| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 140.40 | -47 |
| Intrinsic value (DCF) | 86.82 | -67 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 47.40 | -82 |
Lowe's Companies, Inc. (LSE: 0JVQ.L) is a leading home improvement retailer operating in the U.S. and internationally. Founded in 1921 and headquartered in Mooresville, North Carolina, Lowe's serves homeowners, renters, and professional customers with a comprehensive range of products, including appliances, lumber, tools, paint, flooring, and outdoor living essentials. The company operates nearly 2,000 stores and maintains a strong digital presence through Lowes.com and mobile apps, offering installation services via independent contractors. Lowe's combines national brands with private-label products, catering to DIY enthusiasts and contractors alike. As a key player in the consumer cyclical sector, Lowe's benefits from steady demand in home renovation and maintenance, supported by a resilient U.S. housing market. With a market cap exceeding $124 billion, Lowe's is a dominant force in specialty retail, competing closely with Home Depot while expanding its professional customer base.
Lowe's presents a stable investment opportunity in the home improvement sector, supported by consistent revenue ($83.7B in FY2025) and strong net income ($6.96B). The company's diluted EPS of $12.23 and robust operating cash flow ($9.63B) underscore its profitability, while a $4.60 dividend per share enhances shareholder returns. However, its high total debt ($39.68B) and moderate beta (0.995) suggest sensitivity to economic cycles. Lowe's faces competitive pressure from Home Depot and must continue investing in digital transformation and professional services to maintain growth. The stock is suitable for long-term investors seeking exposure to the resilient home improvement market.
Lowe's holds a strong position in the home improvement retail sector, leveraging its vast store network and omnichannel strategy. Its competitive advantage lies in its focus on professional customers (Pro segment), which drives higher-margin sales, and its private-label brands that differentiate its product assortment. However, Lowe's trails Home Depot in market share and operational efficiency, with lower revenue per square foot. The company has improved supply chain and inventory management but faces challenges in matching Home Depot's digital capabilities. Internationally, Lowe's presence is limited compared to domestic rivals, though its acquisition of RONA in Canada provides regional strength. The competitive landscape demands continued investment in technology and customer experience to fend off threats from e-commerce players like Amazon and niche competitors such as Tractor Supply. Lowe's scale and brand recognition position it well, but execution risks remain in balancing growth with profitability.