NYSE · Consumer Cyclical

Lowe's Companies, Inc.

LOW · Home Improvement Retail

$222.20

▲ 4.93 (2.27%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

C⤢

Gross Profit Margin 32.7%

Operating Margin 11.1%

Net Income Margin 7.1%

Fin. Health

D⤢

Years to Pay Off Debt 26.1 yrs

Working Capital vs Long-Term Debt -$34.9B

Working Capital $1.9B

Valuation

D⤢

Price-to-Book N/A (neg. equity)

Cash Flow

B⤢

Free Cash Flow $2.8B

CapEx % of Net Income 32.0%

Owner Earnings $2.8B

Profitability

Gross Profit Margin 32.7%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 11.1%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 7.1%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 26.1 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$34.9B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $1.9B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $2.8B

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 32.0%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $2.8B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Lowe's Companies, Inc.

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. The company 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. In addition, it provides installation services through independent contractors in various product categories; and extended protection plans and repair services. Further, the company provides design, distribution, and installation services for interior surface finishes to home builders and property managers. It sells its national brand-name merchandise and private brand products to professional customers, individual homeowners, and renters. The company serves its products through Lowes.com website, mobile applications, retail home improvement stores and outlet stores, and its branches. Lowe's Companies, Inc. was founded in 1921 and is based in Mooresville, North Carolina.

Market Data

Market Cap $124.6B

Enterprise Value $167.4B

P/E (TTM) 18.78

Dividend Yield 2.21%

Exchange NYSE

Key Margins

Gross Profit 32.7%

Operating Margin 11.1%

Net Margin 7.1%

Company Info

Sector Consumer Cyclical

Industry Home Improvement Retail

Employees 167000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Lowe's Companies, Inc. at $222.20.

The business passes only 2 of 6 of Graham's defensive criteria — well below his required standard.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q2 2026	Q4 2025
Gross Profit %	32.7%▼	34.2%
Operating Margin %	11.1%▼	11.9%
Net Income %	7.1%▼	7.8%
Diluted EPS	2.90▲	2.88

Balance Sheet Highlights

Metric	Q2 2026	Q4 2025
Total Assets	$54.9B	$53.5B
Total Debt	$42.5B▼	$44.7B
Working Capital	$1.9B▲	$769M
Years to Pay Debt	26.13	27.66

Cash Flow Highlights

Metric	Q2 2026	Q4 2025	Q4 2024
Free Cash Flow	$2.8B▲	$90M•	N/A
Owner Earnings	$2.8B	$2.7B	N/A
CapEx % of Net Income	32.0%	36.9%	N/A

Income Statement

	2026	2025
Tax Rate For Calcs	0	0
Normalized EBITDA	3,207,000	3,057,000
Net Income From Continuing Operation Net Minority Interest	1,628,000	1,616,000
Reconciled Depreciation	644,000	535,000
Reconciled Cost Of Revenue	15,457,000	13,637,000
EBITDA	3,207,000	3,057,000
EBIT	2,563,000	2,522,000
Net Interest Income	-399,000	-352,000
Interest Expense	408,000	393,000
Interest Income	9,000	41,000
Normalized Income	1,628,000	1,616,000
Net Income From Continuing And Discontinued Operation	1,628,000	1,616,000
Total Expenses	20,524,000	18,332,000
Total Operating Income As Reported	2,554,000	2,481,000
Diluted Average Shares	560,000	560,000
Basic Average Shares	559,000	559,000
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	1,623,000	1,612,000
Net Income Common Stockholders	1,623,000	1,612,000
Otherunder Preferred Stock Dividend	5,000	4,000
Net Income	1,628,000	1,616,000
Net Income Including Noncontrolling Interests	1,628,000	1,616,000
Net Income Continuous Operations	1,628,000	1,616,000
Tax Provision	527,000	513,000
Pretax Income	2,155,000	2,129,000
Net Non Operating Interest Income Expense	-399,000	-352,000
Interest Expense Non Operating	408,000	393,000
Interest Income Non Operating	9,000	41,000
Operating Income	2,554,000	2,481,000
Operating Expense	4,989,000	4,635,000
Depreciation Amortization Depletion Income Statement	566,000	475,000
Depreciation And Amortization In Income Statement	566,000	475,000
Selling General And Administration	4,423,000	4,160,000
Gross Profit	7,543,000	7,116,000
Cost Of Revenue	15,535,000	13,697,000
Total Revenue	23,078,000	20,813,000
Operating Revenue	22,761,000	20,429,000

