Home Depot CDR (HD.CA) Fundamental Analysis & Valuation
TSX:HD
22.37 CAD
-0.29 (-1.28%)
Last: Mar 6, 2026, 07:00 PM
This HD.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Taking everything into account, HD scores 5 out of 10 in our fundamental rating. HD was compared to 18 industry peers in the Specialty Retail industry. While HD has a great profitability rating, there are quite some concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on HD.
1. HD.CA Profitability Analysis
1.1 Basic Checks
- HD had positive earnings in the past year.
- In the past year HD had a positive cash flow from operations.
- Each year in the past 5 years HD has been profitable.
- Each year in the past 5 years HD had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 13.47%, HD belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- HD has a better Return On Equity (110.48%) than 94.44% of its industry peers.
- With an excellent Return On Invested Capital value of 20.64%, HD belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
- HD had an Average Return On Invested Capital over the past 3 years of 25.05%. This is significantly above the industry average of 11.22%.
- The 3 year average ROIC (25.05%) for HD is well above the current ROIC(20.64%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.47% | ||
| ROE | 110.48% | ||
| ROIC | 20.64% |
ROA(3y)16.22%
ROA(5y)18.78%
ROE(3y)594.65%
ROE(5y)N/A
ROIC(3y)25.05%
ROIC(5y)29.93%
1.3 Margins
- HD has a better Profit Margin (8.60%) than 66.67% of its industry peers.
- HD's Profit Margin has declined in the last couple of years.
- HD's Operating Margin of 12.68% is fine compared to the rest of the industry. HD outperforms 66.67% of its industry peers.
- In the last couple of years the Operating Margin of HD has declined.
- HD's Gross Margin of 33.32% is on the low side compared to the rest of the industry. HD is outperformed by 61.11% of its industry peers.
- HD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.68% | ||
| PM (TTM) | 8.6% | ||
| GM | 33.32% |
OM growth 3Y-6%
OM growth 5Y-3.74%
PM growth 3Y-7.52%
PM growth 5Y-2.47%
GM growth 3Y-0.21%
GM growth 5Y-0.38%
2. HD.CA Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HD is creating value.
- The number of shares outstanding for HD remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, HD has less shares outstanding
- The debt/assets ratio for HD has been reduced compared to a year ago.
2.2 Solvency
- HD has a debt to FCF ratio of 4.41. This is a neutral value as HD would need 4.41 years to pay back of all of its debts.
- HD has a better Debt to FCF ratio (4.41) than 72.22% of its industry peers.
- A Debt/Equity ratio of 3.97 is on the high side and indicates that HD has dependencies on debt financing.
- HD has a worse Debt to Equity ratio (3.97) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.97 | ||
| Debt/FCF | 4.41 | ||
| Altman-Z | N/A |
ROIC/WACC2.84
WACC7.27%
2.3 Liquidity
- HD has a Current Ratio of 1.06. This is a normal value and indicates that HD is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.06, HD is doing worse than 77.78% of the companies in the same industry.
- A Quick Ratio of 0.26 indicates that HD may have some problems paying its short term obligations.
- With a Quick ratio value of 0.26, HD is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.26 |
3. HD.CA Growth Analysis
3.1 Past
- The earnings per share for HD have decreased by -4.56% in the last year.
- HD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.57% yearly.
- Looking at the last year, HD shows a small growth in Revenue. The Revenue has grown by 3.24% in the last year.
- Measured over the past years, HD shows a small growth in Revenue. The Revenue has been growing by 4.51% on average per year.
EPS 1Y (TTM)-4.56%
EPS 3Y-5.18%
EPS 5Y3.57%
EPS Q2Q%-14.29%
Revenue 1Y (TTM)3.24%
Revenue growth 3Y1.52%
Revenue growth 5Y4.51%
Sales Q2Q%-3.79%
3.2 Future
- Based on estimates for the next years, HD will show a small growth in Earnings Per Share. The EPS will grow by 7.60% on average per year.
- Based on estimates for the next years, HD will show a small growth in Revenue. The Revenue will grow by 3.82% on average per year.
EPS Next Y3.9%
EPS Next 2Y6.42%
EPS Next 3Y6.93%
EPS Next 5Y7.6%
Revenue Next Year3.96%
Revenue Next 2Y4.18%
Revenue Next 3Y4.24%
Revenue Next 5Y3.82%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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 stable.
4. HD.CA Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 1.15, the valuation of HD can be described as very cheap.
- Based on the Price/Earnings ratio, HD is valued cheaper than 100.00% of the companies in the same industry.
- When comparing the Price/Earnings ratio of HD to the average of the S&P500 Index (26.29), we can say HD is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 1.06, the valuation of HD can be described as very cheap.
- HD's Price/Forward Earnings ratio is rather cheap when compared to the industry. HD is cheaper than 100.00% of the companies in the same industry.
- HD is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.15 | ||
| Fwd PE | 1.06 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HD is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HD indicates a rather cheap valuation: HD is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.29 | ||
| EV/EBITDA | 2.66 |
4.3 Compensation for Growth
- HD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- HD has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.3
PEG (5Y)0.32
EPS Next 2Y6.42%
EPS Next 3Y6.93%
5. HD.CA Dividend Analysis
5.1 Amount
- HD has a Yearly Dividend Yield of 2.58%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.52, HD pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, HD pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
5.2 History
- On average, the dividend of HD grows each year by 8.96%, which is quite nice.
