HOME DEPOT INC (1HD.MI) Stock Fundamental Analysis
Europe - BIT:1HD - US4370761029 - Common Stock
326.1 EUR
-5.5 (-1.66%)
Taking everything into account, 1HD scores 5 out of 10 in our fundamental rating. 1HD was compared to 49 industry peers in the Specialty Retail industry. While 1HD has a great profitability rating, there are some minor concerns on its financial health. 1HD is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1HD was profitable.
1HD had a positive operating cash flow in the past year.
In the past 5 years 1HD has always been profitable.
In the past 5 years 1HD always reported a positive cash flow from operatings.
1.2 Ratios
1HD's Return On Assets of 14.62% is amongst the best of the industry. 1HD outperforms 91.84% of its industry peers.
1HD's Return On Equity of 137.17% is amongst the best of the industry. 1HD outperforms 97.96% of its industry peers.
Looking at the Return On Invested Capital, with a value of 23.77%, 1HD belongs to the top of the industry, outperforming 93.88% of the companies in the same industry.
1HD had an Average Return On Invested Capital over the past 3 years of 29.60%. This is significantly above the industry average of 10.65%.
The last Return On Invested Capital (23.77%) for 1HD is well below the 3 year average (29.60%), which needs to be investigated, but indicates that 1HD had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.62% | ||
| ROE | 137.17% | ||
| ROIC | 23.77% |
ROA(3y)19.19%
ROA(5y)19.73%
ROE(3y)922.84%
ROE(5y)N/A
ROIC(3y)29.6%
ROIC(5y)32.3%
1.3 Margins
1HD has a better Profit Margin (8.86%) than 89.80% of its industry peers.
In the last couple of years the Profit Margin of 1HD has declined.
1HD's Operating Margin of 13.09% is amongst the best of the industry. 1HD outperforms 93.88% of its industry peers.
In the last couple of years the Operating Margin of 1HD has remained more or less at the same level.
With a Gross Margin value of 33.35%, 1HD perfoms like the industry average, outperforming 44.90% of the companies in the same industry.
In the last couple of years the Gross Margin of 1HD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.09% | ||
| PM (TTM) | 8.86% | ||
| GM | 33.35% |
OM growth 3Y-4.34%
OM growth 5Y-1.25%
PM growth 3Y-5.13%
PM growth 5Y-1.87%
GM growth 3Y-0.21%
GM growth 5Y-0.39%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1HD is creating value.
Compared to 1 year ago, 1HD has about the same amount of shares outstanding.
The number of shares outstanding for 1HD has been reduced compared to 5 years ago.
1HD has a better debt/assets ratio than last year.
2.2 Solvency
1HD has a debt to FCF ratio of 3.68. This is a good value and a sign of high solvency as 1HD would need 3.68 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.68, 1HD is doing good in the industry, outperforming 71.43% of the companies in the same industry.
A Debt/Equity ratio of 4.31 is on the high side and indicates that 1HD has dependencies on debt financing.
1HD's Debt to Equity ratio of 4.31 is on the low side compared to the rest of the industry. 1HD is outperformed by 91.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.31 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | N/A |
ROIC/WACC2.62
WACC9.06%
2.3 Liquidity
1HD has a Current Ratio of 1.15. This is a normal value and indicates that 1HD is financially healthy and should not expect problems in meeting its short term obligations.
1HD has a Current ratio (1.15) which is in line with its industry peers.
1HD has a Quick Ratio of 1.15. This is a bad value and indicates that 1HD is not financially healthy enough and could expect problems in meeting its short term obligations.
1HD has a worse Quick ratio (0.34) than 77.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
1HD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.47%.
1HD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.80% yearly.
Looking at the last year, 1HD shows a quite strong growth in Revenue. The Revenue has grown by 8.52% in the last year.
Measured over the past years, 1HD shows a small growth in Revenue. The Revenue has been growing by 7.67% on average per year.
