Lowes Companies Return On Equity vs. Revenue
| LWE Stock | EUR 259.55 2.40 0.93% |
For Lowes Companies profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lowes Companies to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lowes Companies utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lowes Companies's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lowes Companies over time as well as its relative position and ranking within its peers.
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Lowes Companies Revenue vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Lowes Companies's current stock value. Our valuation model uses many indicators to compare Lowes Companies value to that of its competitors to determine the firm's financial worth. Lowes Companies is currently regarded as number one stock in return on equity category among its peers. It also is considered the number one company in revenue category among its peers totaling about 146,321,070,234 of Revenue per Return On Equity. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Lowes Companies' earnings, one of the primary drivers of an investment's value.Lowes Revenue vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
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| = | 0.66 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Lowes Companies |
| = | 96.25 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Lowes Revenue vs Competition
Lowes Companies is considered the number one company in revenue category among its peers. Market size based on revenue of Home Improvement Stores industry is now estimated at about 231.04 Billion. Lowes Companies totals roughly 96.25 Billion in revenue claiming about 42% of equities under Home Improvement Stores industry.
Lowes Companies Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Lowes Companies, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lowes Companies will eventually generate negative long term returns. The profitability progress is the general direction of Lowes Companies' change in net profit over the period of time. It can combine multiple indicators of Lowes Companies, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Lowes Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States, Canada, and Mexico. Lowes Companies, Inc. was founded in 1946 and is based in Mooresville, North Carolina. LOWES COS operates under Home Improvement Stores classification in Germany and is traded on Frankfurt Stock Exchange. It employs 300000 people.
Lowes Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Lowes Companies. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Lowes Companies position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Lowes Companies' important profitability drivers and their relationship over time.
Use Lowes Companies in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Lowes Companies position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lowes Companies will appreciate offsetting losses from the drop in the long position's value.Lowes Companies Pair Trading
Lowes Companies Pair Trading Analysis
The ability to find closely correlated positions to Lowes Companies could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lowes Companies when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Lowes Companies - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Lowes Companies to buy it.
The correlation of Lowes Companies is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Lowes Companies moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lowes Companies moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Lowes Companies can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Lowes Companies position
In addition to having Lowes Companies in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Funds or Etfs that invest using buy-and-hold investment strategy in companies with consistent growth over many years of operation. The Conservative Funds theme has 37 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Conservative Funds Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Lowes Stock
When determining whether Lowes Companies is a strong investment it is important to analyze Lowes Companies' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Lowes Companies' future performance. For an informed investment choice regarding Lowes Stock, refer to the following important reports:Check out Correlation Analysis. For more detail on how to invest in Lowes Stock please use our How to Invest in Lowes Companies guide.You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.
To fully project Lowes Companies' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Lowes Companies at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Lowes Companies' income statement, its balance sheet, and the statement of cash flows.