HOME DEPOT INC (1HD.MI) Stock Fundamental Analysis
BIT:1HD - US4370761029 - Common Stock
331.6 EUR
+8.55 (+2.65%)
We assign a fundamental rating of 5 out of 10 to 1HD. 1HD was compared to 51 industry peers in the Specialty Retail industry. 1HD has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, 1HD is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year 1HD was profitable.
In the past year 1HD had a positive cash flow from operations.
In the past 5 years 1HD has always been profitable.
Each year in the past 5 years 1HD had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.62%, 1HD belongs to the top of the industry, outperforming 94.34% of the companies in the same industry.
1HD's Return On Equity of 137.17% is amongst the best of the industry. 1HD outperforms 100.00% of its industry peers.
1HD's Return On Invested Capital of 23.77% is amongst the best of the industry. 1HD outperforms 96.23% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1HD is significantly above the industry average of 8.49%.
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 Profit Margin of 8.86%. This is amongst the best in the industry. 1HD outperforms 92.45% of its industry peers.
In the last couple of years the Profit Margin of 1HD has declined.
With an excellent Operating Margin value of 13.09%, 1HD belongs to the best of the industry, outperforming 92.45% of the companies in the same industry.
1HD's Operating Margin has been stable in the last couple of years.
1HD has a Gross Margin (33.35%) which is comparable to the rest of the industry.
1HD's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1HD is creating value.
The number of shares outstanding for 1HD remains at a similar level compared to 1 year ago.
1HD has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1HD has an improved debt to assets ratio.
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.
1HD's Debt to FCF ratio of 3.68 is fine compared to the rest of the industry. 1HD outperforms 75.47% of its industry peers.
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 88.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.31 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | N/A |
ROIC/WACC2.59
WACC9.16%
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.
With a Current ratio value of 1.15, 1HD perfoms like the industry average, outperforming 45.28% of the companies in the same industry.
A Quick Ratio of 0.34 indicates that 1HD may have some problems paying its short term obligations.
1HD has a worse Quick ratio (0.34) than 75.47% 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%.
The Earnings Per Share has been growing slightly by 7.80% on average over the past years.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 25.79.
64.15% of the companies in the same industry are more expensive than 1HD, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of 1HD to the average of the S&P500 Index (26.84), we can say 1HD is valued inline with the index average.
1HD is valuated rather expensively with a Price/Forward Earnings ratio of 22.96.
1HD's Price/Forward Earnings is on the same level as the industry average.
1HD is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.48, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.79 | ||
| Fwd PE | 22.96 |
4.2 Price Multiples
1HD's Enterprise Value to EBITDA is on the same level as the industry average.
1HD's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.91 | ||
| EV/EBITDA | 16.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1HD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)7.18
PEG (5Y)3.31
EPS Next 2Y6%
EPS Next 3Y6.97%
5. Dividend
5.1 Amount
1HD has a Yearly Dividend Yield of 2.31%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.32, 1HD pays a better dividend. On top of this 1HD pays more dividend than 81.13% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, 1HD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
5.2 History
The dividend of 1HD is nicely growing with an annual growth rate of 10.50%!
Dividend Growth(5Y)10.5%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1HD pays out 61.82% of its income as dividend. 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 (8/11/2025, 7:00:00 PM)
331.6
+8.55 (+2.65%)
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 Cap329.92B
Analysts78.8
Price Target381.3 (14.99%)
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 | 25.79 | ||
| Fwd PE | 22.96 | ||
| P/S | 2.32 | ||
| P/FCF | 26.91 | ||
| P/OCF | 21.43 | ||
| P/B | 35.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.89 |
EPS(TTM)12.86
EY3.88%
EPS(NY)14.44
Fwd EY4.36%
FCF(TTM)12.32
FCFY3.72%
OCF(TTM)15.47
OCFY4.67%
SpS142.91
BVpS9.23
TBVpS-15.35
PEG (NY)7.18
PEG (5Y)3.31
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%
ROICexcg growth 3Y-8.8%
ROICexcg 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
WACC9.16%
ROIC/WACC2.59
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%