LOW (Lowe's Companies Inc) vs S&P 500 Comparison

LOW

S&P 500

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LOW

S&P 500

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LOW

S&P 500

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S&P 500

LOW

FND

KGF

MDIYF

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Lowe's Companies Inc
Glance View

Economic Moat

Wide

Market Cap

139.5B USD

Industry

Retail

Lowe's Companies Inc., a stalwart in the home improvement retail sector, has been navigating the intricacies of the business landscape since its founding in 1946. With a humble beginning as a small hardware store in North Carolina, the company has transformed into a powerhouse in the American retail industry. Lowe's operates an extensive network of over 1,700 stores across the United States, serving the needs of DIY enthusiasts, professional contractors, and everyone in between. The company's operations hinge on a synergistic blend of product variety, customer service, and strategic localization, ensuring that each store meets the specific needs of its community. Lowe's makes money through a meticulously curated assortment of products, encompassing everything from basic tools and hardware to high-end appliances and home décor. Their business model is predominantly driven by sales of these products, both in-store and online, supported by ancillary services like installation and repair which enhance customer experience and engagement. By continually adapting to market trends and consumer demands, Lowe's stays relevant in an ever-evolving retail landscape. The company's financial success rests on a disciplined approach to inventory management, a keen focus on supply chain efficiency, and a commitment to competitive pricing, all of which are designed to maximize profitability while maintaining customer loyalty.

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LOW Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

US		Home Depot Inc NYSE:HD	Add
ZA	I	Italtile Ltd JSE:ITE	Add
US		Floor & Decor Holdings Inc NYSE:FND	Add
UK		Kingfisher PLC LSE:KGF	Add
ZA	C	Cashbuild Ltd JSE:CSB	Add
MY		Mr DIY Group (M) Bhd OTC:MDIYF	Add
MY	M	Mr DIY Group M Bhd KLSE:MRDIY	Add
TH	H	Home Product Center PCL SET:HMPRO	Add
TH	S	Siam Global House PCL SET:GLOBAL	Add
DE	H	Hornbach Baumarkt AG XETRA:HBM	Add

US		Home Depot Inc NYSE:HD	Select
ZA	I	Italtile Ltd JSE:ITE	Select
US		Floor & Decor Holdings Inc NYSE:FND	Select
UK		Kingfisher PLC LSE:KGF	Select
ZA	C	Cashbuild Ltd JSE:CSB	Select
MY		Mr DIY Group (M) Bhd OTC:MDIYF	Select
MY	M	Mr DIY Group M Bhd KLSE:MRDIY	Select
TH	H	Home Product Center PCL SET:HMPRO	Select
TH	S	Siam Global House PCL SET:GLOBAL	Select
DE	H	Hornbach Baumarkt AG XETRA:HBM	Select

US		Home Depot Inc NYSE:HD	Add
ZA	I	Italtile Ltd JSE:ITE	Add
US		Floor & Decor Holdings Inc NYSE:FND	Add
UK		Kingfisher PLC LSE:KGF	Add
ZA	C	Cashbuild Ltd JSE:CSB	Add
MY		Mr DIY Group (M) Bhd OTC:MDIYF	Add
MY	M	Mr DIY Group M Bhd KLSE:MRDIY	Add
TH	H	Home Product Center PCL SET:HMPRO	Add
TH	S	Siam Global House PCL SET:GLOBAL	Add
DE	H	Hornbach Baumarkt AG XETRA:HBM	Add

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	Home Depot Inc NYSE:HD	387.2 USD

LOW

vs

S&P 500

Stocks Performance
LOW vs S&P 500

Performance Gap
LOW vs S&P 500

Performance By Year
LOW vs S&P 500

Competitors Performance
Lowe's Companies Inc vs Peers

Lowe's Companies Inc
Glance View

Company

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LOW vs S&P 500

Stocks Performance LOW vs S&P 500

Performance Gap LOW vs S&P 500

Performance By Year LOW vs S&P 500

Competitors Performance Lowe's Companies Inc vs Peers

Lowe's Companies Inc Glance View

Company

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Stocks

LOW

vs

S&P 500

Stocks Performance
LOW vs S&P 500

Performance Gap
LOW vs S&P 500

Performance By Year
LOW vs S&P 500

Competitors Performance
Lowe's Companies Inc vs Peers

Lowe's Companies Inc
Glance View