Lowe'sMIL:1LOW 57 ROE % is Negative Equity% as of Apr. 2026. GuruFocus rates MIL:1LOW with a GF Score™ of 57/100 and a GF Value™ of €211.14 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,092 Retail - Cyclical companies, Lowe's ranks better than 99.91% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Lowe's's annualized net income for the quarter that ended in Apr. 2026 was €5,568 Mil. Lowe's's average Total Stockholders Equity over the quarter that ended in Apr. 2026 was €-8,183 Mil. Therefore, Lowe's's annualized ROE % for the quarter that ended in Apr. 2026 was Negative Equity%.
The historical rank and industry rank for Lowe's's ROE % or its related term are showing as below:
MIL:1LOW'
s ROE % Range Over the Past 10 Years
Min: 43.88 Med: 56.02 Max: 342.33
Current: Negative Equity
During the past 13 years, Lowe's's highest ROE % was 342.33%. The lowest was 43.88%. And the median was 56.02%.
MIL:1LOW's ROE % is ranked better than 99.91% of 1092
companies
in the Retail - Cyclical industry
Industry Median: 6.49
vs MIL:1LOW: Negative Equity
Lowe's (MIL:1LOW) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Lowe's ROE % Related Terms
Lowe's ROE % Historical Data
* Premium members only.
The historical data trend for Lowe's's ROE % 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.
For the Home Improvement Retail subindustry, Lowe's's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Lowe's's ROE % distribution charts can be found below:
* The bar in red indicates where Lowe's's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
* Note that if the average Total Stockholders Equity is zero or negative, then ROE % would be considered meaningless and hence not be calculated.
Lowe's (MIL:1LOW) has a ROE % of Negative Equity% as of Apr. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Lowe's and its competitors. Over the past decade, Lowe's' ROE % has ranged from 43.88 to 342.33. According to the industry distribution chart, Lowe's ranks #1 out of 1092 companies in the Retail - Cyclical industry, placing it in the top 0.099999999999994%.
Is Lowe's' ROE % too high?
Lowe's' current ROE % is Negative Equity%. Over the past 10 years, this metric has ranged from a low of 43.88 to a high of 342.33. Based on the distribution chart, Lowe's ranks #1 out of 1092 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' ROE % compare to FND and HVT?
According to the Retail - Cyclical industry distribution chart, Lowe's ranks #1 out of 1092 companies for ROE %. This places Lowe's in the top 0% of its industry — outperforming the majority of peers. The industry median ROE % is 6.49. Historically, Lowe's' own ROE % has ranged from 43.88 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 ROE % for a Retail - Cyclical company?
The median ROE % among Retail - Cyclical companies is 6.49, based on 1,092 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Lowe's and its competitors. For the Retail - Cyclical industry, the median ROE % is 6.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lowe's's current ROE % is Negative 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 €211.14, compared to a current price of €188.30 — trading 10.8% below its estimated fair value. The current ROE % is Negative 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Lowe's (MIL:1LOW), the current ROE % is Negative 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 €188.30 is trading 10.8% below its estimated GF Value™ of €211.14.
GuruFocus considers Lowe's to be Modestly Undervalued.
Key valuation signals for MIL:1LOW:
ROE %: Negative Equity%
GF Value™: €211.14 vs. price of €188.30 (10.8% below fair value)
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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