EPS 1Y (TTM)0.47%
EPS 3Y-1.31%
EPS 5Y7.8%
EPS Q2Q%1.74%
Revenue 1Y (TTM)8.52%
Revenue growth 3Y1.81%
Revenue growth 5Y7.67%
Sales Q2Q%4.87%
3.2 Future
The Earnings Per Share is expected to grow by 7.05% on average over the next years.
Based on estimates for the next years, 1HD will show a small growth in Revenue. The Revenue will grow by 3.23% on average per year.
EPS Next Y3.59%
EPS Next 2Y6%
EPS Next 3Y6.97%
EPS Next 5Y7.05%
Revenue Next Year3.22%
Revenue Next 2Y3.79%
Revenue Next 3Y3.91%
Revenue Next 5Y3.23%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
1HD is valuated quite expensively with a Price/Earnings ratio of 25.28.
1HD's Price/Earnings ratio is a bit cheaper when compared to the industry. 1HD is cheaper than 63.27% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1HD to the average of the S&P500 Index (26.28), we can say 1HD is valued inline with the index average.
A Price/Forward Earnings ratio of 22.51 indicates a rather expensive valuation of 1HD.
1HD's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 33.61. 1HD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.28 | ||
| Fwd PE | 22.51 |
4.2 Price Multiples
63.27% of the companies in the same industry are cheaper than 1HD, based on the Enterprise Value to EBITDA ratio.
1HD's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.38 | ||
| EV/EBITDA | 16.6 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of 1HD may justify a higher PE ratio.
PEG (NY)7.04
PEG (5Y)3.24
EPS Next 2Y6%
EPS Next 3Y6.97%
5. Dividend
5.1 Amount
1HD has a Yearly Dividend Yield of 2.31%.
Compared to an average industry Dividend Yield of 3.44, 1HD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, 1HD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
5.2 History
On average, the dividend of 1HD grows each year by 10.50%, which is quite nice.
Dividend Growth(5Y)10.5%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
61.82% of the earnings are spent on dividend by 1HD. This is not a sustainable payout ratio.
The dividend of 1HD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP61.82%
EPS Next 2Y6%
EPS Next 3Y6.97%
BIT:1HD (11/3/2025, 7:00:00 PM)
326.1
-5.5 (-1.66%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners72.71%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap324.45B
Revenue(TTM)165.05B
Net Income(TTM)14.63B
Analysts78.8
Price Target381.3 (16.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
Yearly Dividend7.75
Dividend Growth(5Y)10.5%
DP61.82%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.71%
Min EPS beat(2)-3.87%
Max EPS beat(2)-3.55%
EPS beat(4)0
Avg EPS beat(4)-3.02%
Min EPS beat(4)-3.87%
Max EPS beat(4)-2.12%
EPS beat(8)0
Avg EPS beat(8)-2.19%
EPS beat(12)1
Avg EPS beat(12)-1.71%
EPS beat(16)3
Avg EPS beat(16)-0.21%
Revenue beat(2)0
Avg Revenue beat(2)-2.32%
Min Revenue beat(2)-3.08%
Max Revenue beat(2)-1.56%
Revenue beat(4)0
Avg Revenue beat(4)-1.73%
Min Revenue beat(4)-3.08%
Max Revenue beat(4)-0.7%
Revenue beat(8)0
Avg Revenue beat(8)-2.28%
Revenue beat(12)0
