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Lowe's Companies Inc
🇺🇸 LOW · NYSE/NASDAQ
Consumer
Price at analysis: USD 196.55 Current price: USD 192.01 * updated every night
Scores
Key Metrics
Powered by EODHDP/E (TTM)
16.6
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: 196.55 ÷ 11.86 = 16.6
TTM period through: 2026-07-31
Forward P/E (estimated): 15.6
Based on analyst estimates
Reference: Provider P/E (Trailing): 16.5
Net Debt/EBITDA (TTM)
3.0x
Latest quarter: 9.2x
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: 2026-07-31
Latest quarter (2026-07-31): 9.2x
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
11.5x
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)
2.18%
TTM: 2.58%
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): 2.18%
Trailing Yield (TTM, last 12 months): 2.58%
Payout Ratio (Fwd)
42.1%
TTM: 40.5%
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): 42.1%
Payout (TTM): 40.5%
Cash Flow Payout (TTM): 29.1%
FCF Coverage (TTM): 2.60x
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 Jul 2027 | — | USD | 1.25 |
| Forecast* | Quarterly | — | 22 Apr 2027 | — | USD | 1.2 |
| Forecast* | Quarterly | — | 21 Jan 2027 | — | USD | 1.2 |
| Declared | Quarterly | 28 Aug 2026 | 21 Oct 2026 | 04 Nov 2026 | USD | 1.25 |
| Paid | 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 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
Lowe's leverages its immense scale to convert heavy regulatory and supply chain costs into a structural moat, generating pristine free cash flow that comfortably covers its growing 2.58% yield. The current cyclical housing downturn has compressed the valuation to a reasonable 16.57x P/E, presenting an attractive accumulation opportunity for long-term dividend growth investors. Notably, past administrative overhangs (including major EPA and MDL labor lawsuits) have recently been settled, removing key structural risks from the thesis.
Sector Context
Lowe's operates in the home improvement retail sector, commanding a formidable duopoly alongside Home Depot. While consumer cyclicality impacts big-ticket sales, the non-discretionary repair/maintenance segment and robust Pro-contractor demand provide recession-resilient cash flows highly suitable for DGI strategies.
Temporary Opportunity Identified
Macroeconomic pressures, elevated interest rates, and a frozen housing market have caused a temporary pause in big-ticket discretionary home improvement spending.
📊 Strategy Analysis
- • Massive scale-driven duopoly moat that effortlessly absorbs rising regulatory and supply chain costs, driving market share away from uncapitalized competitors.
- • Pristine free cash flow covering the dividend 2.60x (with a safe 39.2% TTM payout ratio), supporting a robust 15.9% 5-year dividend CAGR.
- • Total shareholder yield of 3.06% fueled by aggressive, consistent cash return policies in a highly cash-generative business model.
⚠ What to Watch
- • Net Debt to EBITDA currently sits at 3.01x, hovering slightly above the preferred conservative 3.0x threshold.
- • Cyclical vulnerability to delayed housing turnover and big-ticket project pauses, evidenced by a -2.2% 5-year revenue CAGR.
- • Ongoing exposure to structural supply chain and import tariff vulnerabilities, which could periodically pressure gross margins.
📊 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: 2026-10-17
Disclaimer: This information is for educational purposes only. Not financial advice.