Stock Analysis on Net

Lowe’s Cos. Inc. (NYSE:LOW)

$24.99

Price to Operating Profit (P/OP)
since 2005

Microsoft Excel

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Calculation

Lowe’s Cos. Inc., P/OP, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01), 10-K (reporting date: 2018-02-02), 10-K (reporting date: 2017-02-03), 10-K (reporting date: 2016-01-29), 10-K (reporting date: 2015-01-30), 10-K (reporting date: 2014-01-31), 10-K (reporting date: 2013-02-01), 10-K (reporting date: 2012-02-03), 10-K (reporting date: 2011-01-28), 10-K (reporting date: 2010-01-29), 10-K (reporting date: 2009-01-30), 10-K (reporting date: 2008-02-01), 10-K (reporting date: 2007-02-02), 10-K (reporting date: 2006-02-03), 10-K (reporting date: 2005-01-28).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of Lowe’s Cos. Inc. Annual Report.

Share Price Trends
The share price exhibited notable fluctuations over the period analyzed. Beginning at $26.91 in 2005, the price experienced a decline reaching a low point of $18.25 in 2009. Following this trough, a general upward trend is observed with prices rising steadily and reaching $109.91 by 2019. A significant volatility is noticeable during the period 2020 to 2025: a sharp drop to $67.8 in 2020 is followed by a rapid recovery and peak of $227.6 in 2021, after which the price fluctuates downward to $232.89 in 2025. This indicates periods of market uncertainty, possibly influenced by external economic events, but overall, the share price shows strong growth over the long term.
Operating Profit per Share (OPPS) Trends
Data for operating profit per share are available from 2015 onwards. OPPS shows consistent growth from $5.04 in 2015 to $20.2 in 2023, marking a roughly fourfold increase over eight years. There is a minor dip in 2020 to $5.05, possibly correlating with economic disruptions during that year, but the metric quickly recovers and peaks at $20.2 in 2023, suggesting improved operational efficiency or profitability over time.
Price-to-Operating Profit Ratio (P/OP)
The P/OP ratio, measured from 2015 onwards, generally declines from 14.77 in 2015 to around 11-12 in 2024-2025, though with some interim volatility. A pronounced spike to 21.77 in 2019 corresponds to a relative overvaluation or reduced operating profit in that year. The ratio's decline after 2019 suggests the share price growth is becoming more closely aligned with operating profit increases, reflecting a potential normalization of market valuation metrics.
Overall Financial Insights
The company shows strong long-term share price growth despite intermediate fluctuations linked to economic cycles. Operating profitability on a per-share basis has improved markedly since 2015. The P/OP ratio's downward trend signals improving fundamentals supporting the stock price, aside from some short-term valuation anomalies. The dip in both share price and OPPS around 2020 likely reflects external impacts on the business environment, from which the company has demonstrated resilience with a robust recovery.

Comparison to Competitors