Stock Analysis on Net
Stock Analysis on Net
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Lowe’s Cos. Inc. (NYSE:LOW)

Price to FCFE (P/FCFE)

Intermediate level

Free Cash Flow to Equity (FCFE)

Lowe’s Cos. Inc., FCFE calculation

US$ in millions

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12 months ended: Jan 29, 2021 Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017 Jan 29, 2016
Net earnings 5,835  4,281  2,314  3,447  3,093  2,546 
Net noncash charges 3,319  2,270  3,112  2,196  1,851  1,666 
Changes in operating assets and liabilities 1,895  (2,255) 767  (578) 673  572 
Net cash provided by operating activities 11,049  4,296  6,193  5,065  5,617  4,784 
Capital expenditures (1,791) (1,484) (1,174) (1,123) (1,167) (1,197)
Net change in commercial paper (941) 220  (415) 625  466  43 
Net proceeds from issuance of debt 7,929  3,972  —  2,968  3,267  1,718 
Repayment of debt (5,618) (1,113) (326) (2,849) (1,173) (552)
Free cash flow to equity (FCFE) 10,628  5,891  4,278  4,686  7,010  4,796 

Based on: 10-K (filing date: 2021-03-22), 10-K (filing date: 2020-03-23), 10-K (filing date: 2019-04-02), 10-K (filing date: 2018-04-02), 10-K (filing date: 2017-04-04), 10-K (filing date: 2016-03-29).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Lowe’s Cos. Inc.’s equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Lowe’s Cos. Inc.’s FCFE increased from 2019 to 2020 and from 2020 to 2021.

Price to FCFE Ratio, Current

Lowe’s Cos. Inc., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 717,256,852
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 10,628 
FCFE per share 14.82
Current share price (P) 198.51
Valuation Ratio
P/FCFE 13.40
Benchmarks
P/FCFE, Competitors1
Amazon.com Inc. 56.66
Costco Wholesale Corp. 23.49
Dollar General Corp. 12.67
Home Depot Inc. 16.80
Target Corp. 12.83
TJX Cos. Inc. 11.14
Walmart Inc. 19.38
P/FCFE, Sector
General Retailers 38.28
P/FCFE, Industry
Consumer Services 31.81

Based on: 10-K (filing date: 2021-03-22).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.


Price to FCFE Ratio, Historical

Lowe’s Cos. Inc., historical P/FCFE calculation, comparison to benchmarks

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Jan 29, 2021 Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017 Jan 29, 2016
No. shares of common stock outstanding1 717,256,852 754,948,648 795,922,717 825,766,281 857,332,918 897,438,629
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 10,628  5,891  4,278  4,686  7,010  4,796 
FCFE per share3 14.82 7.80 5.37 5.67 8.18 5.34
Share price1, 4 181.89 67.80 109.91 84.59 81.59 75.67
Valuation Ratio
P/FCFE5 12.28 8.69 20.45 14.91 9.98 14.16
Benchmarks
P/FCFE, Competitors6
Amazon.com Inc. 55.66 63.34 66.29 37.55 64.59
Costco Wholesale Corp. 23.41 36.68 35.16 11.86
Dollar General Corp. 11.51 23.85 24.07 25.91 14.81 21.55
Home Depot Inc. 15.41 14.99 16.61 15.10 17.06 13.76
Target Corp. 11.15 13.90 17.63 13.10 9.61 13.48
TJX Cos. Inc. 10.61 19.71 21.79 26.76 16.22 25.44
Walmart Inc. 18.26 23.39 9.30 18.53 12.30 16.16
P/FCFE, Sector
General Retailers 32.73 25.33 29.22 19.81 24.30
P/FCFE, Industry
Consumer Services 27.75 25.96 13.36 18.01 19.19

Based on: 10-K (filing date: 2021-03-22), 10-K (filing date: 2020-03-23), 10-K (filing date: 2019-04-02), 10-K (filing date: 2018-04-02), 10-K (filing date: 2017-04-04), 10-K (filing date: 2016-03-29).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2021 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 10,628,000,000 ÷ 717,256,852 = 14.82

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

5 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= 181.89 ÷ 14.82 = 12.28

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Lowe’s Cos. Inc.’s P/FCFE ratio decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.