Why Are Investors Discounting The High Cash Yield On Lowe's Stock?

Shares of Lowe's Companies (LOW) sit about 37% below their February 2026 high. That decline has lifted the retailer's cash yield. Free cash flow equals 7.0% of the company's market value as of October 6, 2026, compared with 4.5% for the median S&P 500 company. This gap suggests one of two scenarios: either the stock is a bargain, or the market expects Lowe's to generate less cash going forward. So why are investors paying so little for the cash Lowe's produces.