Lowe's Companies, Inc. (LOW) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Consumer Cyclical · Home Improvement Retail
Is Lowe's Companies, Inc. a safe investment right now?
Lowe's Companies, Inc.'s Altman Z-Score of 3.26 places it in the safe zone. Our fair value estimate is $213.84 (Fairly Valued). Moat rating: 3.4/5 stars.
Could Lowe's Companies, Inc. go bankrupt? Altman Z-Score analysis
Z-Score of 3.26 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives LOW's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.0276 | 1.2 | 0.03 |
| B · Retained Earnings / Total Assets | RE / TA | -0.2002 | 1.4 | -0.28 |
| C · EBIT / Total Assets | EBIT / TA | 0.1898 | 3.3 | 0.63 |
| D · Market Cap / Total Liabilities | MCap / TL | 2.1436 | 0.6 | 1.29 |
| E · Revenue / Total Assets | Rev / TA | 1.5936 | 1.0 | 1.59 |
How has LOW's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2023 | 3.99 | Safe |
| 2024 | 4.01 | Safe |
| 2025 | 3.76 | Safe |
| 2026 | 3.26 | Safe |
Source: Calculated from LOW's latest 10-K filing on SEC EDGAR.
What is Lowe's Companies, Inc. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $12.15 | Proprietary blend of reported actuals + analyst consensus, weighted by α |
| Last Year EPS | $11.85 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $12.61 | 33 analysts consensus |
| Trailing P/E | 20.7x | Current market pricing |
| Fair P/E (β discount) | 17.6x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Stable | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $285.58 (33 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Lowe's Companies, Inc. have a durable competitive advantage?
Moat rating: 3.4/5.
What makes up LOW's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 4/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 3/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is LOW's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2023 | 51.7% | — |
| 2024 | 55.9% | Rising |
| 2025 | 50.0% | Declining |
| 2026 | 34.2% | Declining |
Source: ROIC calculated from SEC EDGAR filings.
Is Lowe's Companies, Inc.'s dividend safe?
Can Lowe's Companies, Inc. afford its dividend?
Payout ratio is 40.1%. FCF covers the dividend 2.9x. 42 consecutive years of payments.
Lowe's Companies, Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $86.3B | $83.7B | $97.1B | Declining |
| Net Income | $6.7B | $7.0B | $6.4B | Stable |
| Free Cash Flow | $7.7B | $7.7B | $6.8B | Rising |
| Gross Margin | 33.5% | 33.3% | 33.2% | Stable |
Recent events that affect our LOW analysis
LOW earnings report scheduled
Upcoming report. Consensus EPS estimate: $2.96. Revenue estimate: $22.84B. Our current Fair Value: $213.84 — a significant beat or miss could shift this estimate.
LOW analyst consensus: 63% bullish (22 of 35 analysts)
4 Strong Buy, 18 Buy, 12 Hold, 0 Sell, 1 Strong Sell. Consensus target: $285.58 (16.5% upside). Compare with our independent Fair Value: $213.84.
LOW paid $1.2000/share dividend
Dividend Safety Grade: A. Payout ratio: 40.1%.
LOW filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
LOW beat EPS estimates by 1.9%
Reported EPS: $1.98 vs estimate $1.94. Earnings strength supports our Fair Value of $213.84 (12.8% below current price).
LOW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LOW paid $1.2000/share dividend
Dividend Safety Grade: A. Payout ratio: 40.1%.
LOW filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
LOW beat EPS estimates by 3.6%
Reported EPS: $3.06 vs estimate $2.95. Earnings strength supports our Fair Value of $213.84 (12.8% below current price).
LOW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LOW paid $1.2000/share dividend
Dividend Safety Grade: A. Payout ratio: 40.1%.
LOW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LOW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LOW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LOW filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
LOW beat EPS estimates by 2.2%
Reported EPS: $4.33 vs estimate $4.24. Earnings strength supports our Fair Value of $213.84 (12.8% below current price).
LOW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LOW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LOW paid $1.2000/share dividend
Dividend Safety Grade: A. Payout ratio: 40.1%.
LOW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LOW filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
LOW beat EPS estimates by 1.4%
Reported EPS: $2.92 vs estimate $2.88. Earnings strength supports our Fair Value of $213.84 (12.8% below current price).
