Should you consider HOME DEPOT INC (NYSE:HD) for quality investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if HOME DEPOT INC (NYSE:HD) is suited for quality investing. Investors should of couse do their own research, but we spotted HOME DEPOT INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Why NYSE:HD may be interesting for quality investors.

• Over the past 5 years, HOME DEPOT INC has experienced impressive revenue growth, with 9.3% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• HOME DEPOT INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 41.93% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• HOME DEPOT INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 2.59, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• With a robust Profit Quality (5-year) ratio of 94.81%, HOME DEPOT INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• HOME DEPOT INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 10.37%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• The EBIT 5-year growth of HOME DEPOT INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

How does the complete fundamental picture look for NYSE:HD?

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to HD. HD was compared to 134 industry peers in the Specialty Retail industry. HD has an excellent profitability rating, but there are some minor concerns on its financial health. HD has a decent growth rate and is not valued too expensively.

For an up to date full fundamental analysis you can check the fundamental report of HD

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.