LOW Analysis — TradeApes

LOWES COMPANIES INC (LOW)

$242.62 close · Apr 09, 2026

↓ Mild Discount (61/100)

⚠️

Multiple stretched z = +1.85

EV/EBITDA (14.1×) is 1.85 std deviations above its 2-year average

Apr 09

Health Score

Out of 100

Mixed

Pillar Scores

Financial Strength 45

Operating Trend 60

Valuation 55

Capital Allocation 55

Risk 70

Positives

↑ Free cash flow positive — business generates real spendable cash +2.5

↑ High ROIC — above 20%, excellent return on invested capital +2.5

↑ Decent FCF yield — 4–7%, reasonable cash return on price paid +1.3

Concerns

↓ High leverage — net debt/EBITDA between 3× and 5× -3.8

↓ Altman Z-Score in grey zone — uncertain financial stability -1.0

Signal contribution: +7.1 from strengths -4.8 from concerns

Health Score Trend 8 snapshots

Financials

TTM Financials

Revenue ?Total sales generated from the company's primary business activities over the trailing twelve months.	86.29B
Gross Profit ?Revenue minus cost of goods sold. What remains before operating expenses — reflects pricing power and production efficiency.	28.89B
Operating Income ?Profit from core business operations after all operating expenses (EBIT). Excludes interest and taxes.	10.15B
Net Income ?Bottom-line profit after all expenses, interest, and taxes are deducted from revenue.	6.65B
Free Cash Flow ?Operating cash flow minus capital expenditures. The actual cash the business generates after maintaining its assets — the truest measure of profitability.	7.65B
EBITDA ?Earnings before interest, taxes, depreciation & amortization. A proxy for operating cash earnings that strips out accounting and financing differences.	12.35B
Total Debt ?Combined short-term and long-term interest-bearing debt obligations. Compare against cash and earnings to gauge leverage risk.	39.82B
Cash & Equivalents ?Highly liquid assets on hand — cash, money market funds, and short-term securities. The company's immediate financial cushion.	982.0M

Valuation

Market Cap	135.87B
Enterprise Value	174.70B
EV / Revenue	2.0x
EV / EBITDA	14.1x
P/E (TTM)	20.4x
Forward P/E (extrapolated)	11.3x
PEG	—
P/FCF	17.8x
FCF Yield	5.6%

DCF Fair Value Range (base CAGR: 18.9%)

Bear

$301.56

Base

$558.22

Bull

$968.38

Bear $302 Current $242.62 (below range) Bull $968

Market is pricing in 6.4% FCF growth annually — base model assumes 18.9%

Key Metrics

Gross Margin ?Gross profit as a % of revenue. Measures how efficiently the company produces its goods or services — higher is better.	33.5%
EBITDA Margin ?EBITDA as a % of revenue. Shows core operating profitability before accounting adjustments — useful for comparing across industries.	14.3%
Net Margin ?Net income as a % of revenue. The ultimate measure of overall profitability after every expense, interest payment, and tax is accounted for.	7.7%
FCF Margin ?Free cash flow as a % of revenue. Shows how much of each dollar of revenue converts into real, spendable cash.	8.9%
Revenue Growth (YoY) ?Year-over-year change in total revenue. Measures business momentum — sustained growth above 15% is typically considered strong.	3.1%
Net Income Growth (YoY) ?Year-over-year change in net income. Shows whether profits are growing faster or slower than revenue — a key indicator of improving or deteriorating quality.	-4.4%
Piotroski F-Score ?Score from 0–9 measuring financial strength across profitability, leverage, and efficiency signals. 8–9 = strong, 0–2 = distressed.	5 / 9
Altman Z-Score ?Bankruptcy risk model. Above 2.99 = safe zone, 1.81–2.99 = grey zone, below 1.81 = distress signal. Most useful for manufacturing companies.	1.90

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Quarterly Financials

Metric	Q4 '25	Q3 '25	Q2 '25	Q1 '25	Q4 '25	Q3 '25	Q2 '25	Q1 '25	Q4 '25	Q3 '24	Q2 '24	Q1 '24
Revenue ?Total quarterly sales from primary business operations.	20.58B	20.81B	23.96B	20.93B	18.55B	20.17B	23.59B	21.36B	18.60B	20.47B	24.96B	22.35B
Gross Profit ?Quarterly revenue minus cost of goods sold.	6.68B	7.12B	8.10B	6.99B	6.10B	6.80B	7.90B	7.09B	6.03B	6.89B	8.40B	7.53B
Operating Income ?Quarterly profit from core operations before interest and taxes (EBIT).	1.71B	2.48B	3.47B	2.49B	1.83B	2.54B	3.45B	2.65B	1.69B	2.70B	3.89B	3.29B
Net Income ?Quarterly bottom-line profit after all expenses and taxes.	999.0M	1.62B	2.40B	1.64B	1.12B	1.70B	2.38B	1.76B	1.02B	1.77B	2.67B	2.26B
FCF ?Quarterly free cash flow: operating cash minus capital expenditures.	4.79B	—	—	2.86B	3.82B	—	—	3.88B	4.45B	—	—	1.73B

Revenue & Free Cash Flow

Market Cap vs. DCF Fair Value Band

Shaded region = bear-to-bull DCF range. Line = actual market cap.

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Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Scores and valuations are derived from SEC filings and publicly available data. Always do your own research before making investment decisions.