Avg Revenue beat(12)-2.42%
Revenue beat(16)2
Avg Revenue beat(16)-1.66%
PT rev (1m)-4.77%
PT rev (3m)-4.77%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)0.44%
EPS NY rev (1m)-0.41%
EPS NY rev (3m)-0.41%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.28 | ||
| Fwd PE | 22.51 | ||
| P/S | 2.27 | ||
| P/FCF | 26.38 | ||
| P/OCF | 21.01 | ||
| P/B | 35.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.6 |
EPS(TTM)12.9
EY3.96%
EPS(NY)14.49
Fwd EY4.44%
FCF(TTM)12.36
FCFY3.79%
OCF(TTM)15.52
OCFY4.76%
SpS143.37
BVpS9.26
TBVpS-15.4
PEG (NY)7.04
PEG (5Y)3.24
Graham Number51.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.62% | ||
| ROE | 137.17% | ||
| ROCE | 31.21% | ||
| ROIC | 23.77% | ||
| ROICexc | 24.77% | ||
| ROICexgc | 43.28% | ||
| OM | 13.09% | ||
| PM (TTM) | 8.86% | ||
| GM | 33.35% | ||
| FCFM | 8.62% |
ROA(3y)19.19%
ROA(5y)19.73%
ROE(3y)922.84%
ROE(5y)N/A
ROIC(3y)29.6%
ROIC(5y)32.3%
ROICexc(3y)31.18%
ROICexc(5y)34.99%
ROICexgc(3y)44.07%
ROICexgc(5y)47.45%
ROCE(3y)38.92%
ROCE(5y)42.7%
ROICexgc growth 3Y-8.8%
ROICexgc growth 5Y1.22%
ROICexc growth 3Y-16.36%
ROICexc growth 5Y-8.21%
OM growth 3Y-4.34%
OM growth 5Y-1.25%
PM growth 3Y-5.13%
PM growth 5Y-1.87%
GM growth 3Y-0.21%
GM growth 5Y-0.39%
F-Score5
Asset Turnover1.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.31 | ||
| Debt/FCF | 3.68 | ||
| Debt/EBITDA | 1.79 | ||
| Cap/Depr | 91% | ||
| Cap/Sales | 2.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.8% | ||
| Profit Quality | 97.27% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.34 | ||
| Altman-Z | N/A |
F-Score5
WACC9.06%
ROIC/WACC2.62
Cap/Depr(3y)98.95%
Cap/Depr(5y)96.86%
Cap/Sales(3y)2.09%
Cap/Sales(5y)1.97%
Profit Quality(3y)98.66%
Profit Quality(5y)101.7%
High Growth Momentum
Growth
EPS 1Y (TTM)0.47%
EPS 3Y-1.31%
EPS 5Y7.8%
EPS Q2Q%1.74%
EPS Next Y3.59%
EPS Next 2Y6%
EPS Next 3Y6.97%
EPS Next 5Y7.05%
Revenue 1Y (TTM)8.52%
Revenue growth 3Y1.81%
Revenue growth 5Y7.67%
Sales Q2Q%4.87%
Revenue Next Year3.22%
Revenue Next 2Y3.79%
Revenue Next 3Y3.91%
Revenue Next 5Y3.23%
EBIT growth 1Y2.07%
EBIT growth 3Y-2.61%
EBIT growth 5Y6.32%
EBIT Next Year15.93%
EBIT Next 3Y9.55%
EBIT Next 5Y6.28%
FCF growth 1Y-12.53%
FCF growth 3Y5.24%
FCF growth 5Y8.2%
OCF growth 1Y-8.99%
OCF growth 3Y6.13%
OCF growth 5Y7.68%
HOME DEPOT INC / 1HD.MI FAQ
What is the fundamental rating for 1HD stock?
ChartMill assigns a fundamental rating of 5 / 10 to 1HD.MI.
What is the valuation status for 1HD stock?
ChartMill assigns a valuation rating of 3 / 10 to HOME DEPOT INC (1HD.MI). This can be considered as Overvalued.
How profitable is HOME DEPOT INC (1HD.MI) stock?
HOME DEPOT INC (1HD.MI) has a profitability rating of 8 / 10.
What is the valuation of HOME DEPOT INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for HOME DEPOT INC (1HD.MI) is 25.28 and the Price/Book (PB) ratio is 35.2.
How sustainable is the dividend of HOME DEPOT INC (1HD.MI) stock?
The dividend rating of HOME DEPOT INC (1HD.MI) is 4 / 10 and the dividend payout ratio is 61.82%.