Lowe'sFRA:LWE +1.20%84 Pretax Margin % is 9.34% as of Apr. 2026, which is 4% above its 10-year median of 8.98. GuruFocus rates FRA:LWE with a GF Score™ of 84/100 and a GF Value™ of €206.84 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,124 Retail - Cyclical companies, Lowe's ranks better than 77.67% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Lowe's's Pre-Tax Income for the
three
months ended in Apr. 2026 was €1,843 Mil. Lowe's's Revenue for the
three
months ended in Apr. 2026 was €19,732 Mil. Therefore, Lowe's's pretax margin for the quarter that ended in Apr. 2026 was 9.34%.
The historical rank and industry rank for Lowe's's Pretax Margin % or its related term are showing as below:
FRA:LWE'
s Pretax Margin % Range Over the Past 10 Years
Min: 4.76 Med: 8.98 Max: 11.78
Current: 9.89
FRA:LWE's Pretax Margin % is ranked better than 77.67% of 1124
companies
in the Retail - Cyclical industry
Industry Median: 3.17
vs FRA:LWE: 9.89
Lowe's (FRA:LWE) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Lowe's Pretax Margin % Related Terms
Lowe's Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Lowe's's Pretax Margin % 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.
FRA:LWE vs FND, HVT, TTSH: Pretax Margin % Comparison
For the Home Improvement Retail subindustry, Lowe's's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Lowe's's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Lowe's's Pretax Margin % falls into.
* 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.
Lowe's (FRA:LWE) has a Pretax Margin % of 9.34% as of Apr. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Lowe's and its competitors. This is near median its historical median of 8.98. Over the past decade, Lowe's' Pretax Margin % has ranged from 4.76 to 11.78. According to the industry distribution chart, Lowe's ranks #251 out of 1124 companies in the Retail - Cyclical industry, placing it in the top 22.3%.
Is Lowe's' Pretax Margin % too high?
Lowe's' current Pretax Margin % of 9.34% is near median its 10-year median of 8.98. Over the past 10 years, this metric has ranged from a low of 4.76 to a high of 11.78. The Retail - Cyclical industry median Pretax Margin % is 3.17. Lowe's' value of 9.34% is 194.6% above this industry median. Based on the distribution chart, Lowe's ranks #251 out of 1124 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Lowe's has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Lowe's' Pretax Margin % compare to FND and HVT?
According to the Retail - Cyclical industry distribution chart, Lowe's ranks #251 out of 1124 companies for Pretax Margin %. This places Lowe's in the top 22% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 3.17. Lowe's' value of 9.34% is 194.6% above this benchmark. Historically, Lowe's' own Pretax Margin % has ranged from 4.76 to 11.78 over the past decade. While the company's 10-year median is 8.98 vs. the industry median of 3.17, Lowe's has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Retail - Cyclical company?
The median Pretax Margin % among Retail - Cyclical companies is 3.17, based on 1,124 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lowe's's current Pretax Margin % of 9.34% is 194.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Lowe's and its competitors. For the Retail - Cyclical industry, the median Pretax Margin % is 3.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lowe's's current Pretax Margin % is 9.34%, which is near median its own 10-year median of 8.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lowe's stock overvalued right now?
Based on GuruFocus' analysis, Lowe's (FRA:LWE) is currently considered Fairly Valued. The stock's GF Value™ is €206.84, compared to a current price of €194.05 — trading 6.2% below its estimated fair value. The current Pretax Margin % is 9.34%, which is near median its 10-year median of 8.98 and 194.6% above the Retail - Cyclical industry median of 3.17. Lowe's' overall GF Score™ is 84/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Lowe's (FRA:LWE), the current Pretax Margin % is 9.34% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lowe's (FRA:LWE) Overvalued in 2026?
Based on GuruFocus' analysis, Lowe's stock appears to be undervalued.
The current stock price of €194.05 is trading 6.2% below its estimated GF Value™ of €206.84.
GuruFocus considers Lowe's to be Fairly Valued.
Key valuation signals for FRA:LWE:
Pretax Margin %: 9.34% (near median its 10-year median of 8.98)
GF Value™: €206.84 vs. price of €194.05 (6.2% below fair value)
Industry Position: 194.6% above the Retail - Cyclical median (#251 of 1124)
No single metric tells the full story. See the FRA:LWE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lowe's is the second-largest home improvement retailer globally, with 1,759 stores in the US, after the 2023 divestiture of its Canadian locations. 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 primarily targets retail do-it-yourself (around 70% of sales) and do-it-for-me customers, but has expanded its professional business clients to 30% from less than 20% in the past seven years (set to expand further with the acquisition of FBM). 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.
84GF Score
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