As of 2026-08-20 · Last updated: 2026-08-21 · Source: SEC EDGAR (XBRL companyfacts, CIK 0000060667), stockanalysis (price, stats, financials, ratios, consensus), Company IR · Prices & financials updated periodically (not real-time) · Information tool (not investment advice)
Operating income covers interest at least 4 times over, a stable cushion.
Metrics · Interest coverage 6.3x · Current ratio 1.10 · book equity distorted by buybacks (D/E not used)
💲Is the price expensive now?
Not cheap (fair to slightly pricey)
Because it is a good, popular company, those expectations are already priced in.
Metrics · P/E 17.3
💡Book equity is negative from buybacks — not losses. ROA 12.6% and 6.3x interest coverage are stable, and ~17x forward P/E is undemanding.
Compiled from public financial data. Not a recommendation to buy or sell any security. · Source: stockanalysis (forward P/E; ROA, interest coverage, current ratio, margins TTM), as of 2026-08-20
Business Summary · Key Value Metrics
The #2 home-improvement retailer in the U.S. and Canada (Home Depot is #1). It sells building materials, appliances, lumber, and tools through 1,761 stores (as of 2026-07-31) and online, and is pushing to grow Pro (professional contractor) customers. TTM revenue $90.4B with an 11.4% operating margin.
Current Price
$217.34
-1.21%-$2.66· Close 2026-08-20
Analyst Consensus Target (external reference)
$254.55
Avg. of 35 external analysts · stockanalysis (35-analyst consensus, Buy)
P/E (TTM)
18.4x
TTM
Operating Margin
11.4%
TTM
Net Margin
7.4%
TTM
ROA
12.6%
TTM (ROA; equity is negative)
Dividend Yield
2.30%
62 consecutive years
Market Cap
$121.9B
As of 2026-08-20
Economic Moat · Key Business Segments
Lowe's is the #2 home-improvement retailer, operating 1,761 stores across the U.S. and Canada (as of 2026-07-31); Home Depot is #1. Recent acquisitions of FBM (building-materials distribution, $8.8B, 2025) and ADG (interior-finishes installation and distribution, $1.3B, 2025) are expanding its Pro (professional contractor) base and distribution reach. Its TTM operating margin of 11.4% trails #1 Home Depot's 12.4% (source: company IR, stockanalysis).
Store Network Scale
1,761 stores across all 50 U.S. states plus Canada (as of 2026-07-31), giving #2-scale buying power and logistics.
Pro Customer Expansion
The 2025 acquisitions of FBM ($8.8B) and ADG ($1.3B) strengthen distribution and installation services for professional contractors.
Economies of Scale
Bulk purchasing and a logistics network secure a cost advantage.
Brand Recognition
The #2 brand in home improvement, behind Home Depot.
10-Year Financial Trends
Revenue grew modestly at a 9-year CAGR of +3.2% ($65.0B in 2016 to $86.3B in 2025). Net income (+8.9%) and especially diluted EPS (+14.6%) rose far faster—driven more by heavy buybacks than by the business: diluted shares fell 36%, from 881M in 2016 to 560M in 2025. Continued buybacks eroded equity, which turned negative in FY2021 (ended 2022-01-28) and was about -$9.9B at FY2025-end. FY2023 revenue fell -11% on the sale of part of the Pro distribution business. In short, EPS growth reflects buybacks more than expansion (source: SEC EDGAR 10-K XBRL, stockanalysis).