Balance Sheet

	2026	2025
Ordinary Shares Number	561,000	560,825
Share Issued	561,000	560,825
Net Debt	37,155,000	39,314,000
Total Debt	42,540,000	44,696,000
Tangible Book Value	-19,022,000	-20,358,000
Invested Capital	28,671,000	29,553,000
Working Capital	1,888,000	769,000
Net Tangible Assets	-19,022,000	-20,358,000
Capital Lease Obligations	4,599,000	4,761,000
Common Stock Equity	-9,270,000	-10,382,000
Total Capitalization	27,481,000	27,116,000
Total Equity Gross Minority Interest	-9,270,000	-10,382,000
Stockholders Equity	-9,270,000	-10,382,000
Gains Losses Not Affecting Retained Earnings	266,000	275,000
Other Equity Adjustments	266,000	275,000
Retained Earnings	-9,884,000	-11,165,000
Additional Paid In Capital	68,000	228,000
Capital Stock	280,000	280,000
Common Stock	280,000	280,000
Total Liabilities Net Minority Interest	64,211,000	63,835,000
Total Non Current Liabilities Net Minority Interest	43,937,000	44,384,000
Other Non Current Liabilities	762,000	735,000
Non Current Deferred Liabilities	2,487,000	2,081,000
Non Current Deferred Revenue	1,248,000	1,273,000
Non Current Deferred Taxes Liabilities	1,239,000	808,000
Long Term Debt And Capital Lease Obligation	40,688,000	41,568,000
Long Term Capital Lease Obligation	3,937,000	4,070,000
Long Term Debt	36,751,000	37,498,000
Current Liabilities	20,274,000	19,451,000
Other Current Liabilities	3,846,000	3,527,000
Current Deferred Liabilities	1,629,000	1,537,000
Current Deferred Revenue	1,629,000	1,537,000
Current Debt And Capital Lease Obligation	1,852,000	3,128,000
Current Capital Lease Obligation	662,000	691,000
Current Debt	1,190,000	2,437,000
Other Current Borrowings	1,190,000	2,437,000
Pensionand Other Post Retirement Benefit Plans Current	972,000	1,023,000
Current Provisions
Payables And Accrued Expenses	11,975,000	10,236,000
Current Accrued Expenses
Interest Payable
Payables	11,975,000	10,236,000
Dividends Payable
Total Tax Payable
Income Tax Payable
Accounts Payable	11,975,000	10,236,000
Total Assets	54,941,000	53,453,000
Total Non Current Assets	32,779,000	33,233,000
Other Non Current Assets	591,000	603,000
Non Current Deferred Assets	0	0
Non Current Deferred Taxes Assets	0	0
Goodwill And Other Intangible Assets	9,752,000	9,976,000
Other Intangible Assets	5,807,000	5,994,000
Goodwill	3,945,000	3,982,000
Net PPE	22,436,000	22,654,000
Accumulated Depreciation
Gross PPE	22,436,000	22,654,000
Construction In Progress
Other Properties	22,436,000	22,654,000
Buildings And Improvements
Land And Improvements
Current Assets	22,162,000	20,220,000
Other Current Assets	1,320,000	788,000
Restricted Cash	458,000	412,000
Inventory	18,447,000	17,183,000
Finished Goods	18,447,000	17,183,000
Receivables	1,151,000	1,216,000
Accounts Receivable	1,151,000	1,216,000
Cash Cash Equivalents And Short Term Investments	786,000	621,000
Cash And Cash Equivalents	786,000	621,000

