Lowe's LOW
Lowe's is a US home improvement retailer, selling do-it-yourself and professional products. Lowe's trades at a P/E of 16.0 (score 8.0) and a FCF yield of 4.35%, but earnings growth is flat (0.00%) and momentum is very negative (score 3.29), reflecting the weakness in the home improvement sector.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Lowe's is a US home improvement retailer, selling do-it-yourself and professional products. Lowe's trades at a P/E of 16.0 (score 8.0) and a FCF yield of 4.35%, but earnings growth is flat (0.00%) and momentum is very negative (score 3.29), reflecting the weakness in the home improvement sector.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.3 |
| Quality / Moat | 5.0 |
| Valuation | 6.3 |
| Growth | 5.2 |
| Dividend | 7.3 |
| Momentum | 3.3 |
| Risk & Context | 6.6 |
OVERALL SCORE: 5.6/10
Context and risks
The rise in 10-year Treasury yields (5.17%) and the weakness in the home improvement sector, reflected in the 25% drop over 12 months, increase the risk of a prolonged slowdown in housing demand. However, Lowe's has no direct exposure to interest rates on its balance sheet (ND/EBITDA 3.05x, within normal range) and its business is defensive within discretionary consumer.
News considered in the analysis
- Lowe's Companies (LOW) Starts 20 Minute Drone Delivery Pilot — Piloto de entrega con drones, aún en fase temprana y sin impacto material en beneficios a corto plazo, pero muestra innovación operativa.
- Is Home Depot’s Dividend Safe if Housing Stays Frozen? — Artículo especulativo sobre el dividendo de un competidor, sin información nueva sobre Lowe's.
- Lowe's (LOW) Stock Looks Reasonable On a 25% One Year Slide — Opinión de análisis sobre la valoración, sin hechos nuevos que afecten a los fundamentales.
- Is Home Depot's Next Big Thing Already In Its Stores? — Artículo sobre un competidor, sin impacto directo en Lowe's.
- Musk’s ‘Zuckerberg moment,’ mortgage rates, and Google’s space bet — Video de mercado general, sin información específica sobre Lowe's.
Verdict: Hold; wait for earnings growth to recover or for the price to show signs of stabilization before adding to the position.
Main risk: The main risk is exposure to the housing cycle and high interest rates (10-year at 5.17%), which could prolong the decline in revenue and earnings in a weak demand environment.
Other Consumer Cyclical companies
Neighbours in the sector ranking, to compare without going back to the index.
See all 1,000+ companies in the index →