Lowe’s Companies Stock Intrinsic Value – LOWE’S COMPANIES Reports Third Quarter FY2024 Earnings Results

🌥️Earnings Overview

On October 31 2023, LOWE’S COMPANIES ($NYSE:LOW) reported their earnings for the third quarter of FY2024. Total revenue for the period came in at USD 20471.0 million, which was a decrease of 12.8% year-over-year. However, despite this drop in sales, the company posted a net income of USD 1773.0 million, an increase from the 154.0 million reported in Q3 of FY2023.

Share Price

At the start of the trading day, LOWE’S COMPANIES stock opened at $197.5 but closed at $198.1, a decrease of 3.1% from its previous closing price of $204.4. This marks a decline in the company’s stock performance since their last report. Analysts are now speculating what could be behind this drop and what might be expected for the future. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Lowe’s Companies. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Lowe’s Companies. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Lowe’s Companies. More…

Key Ratios Snapshot

Some of the financial key ratios for Lowe’s Companies are shown below. More…

Analysis – Lowe’s Companies Stock Intrinsic Value

At GoodWhale, we conducted a fundamental analysis of LOWE’S COMPANIES and calculate the intrinsic value of the company’s share to be around $267.6. This value has been derived using our proprietary Valuation Line tool. Currently, LOWE’S COMPANIES stock is traded at a price of $198.1, which means that it is undervalued by 26.0%. This presents an opportunity for investors to buy LOWE’S COMPANIES at a discount and benefit from potential future gains. More…

Peers

Headquartered in Mooresville, North Carolina, the company employs over 290,000 people. Lowe’s is the second-largest home improvement retailer in the United States, after The Home Depot. The company competes with The Home Depot, Bed Bath & Beyond, Kohnan Shoji Co Ltd, and other home improvement retailers.

– The Home Depot Inc ($NYSE:HD)

The Home Depot Inc is a home improvement retailer that operates in the United States, Canada, and Mexico. It was founded in 1978 and is headquartered in Atlanta, Georgia. The company has a market capitalization of $282.03 billion as of 2022 and a return on equity of -2020.81%. Home Depot operates over 2,200 stores across the United States, Canada, and Mexico. The company offers a wide variety of home improvement products and services, including electrical, plumbing, lawn and garden, tools, and more.

– Bed Bath & Beyond Inc ($NASDAQ:BBBY)

Bath & Beyond Inc is a home goods retailer that operates in the United States and Canada. As of 2022, the company had a market capitalization of 401.26 million and a return on equity of 146.77%. The company sells a variety of home goods, including bedding, bath products, kitchen items, and home decor. It also operates a website and mobile app.

– Kohnan Shoji Co Ltd ($TSE:7516)

Kohnan Shoji Co Ltd is a Japanese company that manufactures and sells construction materials, tools, and hardware. It has a market cap of 94.2B as of 2022 and a return on equity of 9.73%. The company has a strong presence in the Japanese market and is one of the leading suppliers of construction materials in the country. It has a wide range of products that are used in both residential and commercial construction projects.

Summary

Investing in LOWE’S COMPANIES may be a risky endeavor, as the company reported a 12.8% decline in total revenue in the third quarter of FY2024 compared to the same period in the previous year. Despite this, net income did increase from 154.0 million to 1773.0 million in the same quarter, indicating that the company is able to remain profitable despite the decline in sales. Investors should carefully weigh the risks and potential rewards of investing in the company, as further market fluctuations could affect its stock price.