10-Year Growth
Revenue$86.3B · CAGR +3.2%
Operating Income$10.2B · CAGR +6.5%
EPS$11.85 · CAGR +14.6%
10-Year Valuation
P/E (year-end)22.5x · avg 20.2x
ROA12.3% · avg 12.9%
Operating Margin11.8% · avg 10.5%
📊 Annual Data Table (LOW) — expand/collapse
Year
Revenue (B$)
Op. Income (B$)
EPS ($)
P/E (x)
ROA (%)
Op. Margin (%)
2016
65
5.8
3.47
—
9
9
2017
68.6
6.6
4.09
—
9.8
9.6
2018
71.3
4
2.84
—
6.7
5.6
2019
72.1
6.3
5.49
—
10.8
8.8
2020
89.6
9.6
7.75
—
12.5
10.8
2021
96.3
12.1
12.04
19.52
18.9
12.6
2022
97.1
10.2
10.17
21.24
14.7
10.5
2023
86.4
11.6
13.2
16.63
18.5
13.4
2024
83.7
10.5
12.23
21.26
16.1
12.5
2025
86.3
10.2
11.85
22.54
12.3
11.8
— = no data for that year/metric (P/E omitted before EPS turned positive)
9-Year CAGR: Revenue +3.2% · Operating Income +6.3% · Net Income +8.9% · EPS +14.6%
Source: SEC EDGAR XBRL (companyfacts, CIK 0000060667), stockanalysis, company IR. Lowe's has a late-Jan/early-Feb year-end (e.g., the fiscal year ended 2026-01-30). To match EDGAR XBRL frames and stockanalysis, year labels use the fiscal year's 'start' year (e.g., 'FY2025' = 2025-02-01 to 2026-01-30). Revenue, operating income, EPS, and operating margin cover 10 years (2016–2025); P/E covers the last 5 years (stockanalysis). Because buybacks turned equity negative starting in FY2021 (about -$9.9B at FY2025-end), the ROE and P/B series are replaced by ROA due to equity distortion.
Mega-Cap Value Metric Comparison
Lowe's is the #2 home-improvement retailer, with an operating margin (11.4% vs. 12.4%) slightly below #1 Home Depot (HD). Its P/E (18.4x), however, is lower than Home Depot's (24.1x), so valuation is less demanding (source: stockanalysis).
Metric
★ LOW
HD
Operating Margin
11.4%
12.4%
P/E (TTM)
18.4
24.1
Dividend Yield
2.30%
2.71%
P/E and operating margin = TTM · Source: stockanalysis, company filings, 2026-08-20.
Key Risk Factors (from 10-K)
●
Housing Slowdown— High mortgage rates and slower home sales can delay large remodeling projects and soften DIY consumer demand. The company cut its FY2026 outlook to the low end — sales of $92.0B (was $92-94B), comparable sales flat (was flat to +2%), and adjusted diluted EPS of about $12.25 (was $12.25-12.75).Source: Company 10-K Risk Factors · Aug 19, 2026 8-K
●
Buyback-Driven Negative Equity— Sustained buybacks turned equity negative starting in FY2021 (about -$9.9B at FY2025-end)—both the source of fast EPS growth and the flip side of rising financial leverage.Source: SEC EDGAR XBRL
●
Smaller Than Home Depot— It trails #1 Home Depot in revenue scale and operating margin. It acquired FBM and ADG to grow Pro customers, but integration results remain to be seen.Source: Company IR, 10-K
✦ ValueCrab Dashboard PreviewLOW $217.34 -1.21% · as of 2026-08-20
Q. What are Lowe's (LOW) key value-investing metrics?P/E (TTM) 18.4, operating margin 11.4%, net margin 7.4%, ROA 12.6%, dividend yield 2.30%, and a 9-year revenue CAGR of +3.2% (source: stockanalysis, as of 2026-08-20). Because buybacks left equity negative, ROE and P/B are of limited use.
Q. How is Lowe's as a dividend stock?It's a 'Dividend King' that has raised its dividend for 62 straight years. The current yield is about 2.30% and the payout ratio is about 42%. (This is informational and not a recommendation to buy or sell.)
Q. Why did EPS grow much faster than net income?Because heavy buybacks cut diluted shares about 36% over nine years (881M to 560M). Revenue CAGR was just +3.2%, but capital allocation (buybacks) lifted EPS at a +14.6% CAGR. It's important to separate business growth from EPS growth.
Q. How does it compare with Home Depot?Lowe's is the #2 home-improvement retailer, with an operating margin slightly below #1 Home Depot (11.4% vs. 12.4%). It recently acquired FBM and ADG to grow Pro (professional contractor) customers.