Lowe's Companies, Inc. (LOW)

FairStock Score: 65/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I see Lowe’s as a durable, scaled home-improvement retailer with a real convenience and assortment moat, but a cyclical one. The cash engine is respectable: trailing-twelve-month free cash flow was $7.0B, a 6.3% FCF yield at the 2026-10-26 close, and FairStock calculates ROCE of 12.52% and a 2.52% dividend yield. The Piotroski F-Score of 9/9 suggests improving fundamentals, while the Altman Z-Score of 1.57 calls for caution on balance-sheet risk. Growth is the problem. FairStock labels it a SLOW GROWER because profit rose only 2.7% a year over five years while revenue fell 0.8%. The filed record shows fiscal year 2025, ended 2026-01-30, revenue of $86.3B, net income of $6.7B, and diluted EPS of $11.85, down from $7.0B and $12.23 in fiscal year 2024, ended 2025-01-31. In fiscal Q2 2026, the quarter ended 2026-07-31, revenue was $26.0B versus $24.0B in fiscal Q2 2025, the quarter ended 2025-08-01, but net income was $2.4B in both periods and diluted EPS was $4.27 in both periods—revenue leverage without profit leverage. At the 2026-10-26 close, FairStock’s P/E is 16.76, EV/EBITDA is 11.71, and the PEG is 418.75. That is not an outrageous price for a scale retailer with strong cash flow, but it is not a Graham bargain either. I would want either clearer profit growth or a larger margin of safety before calling it compelling.

In plain English: Lowe's sells home-improvement products and building materials through stores in the U.S. and Canada. The business looks financially solid, with $7.0B of cash generated after expenses and investments over the last twelve months and a 2.52% dividend, but profit has been roughly flat recently. At $198.22 on 2026-10-26, the price looks fair to modestly cheap against its earnings and cash flow, not a clear bargain.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-07-31) · fiscal Q1 2026 10-Q (period ended 2026-05-01) · fiscal Q3 2025 10-Q (period ended 2025-10-31) · fiscal Q2 2025 10-Q (period ended 2025-08-01) · FY2025 10-K (period ended 2026-01-30) · FY2024 10-K (period ended 2025-01-31) · FY2023 10-K (period ended 2024-02-02)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer