HOME DEPOT INC (1HD.MI) Fundamental Analysis & Valuation
BIT:1HD • US4370761029
Current stock price
325.3 EUR
+37.7 (+13.11%)
Last:
This 1HD.MI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. 1HD.MI Profitability Analysis
1.1 Basic Checks
- 1HD had positive earnings in the past year.
- In the past year 1HD had a positive cash flow from operations.
- 1HD had positive earnings in each of the past 5 years.
- Each year in the past 5 years 1HD had a positive operating cash flow.
1.2 Ratios
- 1HD's Return On Assets of 13.72% is amongst the best of the industry. 1HD outperforms 91.23% of its industry peers.
- 1HD has a Return On Equity of 120.35%. This is amongst the best in the industry. 1HD outperforms 96.49% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 21.84%, 1HD belongs to the top of the industry, outperforming 91.23% 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 8.87%.
- The last Return On Invested Capital (21.84%) 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 | 13.72% | ||
| ROE | 120.35% | ||
| ROIC | 21.84% |
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 Profit Margin of 8.77%. This is amongst the best in the industry. 1HD outperforms 89.47% of its industry peers.
- In the last couple of years the Profit Margin of 1HD has declined.
- 1HD's Operating Margin of 12.96% is amongst the best of the industry. 1HD outperforms 92.98% 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 33.36%, 1HD perfoms like the industry average, outperforming 43.86% of the companies in the same industry.
- 1HD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.96% | ||
| PM (TTM) | 8.77% | ||
| GM | 33.36% |
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. 1HD.MI Health Analysis
2.1 Basic Checks
- 1HD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, 1HD has more 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 4.02. This is a neutral value as 1HD would need 4.02 years to pay back of all of its debts.
- 1HD has a better Debt to FCF ratio (4.02) than 64.91% of its industry peers.
- A Debt/Equity ratio of 4.09 is on the high side and indicates that 1HD has dependencies on debt financing.
- 1HD's Debt to Equity ratio of 4.09 is on the low side compared to the rest of the industry. 1HD is outperformed by 85.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.09 | ||
| Debt/FCF | 4.02 | ||
| Altman-Z | N/A |
ROIC/WACC2.32
WACC9.42%
2.3 Liquidity
- A Current Ratio of 1.05 indicates that 1HD should not have too much problems paying its short term obligations.
- 1HD has a Current ratio of 1.05. This is in the lower half of the industry: 1HD underperforms 64.91% of its industry peers.
- 1HD has a Quick Ratio of 1.05. 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 (0.29) than 82.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.29 |
3. 1HD.MI Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 1.90% over the past year.
- 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 small growth in Revenue. The Revenue has grown by 7.50% 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)1.9%
EPS 3Y-1.31%
EPS 5Y7.8%
EPS Q2Q%1.91%
Revenue 1Y (TTM)7.5%
Revenue growth 3Y1.81%
Revenue growth 5Y7.67%
Sales Q2Q%2.82%
3.2 Future
- The Earnings Per Share is expected to grow by 6.01% 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 3.78% on average per year.
EPS Next Y0.14%
EPS Next 2Y2.03%
EPS Next 3Y4.29%
EPS Next 5Y6.01%
Revenue Next Year3.7%
Revenue Next 2Y3.84%
Revenue Next 3Y4.02%
Revenue Next 5Y3.78%
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 decreasing.
- 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. 1HD.MI Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 25.86, 1HD can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, 1HD is valued a bit cheaper than 63.16% of the companies in the same industry.
- When comparing the Price/Earnings ratio of 1HD to the average of the S&P500 Index (26.21), we can say 1HD is valued inline with the index average.
- 1HD is valuated rather expensively with a Price/Forward Earnings ratio of 24.96.
- 1HD's Price/Forward Earnings ratio is in line with the industry average.
- 1HD is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.86 | ||
| Fwd PE | 24.96 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1HD is valued a bit more expensive than the industry average as 61.40% of the companies are valued more cheaply.
- 1HD's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.71 | ||
| EV/EBITDA | 17.08 |
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)180.06
PEG (5Y)3.32
EPS Next 2Y2.03%
EPS Next 3Y4.29%
5. 1HD.MI Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 2.47%, 1HD has a reasonable but not impressive dividend return.
- 1HD's Dividend Yield is a higher than the industry average which is at 1.41.
- Compared to an average S&P500 Dividend Yield of 1.89, 1HD pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
5.2 History
- The dividend of 1HD is nicely growing with an annual growth rate of 10.49%!
