Stock In Focus – TAM Stock Screener – Lowe’s Companies Inc (LOW)

Johnny HopkinsStock ScreenerLeave a Comment

As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.

One of the cheapest stocks in our Stock Screeners is:

Lowe’s Companies Inc (LOW)

Lowe’s is the second-largest home improvement retailer in the world, operating 1,969 stores and servicing around 230 dealer-owned stores throughout the United States and Canada. The firm’s stores offer products and services for home decorating, maintenance, repair, and remodeling, with maintenance and repair accounting for two thirds of products sold. Lowe’s targets retail do-it-yourself (around 75% of sales) and do-it-for-me customers as well as commercial and professional business clients (around 25% of sales). We estimate Lowe’s captures a low-double-digit share of the domestic home improvement market, based on U.S. Census data and management’s estimates for market size.

A quick look at the share price history (below) over the past twelve months shows that the price is down 15%. Here’s why the company is undervalued.

LOW Chart

LOW data by YCharts


Market Cap: $131 Billion

Enterprise Value: $163 Billion

Operating Earnings

Operating Earnings: $12.17 Billion

Acquirer’s Multiple

Acquirer’s Multiple: 13.40

Free Cash Flow (TTM)

Free Cash Flow: $7.518 Billion

FCF/EV Yield

FCF/EV Yield: 5.72%

Shareholder Yield:

Shareholder Yield: 12.90%

Other Indicators

Piotroski F-Score: 6

Altman Z-Score: 4.009

ROA (5 Year Avge%): 26

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