Go To Lowe's To Improve Your House But Not Your Portfolio... Yet
Peter Lynch told us to "buy what you know". Now I've never worked in a Lowe's before, or retail of any kind for that matter, but I much prefer Lowe's Companies, Inc. (LOW) to The Home Depot, Inc. (HD). At the Lowe's near my house the service is better than their counterpart across the street and the products I need have always been in stock. So I wanted to take a more in depth look at this giant in the home improvement business to see if there's value in the shares. Shares of LOW closed trading on Friday, October 16th at $72.78 giving investors a current yield of 1.54%.
The following tables/graphs are taken from my personal stock analysis spreadsheet. Data for the stock analysis was sourced from Lowe's Companies Inc.'s investor relations page, Morningstar, and Yahoo Finance.
Historic Growth Rates:
Owners of Lowe's have earned excellent returns over the last decade. According to longrundata.com, shares of LOW have earned investors a total return of 176.8% or 10.7% annualized over the last decade. Those numbers are market returns at specific snapshots in time and aren't necessarily indicative of the business results over the same time period. Looking at the historic growth rates for per share dividends, earnings, revenue, and free cash flow gives a better idea of the true operational results that Lowe's Companies has delivered.
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