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Is this Large Market Cap Stock target price reasonable for Lowe’s Companies, Inc. (NYSE:LOW)?

The company in question is, Lowe’s Companies, Inc. (NYSE:LOW) currently with a stock price of 71.31 (0.51% today). The market cap for Lowe’s Companies, Inc. is 62688.62, and is in the sector Services, and Home Improvement Stores industry. The target price for Lowe’s Companies, Inc. is 87.65. Currently Lowe’s Companies, Inc. is trading with a P/E of 22.84, and a forward P/E of 15.12. Average volume for Lowe’s Companies, Inc. is 4865.39 and so far today it is 5210100.

Performance in the last year for Lowe’s Companies, Inc. has been 6.24%. For EPS growth, Lowe’s Companies, Inc. has seen a growth of 0.70%, and is looking to grow in the next year to 17.26%. More long term stats show that EPS growth has been 13.90% over the last five years and could be 16.37% for the next five years. Lowe’s Companies, Inc. has seen sales growth quarter over quarter at 5.30%, with EPS growth quarter over quarter at 9.70%. The 20-day simple moving average is -9.47%, with the 200-day simple moving average coming to -5.08%.

Since the IPO date for Lowe’s Companies, Inc. on the 7/1/1985, Lowe’s Companies, Inc. has seen performance year to date to be -5.09%. With Lowe’s Companies, Inc. trading at 71.31, the dividend yield is 1.96%, and the EPS is 3.12.

So could Lowe’s Companies, Inc., be undervalued? Well as said before P/E is 22.84. The PEG is 1.4, P/S is 1.03 and the P/B is at 9.11. The P/cash is 29.91, with P/free cash flow at 20.17.

Lowe’s Companies, Inc. ability to deal with debt shows that the current ratio is 1, and the quick ratio is 0.2. This is with long term debt/equity at 2.11, and total debt/equity at 2.29.

In terms of margins, Lowe’s Companies, Inc. has a gross margin of 34.70%, an operating margin of 8.80% and a profit margin of 4.60%.Payout ratio for Lowe’s Companies, Inc. is 38.10%. Return on assets come to 8.00% with return on investment coming to 15.30%.

Insider ownership for Lowe’s Companies, Inc., is at 0.10% and institutional ownership comes to 77.30%. Outstanding shares are at 879.1. While shares float is 873.36. The float short is currently 1.08%, and short ratio is 1.94.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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