| 2018 | 2019 (projected) | Lowes Companies Consolidated Income | 773,714,250 | 1,647,172,618 | Lowes Companies Direct Expenses | 48,401,000,000 | 41,033,062,201 |
Is Lowes Companies price slide deceitful?
 | By Vlad Skutelnik | Macroaxis Story |
This review is geared to all Lowes Companies directors as well as to investors considering exiting their position in the venture. I will recap why continuing Lowes Companies price moves may cause a boost in August. This firm Piotroski F Score is 6 - Healthy. Considering 30-days investment horizon, Lowes Companies is expected to under-perform the market. In addition to that, the company is 3.52 times more volatile than its market benchmark. It trades about -0.07 of its total potential returns per unit of risk. The market is currently generating roughly 0.16 per unit of volatility. Lowes Companies secures last-minute Real Value of $103.1 per share. The latest price of the firm is $104.93. At this time the firm appears to be fairly valued. This module forecasts value of Lowes Companies from analyzing the firm fundamentals such as Current Valuation of 102.33B, Profit Margin of 3.31% and Return On Equity of 52.82% as well as examining its technical indicators and Probability Of Bankruptcy. In general, we recommend to purchase undervalued stocks and to get rid of overvalued stocks since at some point entities prices and their ongoing real values will merge together.
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Reviewed by Rifka Kats
LOWES COMPANIES has roughly 3.16B in cash with 3.19B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 4.04. Lowes Companies dividends can provide a clue to current valuation of the stock. The firm one year expected dividend income is about $0.87 per share. The company has Net Profit Margin of 3.31 % which may imply that it executes well on its competitive polices and has a good control over its expenditures and variable costs. This is considered to be average in the sector. In the same way, it shows Net Operating Margin of 10.37 % which entails that for every 100 dollars of revenue it generated 0.1 of operating income.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Lowes Companies. Your research has to be compared to or analyzed against Lowes Companies' peers to derive any actionable benefits. When done correctly, Lowes Companies' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Lowes Companies.
Investing in Lowes Companies, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Lowes Companies along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Lowes Companies' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Lowes Companies's Liquidity
Lowes Companies financial leverage refers to using borrowed capital as a funding source to finance Lowes Companies ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Lowes Companies financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Lowes Companies' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Lowes Companies' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Lowes Companies's total debt and its cash.
Lowes Companies Gross Profit
Lowes Companies Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Lowes Companies previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Lowes Companies Gross Profit growth over the last 10 years. Please check Lowes Companies' gross profit and other fundamental indicators for more details.
Lowes Companies Correlation with Peers
Investors in Lowes can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Lowes Companies. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Lowes Companies and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Lowes is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Lowes for more details
A Deeper look at Lowes
Lowes Companies price decrease over the last few months may encourage investors to take a closer look at the firm as it closed today at a share price of 104.88 on 5148347.000 in trading volume. The company management were not very successful in positioning the firm components to exploit market volatility in June. However, diversifying your holdings with Lowes Companies or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.3029. The current volatility is consistent with the ongoing market swings in June 2019 as well as with Lowes Companies unsystematic, company specific events. Lowes Companies is selling for 104.93. This is 2.37 percent up. Day high is 106.71. Lowes Companies Net Cash Flow from Operations is fairly stable at the moment. Also, Lowes Companies Net Cash Flow or Change in Cash and Cash Equivalents is fairly stable at the moment.
To conclude, we believe that at this point Lowes Companies is fairly valued with low probability of financial unrest within the next 2 years. Our present 'Buy/Hold/Sell' recommendation on the venture is Strong Hold.
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