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Lowe's Companies Inc
🇺🇸 LOW · NYSE/NASDAQ · US5486611073
Consumer
Scores
Key Metrics
Powered by EODHDP/E (TTM)
18.4
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.
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.
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
13.0x
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: 2.20%
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): 2.20%
Payout Ratio (Fwd)
39.1% TTM
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)
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 |
| Forecast* | Quarterly | — | 22 Oct 2026 | — | USD | 1.2 |
| 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 operates an exceptionally high-quality home improvement retail duopoly with pristine free cash flow covering a rapidly growing dividend. While the fundamental business remains robust and its massive scale provides a strong regulatory moat, the current valuation and low starting yield make it a stock to monitor for better entry points. Existing holders should maintain.
Sector Context
Home improvement retail is an essential, highly consolidated duopoly. Massive physical footprints and complex supply chain requirements (including compliance with chemical bans and contractor licensing) create significant barriers to entry, favoring scaled incumbents like Lowe's during cyclical housing downturns.
Temporary Opportunity Identified
Cyclical housing headwinds, higher interest rates, and softer consumer discretionary spending (as evidenced by declining US retail sales) are pressuring short-term earnings and DIY demand.
📊 Strategy Analysis
- • Pristine dividend safety with Free Cash Flow covering the dividend 2.86x and a low cash flow payout ratio of 27.10%
- • Exceptional dividend growth track record, boasting a 5-year CAGR of 15.9% and a recent hike to $1.25/quarter
- • Massive scale provides a structural moat, allowing the company to absorb complex compliance costs (EPA RRP, PFAS bans) and tariffs that cripple smaller independent competitors
⚠ What to Watch
- • Current valuation at a P/E of 18.41 sits above the preferred 8-15x range, offering a limited margin of safety
- • Trailing dividend yield of 2.20% provides relatively low immediate income for a DGI portfolio
- • Net Debt/EBITDA of 3.40x remains elevated compared to historical levels (1.9x in 2019)
📊 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: 2026-08-15
Disclaimer: This information is for educational purposes only. Not financial advice.