- HD does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)8.96%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 64.65% of the earnings are spent on dividend by HD. This is not a sustainable payout ratio.
- The dividend of HD is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP64.65%
EPS Next 2Y6.42%
EPS Next 3Y6.93%
HD.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:HD (3/6/2026, 7:00:00 PM)
22.37
-0.29 (-1.28%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)02-24 2026-02-24/bmo
Earnings (Next)05-18 2026-05-18
Inst Owners74.44%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap22.27B
Revenue(TTM)164.68B
Net Income(TTM)14.16B
Analysts75.65
Price Target25.43 (13.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
Yearly Dividend12.56
Dividend Growth(5Y)8.96%
DP64.65%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.52%
Min Revenue beat(2)-2.71%
Max Revenue beat(2)-2.32%
Revenue beat(4)0
Avg Revenue beat(4)-2.42%
Min Revenue beat(4)-3.08%
Max Revenue beat(4)-1.56%
Revenue beat(8)0
Avg Revenue beat(8)-2.27%
Revenue beat(12)0
Avg Revenue beat(12)-2.51%
Revenue beat(16)1
Avg Revenue beat(16)-2.07%
PT rev (1m)0.85%
PT rev (3m)N/A
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.15 | ||
| Fwd PE | 1.06 | ||
| P/S | 0.1 | ||
| P/FCF | 1.29 | ||
| P/OCF | 1 | ||
| P/B | 1.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.66 |
EPS(TTM)19.39
EY86.68%
EPS(NY)21.16
Fwd EY94.6%
FCF(TTM)17.31
FCFY77.36%
OCF(TTM)22.34
OCFY99.87%
SpS225.37
BVpS17.53
TBVpS-27.18
PEG (NY)0.3
PEG (5Y)0.32
Graham Number87.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.47% | ||
| ROE | 110.48% | ||
| ROCE | 28.75% | ||
| ROIC | 20.64% | ||
| ROICexc | 21.01% | ||
| ROICexgc | 36.96% | ||
| OM | 12.68% | ||
| PM (TTM) | 8.6% | ||
| GM | 33.32% | ||
| FCFM | 7.68% |
ROA(3y)16.22%
ROA(5y)18.78%
ROE(3y)594.65%
ROE(5y)N/A
ROIC(3y)25.05%
ROIC(5y)29.93%
ROICexc(3y)26.13%
ROICexc(5y)31.4%
ROICexgc(3y)41.07%
ROICexgc(5y)45.33%
ROCE(3y)33.48%
ROCE(5y)39.89%
ROICexgc growth 3Y-7.04%
ROICexgc growth 5Y-4.98%
ROICexc growth 3Y-16.59%
ROICexc growth 5Y-11.68%
OM growth 3Y-6%
OM growth 5Y-3.74%
PM growth 3Y-7.52%
PM growth 5Y-2.47%
GM growth 3Y-0.21%
GM growth 5Y-0.38%
F-Score4
Asset Turnover1.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.97 | ||
| Debt/FCF | 4.41 | ||
| Debt/EBITDA | 2.03 | ||
| Cap/Depr | 89.27% | ||
| Cap/Sales | 2.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.27% | ||
| Profit Quality | 89.33% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.26 | ||
| Altman-Z | N/A |
F-Score4
WACC7.27%
ROIC/WACC2.84
Cap/Depr(3y)93.76%
Cap/Depr(5y)95.16%
Cap/Sales(3y)2.18%
Cap/Sales(5y)2.04%
Profit Quality(3y)106.03%
Profit Quality(5y)94.11%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.56%
EPS 3Y-5.18%
EPS 5Y3.57%
EPS Q2Q%-14.29%
EPS Next Y3.9%
EPS Next 2Y6.42%
EPS Next 3Y6.93%
EPS Next 5Y7.6%
Revenue 1Y (TTM)3.24%
Revenue growth 3Y1.52%
Revenue growth 5Y4.51%
Sales Q2Q%-3.79%
Revenue Next Year3.96%
Revenue Next 2Y4.18%
Revenue Next 3Y4.24%
Revenue Next 5Y3.82%
EBIT growth 1Y-2.95%
EBIT growth 3Y-4.57%
EBIT growth 5Y0.6%
EBIT Next Year19.72%
EBIT Next 3Y10.34%
EBIT Next 5Y7.49%
FCF growth 1Y-22.54%
FCF growth 3Y3.23%
FCF growth 5Y-5.04%
OCF growth 1Y-17.59%
OCF growth 3Y3.76%
OCF growth 5Y-2.82%
Home Depot CDR / HD.CA FAQ
What is the ChartMill fundamental rating of Home Depot CDR (HD.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to HD.CA.
What is the valuation status for HD stock?
ChartMill assigns a valuation rating of 9 / 10 to Home Depot CDR (HD.CA). This can be considered as Undervalued.
How profitable is Home Depot CDR (HD.CA) stock?
Home Depot CDR (HD.CA) has a profitability rating of 7 / 10.
What is the valuation of Home Depot CDR based on its PE and PB ratios?
The Price/Earnings (PE) ratio for Home Depot CDR (HD.CA) is 1.15 and the Price/Book (PB) ratio is 1.28.
Is the dividend of Home Depot CDR sustainable?
The dividend rating of Home Depot CDR (HD.CA) is 3 / 10 and the dividend payout ratio is 64.65%.