Tools and Hardware Lowe's sells a variety of tools and hardware, including power tools, hand tools, and fasteners.
Smart Home and Security Lowe's offers a range of smart home and security products, including thermostats, security cameras, and door locks.
Plumbing and Water Heaters Lowe's provides a variety of plumbing and water heater products, including pipes, fittings, and water heater systems.

Lowe's Companies, Inc.'s Porter Forces

Lowe's faces moderate threat from substitutes, as customers can opt for alternative home improvement retailers or online marketplaces. However, the company's strong brand presence and wide product offerings mitigate this threat to some extent.

Lowe's customers have relatively low bargaining power due to the company's large scale and diversified product offerings. Additionally, the home improvement retail market is highly competitive, which reduces customers' ability to negotiate prices.

Lowe's suppliers have moderate bargaining power due to the company's dependence on a few large suppliers for certain products. However, Lowe's large scale and diversified supplier base mitigate this threat to some extent.

The threat of new entrants is low in the home improvement retail market due to high barriers to entry, including significant capital requirements and the need for a large scale of operations to achieve economies of scale.

The home improvement retail market is highly competitive, with Lowe's facing intense rivalry from Home Depot and other smaller players. This competition leads to high marketing and advertising expenses, as well as pressure to maintain low prices.

Capital Structure

Value
Debt Weight 171.89%
Debt Cost 4.87%
Equity Weight -71.89%
Equity Cost 9.67%
WACC 1.41%
Leverage -239.11%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
LEN Lennar Corporation, together with its subsidiaries, operates as a homebuilder primarily under the Lennar brand in the United States. It operates through Homebuilding East, Homebuilding Central, Homebuilding Texas, Homebuilding West, โ€ฆ
PHM PulteGroup, Inc., through its subsidiaries, primarily engages in the homebuilding business in the United States. It acquires and develops land primarily for residential purposes; and constructs housing on such land. โ€ฆ
BKNG Booking Holdings Inc. provides travel and restaurant online reservation and related services worldwide. The company operates Booking.com, which offers online accommodation reservations; Rentalcars.com that provides online rental car reservation services; โ€ฆ
HVT Haverty Furniture Companies, Inc. operates as a specialty retailer of residential furniture and accessories in the United States. The company offers furniture merchandise under the Havertys brand name. It also โ€ฆ
HD The Home Depot, Inc. operates as a home improvement retailer. It operates The Home Depot stores that sell various building materials, home improvement products, lawn and garden products, and dรฉcor โ€ฆ

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
264.0$
Current Price
264$
Potential
0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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