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Lowe's Companies, Inc.(LOW)

C

Financial data as of Jan 31, 2026Improving · Consumer Discretionary

FCF Margin8.9%Free Cash Flow / Revenue
Cash Conversion148.2%Operating CF / Net Income
Free Cash Flow$7.7B
Revenue$86.3B
Net Cash-$43.7BNet debt position
Debt / FCF5.8xElevated debt burden
Current Ratio1.08Adequate short-term liquidity
YoY FCF Growth+165.6%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseC
→
-0.5Elevated debt-to-FCF ratio (5.8x)
→
+1Strong YoY FCF growth (165.6% YoY)
→
-0.5Highly volatile FCF (consistency: 0.90)
→
FinalC

Analysis Summary

Strengths

  • Excellent cash conversion (148%)
  • Strong YoY FCF growth (+165.6%)

Concerns

  • Low FCF margin (8.9%)
  • Heavy debt position ($43.7B net debt, 5.8x FCF)
  • High debt-to-FCF ratio (5.8x)
  • Highly volatile quarterly FCF

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin8.9%
Net Margin7.7%
Operating CF Margin11.4%
CapEx Ratio2.6%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$43.7BNet debt position
Debt / FCF5.8xElevated debt burden
Current Ratio1.08Adequate liquidity
Debt / Equity0.00Low leverage

Quarterly FCF Trend

+165.6% YoYImproving (+165.6%)

Free cash flow per quarter

Sector Comparison — Consumer Discretionary

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameLowe's Companies, Inc.
SectorConsumer Discretionary
Free Cash Flow$7.7B
Revenue$86.3B
Net Income$6.7B
Operating Cash Flow$9.9B
Capital Expenditure$2.2B
FCF Margin8.9%
Cash Conversion Rate148.2%
Net Margin7.7%
Total Debt$44.7B
Total Cash$982.0M
Net Cash-$43.7B
Current Ratio1.08
Debt / Equity0.00
Debt / FCF5.8x
YoY FCF Growth+165.6%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateJan 31, 2026
GradeC
Data SourceYahoo Finance