Quality score · LOW · Consumer Discretionary

Is Lowe's Companies, Inc. a quality business?

Lowe's Companies, Inc. (LOW) scored on five pillars from its reported financial statements, and ranked against 179 Consumer Discretionary companies.

5.8/ 10
Solid quality
as of October 17, 2026
Profitability
7.1 Strong
Solvency
5.2 Average
Growth
2.4 Weak
Efficiency
7.4 Strong
Predictability
7.3 Strong
Strongest pillar: Efficiency · Weakest: Growth

Lowe's Companies, Inc. (LOW) scores 5.8 out of 10 as of , computed from its reported financial statements. That reads as solid quality. The reading rests on efficiency, and growth is what holds it back.

Data provided by Twelve Data. Scores are computed by Lemma Analysis from reported financials.

Does Lowe's Companies, Inc. have an economic moat?

Not enough data

We cannot judge Lowe's Companies, Inc. yet, because fewer than five years had both a return on capital and a cost of capital we could measure. This is not a “no”.

Quantitative signs of a moat, read from the filed statements. This is not a judgement of where it comes from (brand, network effects, switching costs). How Lemma measures a moat →

How Lowe's Companies, Inc. scores

On the filings behind it, Lowe's Companies, Inc. earns 5.8 out of 10 for business quality as of October 17, 2026. That is solid quality on our scale. A solid reading is a respectable business with clear strengths and at least one area that falls short of the best in its field. The figure is a weighted average of five pillars, each scored from 0 to 10 against sector-aware benchmarks from reported statements.

Set against 179 Consumer Discretionary companies, Lowe's Companies, Inc. lands at the 67th percentile, in the better half of its peers. For reference, the middle of the group scores 5.0 and a company needs 6.1 to reach its top quarter, which leaves Lowe's Companies, Inc. above the median.

Pillar by pillar

Profitability

Profitability scores 7.1 out of 10, which reads as strong. The median across 176 Consumer Discretionary companies is 5.1, so Lowe's Companies, Inc. is well above its peers on this pillar and ranks at the 71st percentile. High profitability means each unit of capital and of sales is turning into more profit than at most of its peers, which is usually the first sign of pricing power or a cost advantage.

Solvency

Solvency scores 5.2 out of 10, which reads as average. The median across 141 Consumer Discretionary companies is 5.9, so Lowe's Companies, Inc. is below its peers on this pillar and ranks at the 43rd percentile. Middling solvency says the balance sheet is neither a strength nor a constraint today.

Growth

On growth, Lowe's Companies, Inc. scores 2.4, a weak reading. Its peers have a median of 4.0 across 149 Consumer Discretionary companies, which places it well below them, at the 29th percentile. A low growth score is common for large, established companies and is not a verdict on quality on its own, but it limits how the business can compound.

Efficiency

Lowe's Companies, Inc.’s efficiency score is 7.4 out of 10 (strong). Against a median of 6.2 among 170 Consumer Discretionary companies, that is above the group and the 84th percentile. High efficiency means assets and earnings are being turned into cash and output better than at most peers, a sign of a well run operation.

Predictability

On predictability, Lowe's Companies, Inc. scores 7.3, a strong reading. Its peers have a median of 5.0 across 178 Consumer Discretionary companies, which places it well above them, at the 88th percentile. High predictability means the company’s results have moved steadily from year to year, which makes the other pillars more trustworthy as a guide.

Strongest and weakest pillar

This is a lopsided profile. Efficiency scores 7.4 but growth only 2.4, a gap of 5.0 points, so the overall hides a business that is excellent in one respect and weak in another. An efficiency lead means the operation turns what it has into cash better than it does anything else. A growth shortfall often comes with size or a maturing market, and is less of a concern if the other pillars are strong.

What would move the score

Closing the gap on growth would do the most for the overall. At the median of Consumer Discretionary companies, 4.0, Lowe's Companies, Inc. would score about 6.1 instead of 5.8. All five pillars could be scored, so the overall uses the full set of weights out of 100: profitability 25, solvency 20, growth 20, efficiency 15, predictability 20.

Lowe's Companies, Inc. and similar companies

These are the Consumer Discretionary companies closest to Lowe's Companies, Inc. in market value. Each has its own page scored on the same five pillars, so the comparison is like for like.

What each pillar measures

Profitability

7.1 / 10

How much profit the company generates from its capital and sales.

Solvency

5.2 / 10

The company’s ability to service debt and meet its obligations.

Growth

2.4 / 10

How fast revenue, earnings and cash flow are compounding.

Efficiency

7.4 / 10

How well assets and earnings convert into cash and output.

Predictability

7.3 / 10

How stable and consistent results have been over time.

How this score is calculated

Each metric is scored from 0 to 10 against sector-aware benchmarks, where higher is better. Metrics roll up into five pillars, and the pillars combine into the overall score using the weights shown. Sector-sensitive metrics are judged relative to peers in the same sector.

Limitations

This score is a systematic, backward-looking read of reported fundamentals. It does not judge valuation, management quality, competitive moat, or future prospects, and can be distorted by one-off items or unusual accounting. Treat it as a starting point, not a recommendation.

Educational only. Not investment advice.

FAQ

Is Lowe's Companies, Inc. a quality business?

On this reading Lowe's Companies, Inc. scores 5.8 out of 10, which reads as solid quality. Its strongest pillar is efficiency, its weakest is growth. Quality is not the same as a good investment: the score says nothing about the price you would pay.

How does Lowe's Companies, Inc. compare with other Consumer Discretionary companies?

Lowe's Companies, Inc. ranks at the 67th percentile of the 179 Consumer Discretionary companies Lemma publishes a score for. The median there is 5.0 and the top quarter starts at 6.1, against Lowe's Companies, Inc.’s 5.8.

What does the LOW quality score measure?

Five pillars, each scored from 0 to 10 against sector-aware benchmarks and then weighted into one overall reading: profitability, solvency, growth, efficiency and predictability. Everything comes from reported financials, and nothing comes from price, sentiment or forecasts.

How current is this score?

This page last changed on October 17, 2026. The score moves with the financial statements, so the page changes when a new filing moves the reading rather than on a schedule. Live figures for LOW are in the app.

Does a high score mean the stock is cheap?

No. Quality and valuation are separate questions, and a good business at the wrong price is still a bad purchase. Score the business here, then price it with a DCF you control.

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Inside Lemma Analysis the same five pillars run on every company we cover, with the metrics behind each one, current fundamentals, a DCF you control and a watchlist that tells you when the price catches up.

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