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Lowe's Companies Inc
🇺🇸 LOW · NYSE/NASDAQ · US5486611073
Consumer
USD 224.71 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
18.9
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 224.71 ÷ 11.86 = 18.9
TTM period through: 2026-04-30
Forward P/E (estimated): 17.7
Based on analyst estimates
Reference: Provider P/E (Trailing): 19.2
Net Debt/EBITDA (TTM)
3.4x
Latest quarter: 12.9x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-04-30
Latest quarter (2026-04-30): 12.9x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
EV/EBITDA
13.1x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
2.23%
TTM: 2.16%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Forward Yield (estimated): 2.23%
Trailing Yield (TTM, last 12 months): 2.16%
Payout Ratio (Fwd)
42.2%
TTM: 40.1%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (Fwd): 42.2%
Payout (TTM): 40.1%
Cash Flow Payout (TTM): 27.1%
FCF Coverage (TTM): 2.86x
Growth Streak
8 yrs
Consec. increases
Div. Growth (5Y)
15.9%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 22 Apr 2027 | — | USD | 1.2 |
| Forecast* | Quarterly | — | 21 Jan 2027 | — | USD | 1.2 |
| Forecast* | Quarterly | — | 22 Oct 2026 | — | USD | 1.2 |
| Declared | Quarterly | 29 May 2026 | 22 Jul 2026 | 05 Aug 2026 | USD | 1.25 |
| Paid | Quarterly | 19 Mar 2026 | 22 Apr 2026 | 06 May 2026 | USD | 1.2 |
| Paid | Quarterly | 14 Nov 2025 | 21 Jan 2026 | 04 Feb 2026 | USD | 1.2 |
| Paid | Quarterly | 29 Aug 2025 | 22 Oct 2025 | 05 Nov 2025 | USD | 1.2 |
| Paid | Quarterly | 15 Jun 2025 | 23 Jul 2025 | 06 Aug 2025 | USD | 1.2 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
Lowe's operates an exceptionally high-quality home improvement retail business with a formidable duopoly moat and pristine free cash flow covering its recently raised dividend. While the company's fundamentals remain robust despite housing cycle headwinds, the current valuation near $225 (P/E ~19) offers limited upside and a yield below our target threshold. Existing shareholders should maintain positions given the strong dividend growth and coverage, but new investors may want to wait for a better entry point below $210.
Sector Context
Lowe's is a leading home improvement retailer that generates revenue through the sale of building materials, appliances, and hardware to both DIY consumers and professional contractors. In the context of dividend investing, the home improvement retail sector operates as a highly consolidated duopoly where massive scale and regulatory compliance act as profound structural barriers to entry, enabling highly resilient free cash flow generation.
Temporary Opportunity Identified
Cyclical housing market slowdown and 'higher-for-longer' interest rate environment temporarily suppressing major home improvement remodeling demand.
📊 Strategy Analysis
- • Strong duopoly position and massive scale provide a structural moat against smaller competitors, particularly in absorbing tariffs and navigating complex environmental compliance mandates.
- • Exceptional dividend sustainability with a 27.1% cash flow payout ratio (2.86x FCF coverage) and a recently declared 6.4% dividend increase.
- • Resilient profitability with consistent EBITDA margins around 13.75%, successfully pivoting to capture higher-margin professional contractor business.
⚠ What to Watch
- • Current valuation at a P/E of 18.95 exceeds the preferred 8-15x target range and trades above the calculated monopoly fair value bound of $213.46.
- • The trailing dividend yield of 2.16% falls short of the strategy's 3% minimum requirement for immediate income generation.
- • Net Debt/EBITDA sits at 3.40x, which exceeds the optimal <3.0x threshold and reflects elevated leverage levels.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-07-04
Disclaimer: This information is for educational purposes only. Not financial advice.