Lowe’s Companies Inc


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SKU: LOW Category:


Home improvement giant, Lowe’s saw another set of strong results benefiting from the outstanding execution of the management’s Total Home strategy. The company witnessed a strong growth in the part of the business catering to home improvement professionals and installation experts. E-commerce was another major contributor to the top-line as sales from Lowes.com actually went up 7% in the quarter. The management’s focus on driving productivity resulted in a higher gross margin despite the inflationary pressures which is a very positive sign. While Lowe’s saw a drop in year-on-year comparables, on a two-year stacked basis, the U.S. comparable sales were up by a staggering 32%. Naturally, the market did not see the average year-on-year comps as a bad sign which is why Lowe’s stock price shot up on the announcement of the result. Another factor driving the market optimism is the fact that the management boosted its full-year sales forecast from $86 billion to $92 billion and even its operating margin forecast from 10.8% in 2020 to 12.2%. We are optimistic about the future of Lowe’s and give it a ‘Buy’ rating with a revised target price.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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