LOW - Embedded Expectations Analysis - 2020 04 13
ï€ Lowe's Companies, Inc. (LOW:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) earnings, with a 20.3x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may be concerned about sales declines, their Pro business, and online capabilitiesï€ Specifically, management may be concerned about their monthly sales comp declines, core business capex investments, and the impact of unfavorable weather on sales. In addition, they may lack confidence in their ability to sustain improvements in their operating income, pro-business fundamentals, and adjusted diluted earnings per share. Furthermore, management may be exaggerating their focus on retail fundamentals and the customer's best interest, and they may be overstating their ability to improve Pro business penetration and expand their online assortment and capabilities. Finally, they may be exaggerating the progress of their business transformation and may lack confidence in their ability to improve execution in Canada, the potential of their strategic investments, and their stock levels
Lowe's Companies is a home improvement retailer. The company provides home improvement products in lumber and building materials, appliances, seasonal and outdoor living, tools and hardware, fashion fixtures, rough plumbing and electrical, paint, millwork, lawn and garden, flooring, and kitchens categories. The company provides installation services through independent contractors in product categories, including appliances, flooring, kitchens, lumber and building materials, and millwork. The company also provides extended protection plans for various products within the appliances, kitchens, fashion fixtures, millwork, rough plumbing and electrical, seasonal and outdoor living, and tools and hardware categories.
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