Dividend Growth(5Y)10.49%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 62.39% 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.
DP62.39%
EPS Next 2Y2.03%
EPS Next 3Y4.29%
1HD.MI Fundamentals: All Metrics, Ratios and Statistics
BIT:1HD (1/19/2026, 7:00:00 PM)
325.3
+37.7 (+13.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)11-18 2025-11-18/bmo
Earnings (Next)05-18 2026-05-18
Inst Owners74.02%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap323.84B
Revenue(TTM)166.19B
Net Income(TTM)14.58B
Analysts76.52
Price Target345.3 (6.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
Yearly Dividend7.54
Dividend Growth(5Y)10.49%
DP62.39%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.48%
Min EPS beat(2)-5.4%
Max EPS beat(2)-3.55%
EPS beat(4)0
Avg EPS beat(4)-3.84%
Min EPS beat(4)-5.4%
Max EPS beat(4)-2.55%
EPS beat(8)0
Avg EPS beat(8)-2.65%
EPS beat(12)1
Avg EPS beat(12)-2.15%
EPS beat(16)2
Avg EPS beat(16)-1.29%
Revenue beat(2)0
Avg Revenue beat(2)-2.7%
Min Revenue beat(2)-3.08%
Max Revenue beat(2)-2.32%
Revenue beat(4)0
Avg Revenue beat(4)-2.13%
Min Revenue beat(4)-3.08%
Max Revenue beat(4)-1.55%
Revenue beat(8)0
Avg Revenue beat(8)-2.24%
Revenue beat(12)0
Avg Revenue beat(12)-2.56%
Revenue beat(16)1
Avg Revenue beat(16)-1.93%
PT rev (1m)-2.1%
PT rev (3m)-9.44%
EPS NQ rev (1m)0.34%
EPS NQ rev (3m)-11.86%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-3.33%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.86 | ||
| Fwd PE | 24.96 | ||
| P/S | 2.32 | ||
| P/FCF | 27.71 | ||
| P/OCF | 21.87 | ||
| P/B | 31.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.08 |
EPS(TTM)12.58
EY3.87%
EPS(NY)13.03
Fwd EY4.01%
FCF(TTM)11.74
FCFY3.61%
OCF(TTM)14.87
OCFY4.57%
SpS140.06
BVpS10.21
TBVpS-17.33
PEG (NY)180.06
PEG (5Y)3.32
Graham Number53.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.72% | ||
| ROE | 120.35% | ||
| ROCE | 29.95% | ||
| ROIC | 21.84% | ||
| ROICexc | 22.34% | ||
| ROICexgc | 40.25% | ||
| OM | 12.96% | ||
| PM (TTM) | 8.77% | ||
| GM | 33.36% | ||
| FCFM | 8.38% |
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-Score4
Asset Turnover1.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.09 | ||
| Debt/FCF | 4.02 | ||
| Debt/EBITDA | 1.94 | ||
| Cap/Depr | 91.88% | ||
| Cap/Sales | 2.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.98% | ||
| Profit Quality | 95.51% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | N/A |
F-Score4
WACC9.42%
ROIC/WACC2.32
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)1.9%
EPS 3Y-1.31%
EPS 5Y7.8%
EPS Q2Q%1.91%
EPS Next Y0.14%
EPS Next 2Y2.03%
EPS Next 3Y4.29%
EPS Next 5Y6.01%
Revenue 1Y (TTM)7.5%
Revenue growth 3Y1.81%
Revenue growth 5Y7.67%
Sales Q2Q%2.82%
Revenue Next Year3.7%
Revenue Next 2Y3.84%
Revenue Next 3Y4.02%
Revenue Next 5Y3.78%
EBIT growth 1Y1.71%
EBIT growth 3Y-2.61%
EBIT growth 5Y6.32%
EBIT Next Year13.83%
EBIT Next 3Y7.6%
EBIT Next 5Y6.03%
FCF growth 1Y-21.59%
FCF growth 3Y5.24%
FCF growth 5Y8.2%
OCF growth 1Y-16.09%
OCF growth 3Y6.13%
OCF growth 5Y7.68%
HOME DEPOT INC / 1HD.MI Fundamental Analysis 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 of HOME DEPOT INC (1HD.MI) stock?
ChartMill assigns a valuation rating of 3 / 10 to HOME DEPOT INC (1HD.MI). This can be considered as Overvalued.
Can you provide the profitability details for HOME DEPOT INC?
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 25.86 and the Price/Book (PB) ratio is 31.86.
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 62.39%.