Lowe’s Companies Intrinsic Value – Lowe’s Companies Q4 Earnings Surpass Expectations, But Revenue and Comparable Sales Fall Short.
March 2, 2023
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Lowe’s Companies Intrinsic Value – LOWE’S ($NYSE:LOW): Lowe’s Companies reported better than expected Q4 profits for the fourth quarter, with a $2.28 earnings per share that rose $0.30 from what was anticipated. Unfortunately, revenue and comparable sales figures failed to meet expectations, leading to a drop in Lowe’s Companies stock during premarket trading on Wednesday. The disappointing figures highlight Lowe’s Companies need to maintain and improve upon their existing business strategies in order to remain competitive in the current market. Despite the lower than expected results, the company is confident in their ability to identify areas for improvement and build upon those initiatives for greater success.
Stock Price
Lowe’s Companies has had a largely negative media sentiment since its Q4 earnings were released. On Wednesday, the company’s stock opened at $205.4 and closed at $194.3, a drop of 5.6% from the previous closing price of 205.8. Although the company exceeded their earnings expectations, revenue and comparable sales fell short. This negative news caused the stock to suffer and investors to doubt the success of Lowe’s Companies. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Lowe’s Companies. More…
| Total Revenues | Net Income | Net Margin |
| 95.95k | 6.68k | 7.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lowe’s Companies. More…
| Operations | Investing | Financing |
| 9.07k | -1.4k | -10.56k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Lowe’s Companies. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 46.97k | 59.84k | -21.06 |
Key Ratios Snapshot
Some of the financial key ratios for Lowe’s Companies are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.2% | 29.1% | 10.7% |
| FCF Margin | ROE | ROA |
| 7.7% | -60.5% | 13.7% |
Analysis – Lowe’s Companies Intrinsic Value
GoodWhale’s analysis of LOWE’S COMPANIES reveals that the company is currently trading 11.2% under its intrinsic value. Using our proprietary Valuation Line, we determined the intrinsic value of each share to be around $218.8. This means that the current share price of $194.3 represents a fair price that is undervalued by a margin of 11.2%. With this key insight, investors can make an informed decision as to whether or not they should invest in LOWE’S COMPANIES. More…
Peers
Headquartered in Mooresville, North Carolina, the company employs over 290,000 people. Lowe’s is the second-largest home improvement retailer in the United States, after The Home Depot. The company competes with The Home Depot, Bed Bath & Beyond, Kohnan Shoji Co Ltd, and other home improvement retailers.
– The Home Depot Inc ($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
The fourth quarter earnings of Lowe’s Companies surpassed analysts’ expectations, but the company’s revenue and comparable sales fell short compared to previous estimates. Investors reacted negatively to the news, and as a result, the stock price dropped on the same day. It is important for investors to analyze the financials for Lowe’s Companies and assess the risks involved before making any investment decisions.
Factors such as financial performance, competitive environment, and market trends should all be taken into consideration when looking at Lowe’s Companies. Despite the stock price decline, investors should analyze the company’s fundamentals, such as its earnings and revenue, to gain insight into whether or not it is a good investment opportunity.
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