Want to invest in an American company? You may be interested in Lowe's, a company that operates in construction and renovation, two very buoyant industries in the United States. To find out more about Lowe’s and its performance on the stock market, take a look at our guide.
Introduction to Lowe's stock
A little history
Founded in 1946, Lowe's Home Improvement Warehouse is a U.S. retail chain specializing in the sale of building materials, do-it-yourself and gardening products, and appliances. Today, it is one of the market leaders in the United States.
In 2016, it acquired Rona, and began to expand into Canada.
In 2017, Lowe's took things a step further by acquiring Maintenance Supply Headquarters, a company specializing in professional equipment sales.
The company has an extensive distribution network of 1,977 stores, of which 1,728 are located in the United States and 249 in Canada. In addition, the company sells products online.
Lowe's shareholding is composed as follows:
- 45.20 % to Capital Research & Management Co
- 07.97 % to The Vanguard Group, Inc
- 04.37 % to SSgAFunds Management Inc
- 03.68 % to Fidelity Management & Research Co
- 03.01 % to Sands Capital Management
- 02.39 % to BlackRockFundAdvisors
- 01.69 % to Pershing Square Capital Management
- 01.43 % to Geode Capital Management
- 01.30 % to Northern Trust Investments, Inc
- 01.22 % to Wells Fargo Clearing Services
Lowe’s has a fair number of competitors in the construction, DIY and gardening equipment distribution sector, including market leaders such as Home Depot and Walmart. Other direct competitors include Menard, True Value, Do it Best, Target, Dollar General, and Best Buy.
Lowe's achieved a turnover of 63,078 million euros in 2020, against 59,530 million in 2019. The net income group share was 218 million euros in 2020.
Lowe's sales by product family can be broken down as follows:
- 35.9 % in coating products, paint and kitchen accessories
- 31.9 % in hardware, carpentry and plumbing products alongside building materials
- 29.4 % in gardening, lawn and outdoor decoration products
- 02.8 % in products and services
93.1 % of Lowe's revenue is generated in the United States and the rest in Canada.
Lowe's stock data
Lowe's stock is listed on the NYSE retail sector. Lowe's is included in the calculation of the SP100 stock index and has a market capitalization of over 137,183 million USD. The number of shares outstanding is 717,256,852.
Factors that can impact Lowe's share price
Lowe's stock has the advantage of being stable, but prices are strongly influenced by its competitors’ strategies, especially those of Home Depot.
The company struggles to expand internationally, while other large international brands begin to invest in the United States. The fact that sales are restricted to a single geographical area is a risk that may discourage investors.
Lowe’s Canadian activities need close monitoring. The company generates only a small portion of its sales in Canada, but operating costs and expenses can have an impact on results.