LOW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LOW paid $1.1500/share dividend
Dividend Safety Grade: A. Payout ratio: 40.1%.
LOW filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
LOW beat EPS estimates by 4.8%
Reported EPS: $1.93 vs estimate $1.84. Earnings strength supports our Fair Value of $213.84 (12.8% below current price).
LOW filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
LOW paid $1.1500/share dividend
Dividend Safety Grade: A. Payout ratio: 40.1%.
Common questions about Lowe's Companies, Inc.
What is Lowe's Companies, Inc. stock price today?
Lowe's Companies, Inc. (LOW) stock price is $245.19 as of the latest market close, traded on the NYSE exchange.
What does Lowe's Companies, Inc. do?
Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States and Canada. It provides a line of products for construction, maintenance, repair, remodeling, and decorating. It also offers home improvement products, such as appliances, seasonal and outdoor living, lumber, lawn and garden, kitchens and bath, hardware, building materials, millwork, paint, rough plumbing, tools, electrical, flooring, and décor.
What is Lowe's Companies, Inc. market cap?
Lowe's Companies, Inc. has a market capitalization of $137.32B, classifying it as a large-cap stock in the Consumer Cyclical sector.
What sector and industry is LOW in?
Lowe's Companies, Inc. operates in the Consumer Cyclical sector, specifically within the Home Improvement Retail industry. It trades on the NYSE under the ticker symbol LOW.
Is LOW stock overvalued or undervalued?
Based on our valuation model, Lowe's Companies, Inc. trades 14.7% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $213.84
- Current Price: $245.19
- Valuation Zone: Fairly Valued
What is LOW stock forecast and analyst target price?
Based on 33 Wall Street analysts, the consensus price target for Lowe's Companies, Inc. is $285.58, implying upside of 16.5% from the current price.
- Analyst High Target: $325.00
- Analyst Low Target: $228.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Lowe's Companies, Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for Lowe's Companies, Inc.:
- Revenue growth (current year est.): 7.9%
- EPS growth (current year est.): 2.7%
- Revenue growth (next year est.): 3.5%
- EPS growth (next year est.): 8.2%
What are Lowe's Companies, Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $86.3B | Declining |
| Net Income | $6.7B | Stable |
| Free Cash Flow | $7.7B | Rising |
| Gross Margin | 33.5% | Stable |
What is LOW's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 20.7x
- Forward P/E (next 12 months est.): 18.0x
- FairValueLabs Fair P/E: 17.6x
How volatile is LOW stock?
Lowe's Companies, Inc. has a beta of 0.96, meaning it is roughly in line with overall market volatility. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Lowe's Companies, Inc. have?
Lowe's Companies, Inc.'s balance sheet shows:
- Total Cash: $982.0M
- Total Debt: $44.68B
- Net Cash Position: $-43.70B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Lowe's Companies, Inc.'s free cash flow?
Lowe's Companies, Inc. generated $4.99B in trailing twelve-month free cash flow (from $9.86B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Lowe's Companies, Inc. pay a dividend, and is it safe?
Yes, Lowe's Companies, Inc. pays a regular dividend. Here are the key metrics:
- Dividend Yield: 1.9%
- Payout Ratio: 40.1%
- Consecutive Years Paid: 42
- 5-Year Dividend Growth: -3.0%
- FairValueLabs Safety Grade: A
Is Lowe's Companies, Inc. at risk of going bankrupt?
Lowe's Companies, Inc.'s Altman Z-Score is 3.26, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does Lowe's Companies, Inc. have a durable competitive advantage?
Lowe's Companies, Inc. scores 3.4/5 stars (Narrow moat) in our moat analysis:
- ROIC Stability: 4/5
- Gross Margin Trend: 3/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
How do I buy LOW stock?
LOW shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol LOW
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is LOW a value stock or speculative?
FairValueLabs classifies Lowe's Companies, Inc. as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of Lowe's Companies, Inc.?
The current CEO of Lowe's Companies, Inc. is Mr. Marvin R. Ellison.
What is LOW's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $11.86
- Forward EPS (next 12 months est.): $13.64
- Analyst consensus EPS (this year): $12.61
- Analyst consensus EPS (next year): $13.64
Other Consumer Cyclical companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
LOW analysis methodology: How we calculate fair value, Z-Scores, and moat ratings