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LOW (Lowe's) Owner Earnings per Share (TTM) : 12.32 (As of Jul. 2024)


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What is Lowe's Owner Earnings per Share (TTM)?

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Lowe's's Owner Earnings per Share (TTM) ended in Jul. 2024 was $12.32. It's Price-to-Owner-Earnings ratio for today is 21.25.


The historical rank and industry rank for Lowe's's Owner Earnings per Share (TTM) or its related term are showing as below:

LOW' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 10.71   Med: 19.96   Max: 144.46
Current: 21.26


During the past 13 years, the highest Price-to-Owner-Earnings ratio of Lowe's was 144.46. The lowest was 10.71. And the median was 19.96.


LOW's Price-to-Owner-Earnings is ranked worse than
70.79% of 534 companies
in the Retail - Cyclical industry
Industry Median: 11.41 vs LOW: 21.26

Lowe's's Earnings per Share (Diluted) for the three months ended in Jul. 2024 was $4.17. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jul. 2024 was $12.06. It's PE Ratio (TTM) ratio for today is 21.71.

Lowe's's EPS without NRI for the three months ended in Jul. 2024 was $4.10. Its EPS without NRI for the trailing twelve months (TTM) ended in Jul. 2024 was $12.81. It's PE Ratio without NRI ratio for today is 20.44.


Lowe's Owner Earnings per Share (TTM) Historical Data

The historical data trend for Lowe's's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Lowe's Owner Earnings per Share (TTM) Chart

Lowe's Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Owner Earnings per Share (TTM)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.13 10.67 11.47 6.08 9.81

Lowe's Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
Owner Earnings per Share (TTM) Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.30 8.05 9.81 13.45 12.32

Competitive Comparison of Lowe's's Owner Earnings per Share (TTM)

For the Home Improvement Retail subindustry, Lowe's's Price-to-Owner-Earnings, along with its competitors' market caps and Price-to-Owner-Earnings data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Lowe's's Price-to-Owner-Earnings Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Lowe's's Price-to-Owner-Earnings distribution charts can be found below:

* The bar in red indicates where Lowe's's Price-to-Owner-Earnings falls into.



Lowe's Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Lowe's's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 6,931
Depreciation, Depletion and Amortization 1,949
Change In Deferred Tax 49
5Y Average of Maintenance Capital Expenditure 1,841
Change In Working Capital -67
Shares Outstanding (Diluted Average) 570

1. Start with "Net Income" from income statement. Lowe's's Net Income for the trailing twelve months (TTM) ended in Jul. 2024 was $6,931 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Lowe's's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Jul. 2024 was $1,949 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Lowe's's Change In Deferred Tax for the trailing twelve months (TTM) ended in Jul. 2024 was $49 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $1,841 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous quarter. If the revenue decreased from the previous quarter, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous quarter, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Lowe's's 5-Year Average Maintenance Capital Expenditure = $1,841 Mil

5. "Change In Working Capital" is from cashflow statement. Lowe's's Change In Working Capital for the trailing twelve months (TTM) ended in Jul. 2024 was $-67 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Lowe's's Shares Outstanding (Diluted Average) for the months ended in Jul. 2024 was 570.000 Mil.

Lowe's's Onwer Earnings Per Share for Jul. 2024 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 6931 +1949+49
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-1840.6+-67)/570.000
=12.32

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=261.83/12.32
=21.25

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Lowe's Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of Lowe's's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Lowe's Business Description

Address
1000 Lowes Boulevard, Mooresville, NC, USA, 28117
Lowe's is the second-largest home improvement retailer in the world, operating more than 1,700 stores in the United States, after the 2023 divestiture of its Canadian locations (RONA, Lowe's Canada, Réno-Dépôt, and Dick's Lumber). The firm's stores offer products and services for home decorating, maintenance, repair, and remodeling, with maintenance and repair accounting for two thirds of products sold. Lowe's targets retail do-it-yourself (around 75% of sales) and do-it-for-me customers as well as commercial and professional business clients (around 25% of sales). We estimate Lowe's captures a high-single-digit share of the domestic home improvement market, based on US Census data and management's market size estimates.
Executives
Griggs Dan Clayton Jr officer: Vice President, CAO 1000 LOWES BOULEVARD, MOORESVILLE NC 28117
Brandon J Sink officer: EVP, Chief Financial Officer 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117
Seemantini Godbole officer: EVP, Chief Information Officer 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117
Janice Dupre Little officer: EVP Human Resources 1000 LOWES BOULEVARD, MOORESVILLE NC 28117
Joseph Michael Mcfarland officer: EVP, Stores 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117
Quonta D Vance officer: EVP, Pro & Home Services 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117
Donald Frieson officer: EVP, Supply Chain 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117
William P Boltz officer: EVP, Merchandising 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117
Juliette Williams Pryor officer: EVP, CLO & Corp. Sec. 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117
Ross W Mccanless officer: SR VP Gen Counsel & Secretary
Scott H Baxter director 400 NORTH ELM STREET, GREENSBORO NC 27401
Taylor Colleen director C/O BILL.COM HOLDINGS, INC., 1800 EMBARCADERO ROAD, PALO ALTO CA 94303
Stone West Mary E director C/O HASBRO, INC., 1011 NEWPORT AVENUE, PAWTUCKET RI 02861
Daniel J Heinrich director CLOROX CO, 1221 BROADWAY, OAKLAND CA 94612
David H Batchelder director 1000 LOWE'S BOULEVARD, MOORESVILLE NC 28117