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Lowe'sMIL:1LOW -0.65%57 Return-on-Tangible-Equity is Negative Tangible Equity% as of Apr. 2026. GuruFocus rates MIL:1LOW with a GF Score™ of 57/100 and a GF Value™ of €218.79 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,059 Retail - Cyclical companies, Lowe's ranks better than 99.91% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Lowe's's annualized net income for the quarter that ended in Apr. 2026 was €5,568 Mil. Lowe's's average shareholder tangible equity for the quarter that ended in Apr. 2026 was €-16,544 Mil. Therefore, Lowe's's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Lowe's's Return-on-Tangible-Equity or its related term are showing as below:
MIL:1LOW'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 48.1 Med: 69.51 Max: 342.33
Current: Negative Tangible Equity
During the past 13 years, Lowe's's highest Return-on-Tangible-Equity was 342.33%. The lowest was 48.10%. And the median was 69.51%.
MIL:1LOW's Return-on-Tangible-Equity is ranked better than 99.91% of 1059
companies
in the Retail - Cyclical industry
Industry Median: 8.45
vs MIL:1LOW: Negative Tangible Equity
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Lowe's Return-on-Tangible-Equity Related Terms
Lowe's Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Lowe's's Return-on-Tangible-Equity 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.
MIL:1LOW vs FND, HVT, TTSH: Return-on-Tangible-Equity Comparison
For the Home Improvement Retail subindustry, Lowe's's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Lowe's's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Lowe's's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
Lowe's (MIL:1LOW) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Lowe's and its competitors. Over the past decade, Lowe's' Return-on-Tangible-Equity has ranged from 48.10 to 342.33. According to the industry distribution chart, Lowe's ranks #1 out of 1059 companies in the Retail - Cyclical industry, placing it in the top 0.099999999999994%.
Is Lowe's' Return-on-Tangible-Equity too high?
Lowe's' current Return-on-Tangible-Equity is Negative Tangible Equity%. Over the past 10 years, this metric has ranged from a low of 48.10 to a high of 342.33. Based on the distribution chart, Lowe's ranks #1 out of 1059 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 57/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lowe's' Return-on-Tangible-Equity compare to FND and HVT?
According to the Retail - Cyclical industry distribution chart, Lowe's ranks #1 out of 1059 companies for Return-on-Tangible-Equity. This places Lowe's in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.45. Historically, Lowe's' own Return-on-Tangible-Equity has ranged from 48.10 to 342.33 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.45, based on 1,059 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Lowe's and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lowe's's current Return-on-Tangible-Equity is Negative Tangible Equity%. 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 (MIL:1LOW) is currently considered Modestly Undervalued. The stock's GF Value™ is €218.79, compared to a current price of €182.90 — trading 16.4% below its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Lowe's' overall GF Score™ is 57/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Lowe's (MIL:1LOW), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 (MIL:1LOW) Overvalued in 2026?
Based on GuruFocus' analysis, Lowe's stock appears to be undervalued.
The current stock price of €182.90 is trading 16.4% below its estimated GF Value™ of €218.79.
GuruFocus considers Lowe's to be Modestly Undervalued.
No single metric tells the full story. See the MIL:1LOW 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.
57GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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