Lowe's Companies, Inc. is the second largest home improvement retailer in the United States. It offers specific products and services in line with decorating, renovating, remodelling, repair of home and commercial buildings. As of February 2, 2007, Lowe's has opened 1,534 stores in all 50 states and Canada, with 174.1 million square feet of selling spaces.There are two types of Lowe's stores: (1) large markets with approximately 117,000 square feet of selling spaces, and (2) small markets with approximately 94,000 square feet of selling spaces. Aside from home improvement products and services, all Lowe's markets have centers for gardens and lawns. The stores have about 40,000 items in stock. Thousands more merchandise are available via special orders and through online transactions. Some of the merchandise brand names carried by Lowe's are DeWalt, John Deere, and ClosetMaid.
[...] Conclusion Lowe's Companies, Inc. is a company which aims to provide home improvement products and services to as means of giving customer-valued solutions. They hope to eventually be the first choice for home improvement needs—eventually eclipsing the industry leader, Home Depot. I believe that the company can achieve their main goals by sticking to the plan as stated by the vision—they should be provide good products and services to the consumers. Other means of gaining competitive advantage may be investing on more efficient ways of reducing operational costs, integrating various systems promoting efficiency in [...]
[...] The stock performance of Lowe's Inc. as of May is seen on Table 2. Table 2. Stock Quote Stock Activity Stock Price History Strength Mil Note 2. The following data was obtained from MSN Money Central (Lowe's Companies Inc: Company Report, 2008). From the Home Depot's stock quote (Company Profile: Home Depot Inc., 2008), the P/E or the Price to Earnings Ratio of Lowe's as of May is The computed P/E of Home Depot, the benchmark company shows that its P/E is Comparing these two values, we can say that Lowe's stocks are overvalued ( 13.68 versus 12.55 High or overpriced P/E shows that the market is interested and willing to pay for Lowe's revenues. [...]
[...] The best decision is therefore to or “Hold/Sell” for more conservative actions. Financial Metrics The following data were acquired from Lowe's Companies Inc.'s Annual Report for 2007 (Lowe's Companies, Inc. Annual Report 2007) and 2006 (Lowe's Companies, Inc. Anuual Report 2006). The Consolidated Balance Sheet can be found in Appendix A. The Consolidated Statements of Shareholders' Equity can be found in Appendix B. The Consolidated Statements of Cash Flows can be found in Appendix C. Table 4. Selected Financial Information in Millions of Dollars Liabilities Equity Table 5. [...]
[...] gathered from the Annual Reports of Lowe's Companies, Inc. and Home Depot for FY 2007 (Home Depot Annual Report 2006). From the financial ratios above, it is evident that the performance of Lowe's has lowered for 2007. Compared to the benchmark company, Home Depot the performance of Lowe's is considerably lower given that Home Depot is the largest and leading home improvement retailer as of date. Lowe's ROE indicates that the Lowe's shareholders are receiving less profit than last financial year. [...]
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