Cash Flow

	2026	2025	2024
Free Cash Flow	2,829,000	90,000
Repurchase Of Capital Stock	-363,000	-98,000
Repayment Of Debt	-2,376,000	-1,772,000
Capital Expenditure	-521,000	-597,000
Interest Paid Supplemental Data	751,000	650,000
Income Tax Paid Supplemental Data	47,000	1,493,000
End Cash Position	786,000	621,000
Beginning Cash Position	982,000	4,860,000
Changes In Cash	-196,000	-4,239,000
Financing Cash Flow	-3,045,000	4,418,000
Cash Flow From Continuing Financing Activities	-3,045,000	4,418,000
Net Other Financing Charges	-12,000	-25,000
Proceeds From Stock Option Exercised	2,000	12,000
Cash Dividends Paid	-674,000	-673,000
Common Stock Dividend Paid	-674,000	-673,000
Net Common Stock Issuance	-363,000	-98,000
Common Stock Payments	-363,000	-98,000
Net Issuance Payments Of Debt	-1,998,000	5,202,000
Net Short Term Debt Issuance	378,000		0
Net Long Term Debt Issuance	-2,376,000	5,202,000
Long Term Debt Payments	-2,376,000	-1,772,000
Investing Cash Flow	-501,000	-9,344,000
Cash Flow From Continuing Investing Activities	-501,000	-9,344,000
Net Other Investing Changes	32,000	-4,000
Net Investment Purchase And Sale	-18,000	-20,000
Sale Of Investment	319,000	425,000
Purchase Of Investment	-337,000	-445,000
Net Business Purchase And Sale		-8,741,000	54,000
Sale Of Business		0	54,000
Purchase Of Business		-8,741,000	0
Net PPE Purchase And Sale	6,000	18,000
Sale Of PPE	6,000	18,000
Capital Expenditure Reported	-521,000	-597,000
Operating Cash Flow	3,350,000	687,000
Cash Flow From Continuing Operating Activities	3,350,000	687,000
Change In Working Capital	637,000	-1,631,000
Change In Other Current Liabilities	-242,000	-1,704,000
Change In Other Current Assets	-125,000	28,000
Change In Payables And Accrued Expense	2,212,000	402,000
Change In Payable	2,212,000	402,000
Change In Account Payable	2,212,000	402,000
Change In Inventory	-1,145,000	-357,000
Change In Receivables	-63,000
Changes In Account Receivables	-63,000
Other Non Cash Items	169,000	138,000
Stock Based Compensation	65,000	60,000
Deferred Tax	203,000	-46,000
Deferred Income Tax	203,000	-46,000
Depreciation Amortization Depletion	644,000	535,000
Depreciation And Amortization	644,000	535,000
Operating Gains Losses	4,000	15,000
Gain Loss On Sale Of PPE	4,000	15,000	15,000
Gain Loss On Sale Of Business		0	-54,000
Net Income From Continuing Operations	1,628,000	1,616,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $20.9B ▲ $23.1B +10.3%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 33.4% ▲ 32.7% -0.7pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 12.2% ▲ 11.1% -1.1pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 7.8% ▼ 7.1% -0.8pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$23.1B/qtr (≈$92.3B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

1.09x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$2.8B

vs Positive

Operating Cash Flow

$3.4B

Latest quarter · Buffett's cash reality check

ROIC

5.8%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

⚠ Negative Net Assets

Net Assets: -$9.3B

⚠ Negative Net Assets — total liabilities exceed total assets on paper. This is common in companies that aggressively return capital via buybacks and dividends (Apple, McDonald's, Domino's). It does not indicate insolvency if the business generates strong, consistent free cash flow. Focus on FCF and earnings power rather than balance sheet book value for these companies.

Peers & Industry

No auto-detected peers for Home Improvement Retail. You can manually compare LOW against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.11%

Low — management has little skin in the game

Return on Assets (ROA)

3.0%

Fair — average asset utilization

Share Buybacks (Latest Year)

$211M

Management is returning capital to shareholders via buybacks

Debt Trend YoY

-4.8% YoY

Debt is declining — management is deleveraging

Leadership Team

Marvin Ellison

President, CEO & Chairman

Age 60

Pay: $4,838,527

0.297% of net income

Brandon Sink CPA

Executive VP & CFO

Age 49

Pay: $1,814,175

0.111% of net income

William Boltz

Executive Vice President of Merchandising

Age 62

Pay: $1,935,156

0.119% of net income

Joseph Michael McFarland III

Executive Vice President of Stores

Age 55

Pay: $1,849,858

0.114% of net income

Shelly Hubbard

Vice President of Investor Relations

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	7.08%	39,693,036
JPMORGAN CHASE & CO	6.62%	37,109,610
Vanguard Capital Management LLC	6.50%	36,455,463
FMR, LLC	5.68%	31,855,651
State Street Corporation	4.36%	24,448,558
Vanguard Portfolio Management LLC	2.54%	14,257,036
Geode Capital Management, LLC	2.52%	14,112,087
Morgan Stanley	1.98%	11,096,154

Risk Analysis

Beta (Market Risk)

0.86

Low volatility — more stable than the market

Short Interest

2.0% of float

Low short interest — market is not heavily bearish

Current Ratio

1.09x

Adequate liquidity

52-Week Price Range

Low: $203.40 Current: $222.20 High: $293.06

Currently at 21% of 52-week range

Lowe's Companies, Inc.

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis