Lowe'sLOW -0.64%84 3-Year ROIIC % is 3.84 as of Jan. 2026, which is 92% below its 10-year median of 47.24. GuruFocus rates LOW with a GF Score™ of 84/100 and a GF Value™ of $250.13 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,053 Retail - Cyclical companies, Lowe's ranks worse than 51.95% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Lowe's's 3-Year ROIIC % for the quarter that ended in Jan. 2026 was 3.84%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Lowe's's 3-Year ROIIC % or its related term are showing as below:
LOW's 3-Year ROIIC % is ranked worse than 51.95% of 1053
companies
in the Retail - Cyclical industry
Industry Median: 4.82
vs LOW: 3.84
Lowe's (NYSE:LOW) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Lowe's 3-Year ROIIC % Related Terms
Lowe's 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Lowe's's 3-Year ROIIC % 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 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Lowe's's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Lowe's's 3-Year ROIIC % falls into.
Lowe's's 3-Year ROIIC % for the quarter that ended in Jan. 2026 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 7723.3871 (Jan. 2026) - 7237.2716 (Jan. 2023) )
/
( 41821 (Jan. 2026) - 29148 (Jan. 2023) )
=
486.1155
/
12673
=
3.84%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Lowe's (LOW) has a 3-Year ROIIC % of 3.84 as of Jan. 2026. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Lowe's and its competitors. This is 92% below median its historical median of 47.24. According to the industry distribution chart, Lowe's ranks #547 out of 1053 companies in the Retail - Cyclical industry, placing it in the top 51.9%.
Is Lowe's' 3-Year ROIIC % too high?
Lowe's' current 3-Year ROIIC % of 3.84 is 92% below median its 10-year median of 47.24. The Retail - Cyclical industry median 3-Year ROIIC % is 4.82. Lowe's' value of 3.84 is 20.3% below this industry median. Based on the distribution chart, Lowe's ranks #547 out of 1053 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Lowe's has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lowe's' 3-Year ROIIC % compare to FND and HVT?
According to the Retail - Cyclical industry distribution chart, Lowe's ranks #547 out of 1053 companies for 3-Year ROIIC %. This places Lowe's in the lower half of its industry. The industry median 3-Year ROIIC % is 4.82. Lowe's' value of 3.84 is 20.3% below this benchmark. While the company's 10-year median is 47.24 vs. the industry median of 4.82, Lowe's has consistently been below 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 3-Year ROIIC % for a Retail - Cyclical company?
The median 3-Year ROIIC % among Retail - Cyclical companies is 4.82, based on 1,053 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lowe's's current 3-Year ROIIC % of 3.84 is 20.3% below 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Lowe's and its competitors. For the Retail - Cyclical industry, the median 3-Year ROIIC % is 4.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lowe's's current 3-Year ROIIC % is 3.84, which is 92% below median its own 10-year median of 47.24. 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 (LOW) is currently considered Modestly Undervalued. The stock's GF Value™ is $250.13, compared to a current price of $211.63 — trading 15.4% below its estimated fair value. The current 3-Year ROIIC % is 3.84, which is 92% below median its 10-year median of 47.24 and 20.3% below the Retail - Cyclical industry median of 4.82. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Lowe's (LOW), the current 3-Year ROIIC % is 3.84 as of Jan. 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 (LOW) Overvalued in 2026?
Based on GuruFocus' analysis, Lowe's stock appears to be undervalued.
The current stock price of $211.63 is trading 15.4% below its estimated GF Value™ of $250.13.
GuruFocus considers Lowe's to be Modestly Undervalued.
Key valuation signals for LOW:
3-Year ROIIC %: 3.84 (92% below median its 10-year median of 47.24)
GF Value™: $250.13 vs. price of $211.63 (15.4% below fair value)
Industry Position: 20.3% below the Retail - Cyclical median (#547 of 1053)
No single metric tells the full story. See the LOW 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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