Lowe's Cos. (LOW) 10-K Red Flags
Risk signals extracted deterministically from Lowe's Cos.’s SEC 10-K/10-Q XBRL filings — no LLM, every finding cites the underlying data.
Detected red flags (19)
- Earnings-cash flow divergence: Net income grew +20.0% while operating cash flow declined -5.2%. This divergence may indicate accrual-based earnings inflation — non-cash gains, aggressive revenue recognition, or working capital absorption. The accrual ratio (NI − OCF) is deteriorating.
- NEW: Going concern doubt in latest filing: The term "going concern" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 8 filing(s).
- Material weakness in internal controls: The term "material weakness" appears in 20 recent filing(s) (vs 2 in the prior period). This risk language is ongoing.
- Restatement of financial statements: The term "restate" "financial statements" appears in 16 recent filing(s) (vs 1 in the prior period). This risk language is ongoing.
- Deferred revenue growing — future revenue visibility: Deferred revenue grew +16.2% to $1.25B, providing forward revenue visibility. This is a positive leading indicator for subscription or contract-based businesses.
- NEW: Impairment charge: Impairment charge appears in recent filings but not in the prior 24-month period. Monitor for materiality.
- Endogenous analysis: "Material weakness in internal controls" combined with earnings-cash flow divergence is especially concerning — it suggests the reported earnings may not be reliable due to control deficiencies, and the cash flow shortfall may be masking underlying issues.
- 2 new XBRL disclosure(s) in latest filing — expanding reporting scope.
- 20 disclosure(s) dropped from prior year — reduced reporting granularity.
- 3 new risk-language term(s) detected in filing text: Going concern doubt, Impairment charge, Off-balance sheet arrangements.
- Ongoing high-severity risk language: Material weakness in internal controls, Restatement of financial statements.
- Revenue declined **+11.0%** YoY to $86.38B.
- Net margin at **8.94%** (expanding ▲).
- Market cap $127.56B at $227.50 per share.
- Trailing P/E 17.23, P/S 1.48.
- Composite risk: Moderate.
- Leverage debt/equity -4.30 (low).
- Earnings-cash flow divergence: Net income grew +20.0% while operating cash flow declined -5.2%. This divergence may indicate accrual-based earnings inflation — non-cash gains, aggressive revenue recognition, or working capital absorption. The accrual ratio (NI − OCF) is deteriorating.
- NEW: Going concern doubt in latest filing: The term "going concern" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 8 filing(s).
Filings & ownership
- Latest annual report (10-K) filed Mar 23, 2026.
- Latest quarterly report (10-Q) filed May 28, 2026.
- 11 recent 8-K material-event filings in the index.
- Recent insider Form 4s: 0 buy vs 0 sell transactions.
- ~8257 recent 13F-HR filings reference Lowe's Cos.; broad institutional reporting.
- Recent filers include VINIK ASSET MANAGEMENT L P, Orbitronix LP, NOMININGUE ASSET MANAGEMENT LLC.
- 13 recent 13G passive institutional ownership notices.
Full LOW analyst report
Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.
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