Lowe’s Companies, Inc. [NYSE:LOW]: Analyst Rating and Earnings
Equities traders frequently stay up to date regarding what leading market analysts think about a possible stock buy. As it relates to Lowe’s Companies, Inc. [LOW], the latest mean analyst recommendation that’s publicly available is from the fiscal three-month period ending in January. On average, stock market experts give LOW an Outperform rating. Its stock price has been found in the range of 84.75 to 118.23. This is compared to its latest closing price of $108.59.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Lowe’s Companies, Inc. [LOW] is sitting at 1.94. This is compared to 1 month ago, when its average rating was 1.94.
For the quarter ending in Jan-19 Lowe’s Companies, Inc. [LOW] generated $15.65 billion in sales. That’s 0.58% lower than the average estimate of $15.74 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Stay on the lookout for the next quarterly financial report – the company is expected to release the following results on Wed 22 May (In 5 Days).
Fundamental Analysis of Lowe’s Companies, Inc. [LOW]
Now let’s turn to look at profitability: with a current Operating Margin for Lowe’s Companies, Inc. [LOW] sitting at +8.56 and its Gross Margin at +30.05, this company’s Net Margin is now 3.20%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 28.57, and its Return on Invested Capital has reached 14.80%. Its Return on Equity is 48.48, and its Return on Assets is 6.60. These metrics all suggest that Lowe’s Companies, Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Lowe’s Companies, Inc. [LOW] has generated a Total Debt to Total Equity ratio of 445.20. Similarly, its Total Debt to Total Capital is 81.66, while its Total Debt to Total Assets stands at 46.83. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 394.92, and its Long-Term Debt to Total Capital is 72.44. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 13.01 and its Total Debt to EBITDA Value is 2.10. The Enterprise Value to Sales for this firm is now 1.41, and its Total Debt to Enterprise Value stands at 0.17. Lowe’s Companies, Inc. [LOW] has a Price to Book Ratio of 21.35, a Price to Cash Flow Ratio of 12.73 and P/E Ratio of 39.10. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, Lowe’s Companies, Inc. [LOW] earns $237,697 for each employee under its payroll. Similarly, this company’s Total Asset Turnover is 2.04. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.11 and its Current Ratio is 0.98. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Lowe’s Companies, Inc. [LOW] has 799.00M shares outstanding, amounting to a total market cap of $86.76B. Its stock price has been found in the range of 84.75 to 118.23. At its current price, it has moved by -7.29% from its 52-week high, and it has moved 29.33% from its 52-week low.
This stock’s Beta value is currently 1.27, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 51.75. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Lowe’s Companies, Inc. [LOW] a Reliable Buy?
Lowe’s Companies, Inc. [LOW] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.