Pershing Square Activist Presentation Deck
Lowe's ("LOW")
LOWE'S
Lowe's is a high-quality business with significant long-term earnings
growth potential
Supportive macroeconomic backdrop
Aging housing stock, lack of new inventory, robust home equity values, and
unprecedented pro project backlog
ā COVID-19 causing millennials to enter the housing market
Positioned to grow EPS largely independent of market conditions
Idiosyncratic revenue opportunities driving share gains
Self-help initiatives catalyzing operating margin expansion
Buybacks representing ~8% of current market capitalization planned for 2022
Multi-year business transformation with substantial earnings upside
Margin target of 13% has substantial upside; Home Depot at ~15.3% and increasing
Potential to generate high-teens EPS growth over the next several years
Lowe's continues to trade at a significantly discounted P/E multiple relative to Home Depot
despite materially higher prospective EPS growth
Source: Company filings.
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