Home Depot CDR (HD.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:HD
23.9 CAD
-0.34 (-1.4%)
Last: Feb 5, 2026, 07:00 PM
We assign a fundamental rating of 5 out of 10 to HD. HD was compared to 18 industry peers in the Specialty Retail industry. While HD belongs to the best of the industry regarding profitability, there are concerns on its financial health. HD is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year HD was profitable.
- HD had a positive operating cash flow in the past year.
- HD had positive earnings in each of the past 5 years.
- Each year in the past 5 years HD had a positive operating cash flow.
1.2 Ratios
- HD's Return On Assets of 13.72% is amongst the best of the industry. HD outperforms 83.33% of its industry peers.
- HD has a Return On Equity of 120.35%. This is amongst the best in the industry. HD outperforms 94.44% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 21.84%, HD belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for HD is significantly above the industry average of 11.04%.
- The last Return On Invested Capital (21.84%) for HD is well below the 3 year average (29.60%), which needs to be investigated, but indicates that HD 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
- HD has a Profit Margin of 8.77%. This is in the better half of the industry: HD outperforms 72.22% of its industry peers.
- HD's Profit Margin has declined in the last couple of years.
- The Operating Margin of HD (12.96%) is better than 72.22% of its industry peers.
- In the last couple of years the Operating Margin of HD has remained more or less at the same level.
- HD has a Gross Margin of 33.36%. This is comparable to the rest of the industry: HD outperforms 44.44% of its industry peers.
- HD'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. Health
2.1 Basic Checks
- HD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- HD has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for HD has been reduced compared to 5 years ago.
- Compared to 1 year ago, HD has an improved debt to assets ratio.
2.2 Solvency
- The Debt to FCF ratio of HD is 4.02, which is a neutral value as it means it would take HD, 4.02 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 4.02, HD is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
- A Debt/Equity ratio of 4.09 is on the high side and indicates that HD has dependencies on debt financing.
- HD's Debt to Equity ratio of 4.09 is on the low side compared to the rest of the industry. HD is outperformed by 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.09 | ||
| Debt/FCF | 4.02 | ||
| Altman-Z | N/A |
ROIC/WACC2.91
WACC7.5%
2.3 Liquidity
- A Current Ratio of 1.05 indicates that HD should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.05, HD is doing worse than 77.78% of the companies in the same industry.
- HD has a Quick Ratio of 1.05. This is a bad value and indicates that HD is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.29, 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 | 1.05 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
- HD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.90%.
- The Earnings Per Share has been growing slightly by 7.80% on average over the past years.
- HD shows a small growth in Revenue. In the last year, the Revenue has grown by 7.50%.
- Measured over the past years, HD 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
- HD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.01% yearly.
- HD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.78% yearly.
EPS Next Y0.2%
EPS Next 2Y2.03%
EPS Next 3Y4.31%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 1.17, which indicates a rather cheap valuation of HD.
- 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 (28.06), we can say HD is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 1.13, the valuation of HD can be described as very cheap.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HD indicates a rather cheap valuation: HD is cheaper than 100.00% of the companies listed in the same industry.
- HD is valuated cheaply when we compare the Price/Forward Earnings ratio to 27.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.17 | ||
| Fwd PE | 1.13 |
4.2 Price Multiples
- HD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HD is cheaper than 83.33% of the companies in the same industry.
- HD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HD is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.25 | ||
| EV/EBITDA | 2.68 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HD does not grow enough to justify the current Price/Earnings ratio.
- HD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.74
PEG (5Y)0.15
EPS Next 2Y2.03%
EPS Next 3Y4.31%
5. Dividend
5.1 Amount
- HD has a Yearly Dividend Yield of 2.41%.
- HD's Dividend Yield is a higher than the industry average which is at 1.61.
- HD's Dividend Yield is a higher than the S&P500 average which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
- On average, the dividend of HD grows each year by 10.49%, which is quite nice.
- HD is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)10.49%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 62.39% of the earnings are spent on dividend by HD. This is not a sustainable payout ratio.
- HD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP62.39%
EPS Next 2Y2.03%
EPS Next 3Y4.31%
TSX:HD (2/5/2026, 7:00:00 PM)
23.9
-0.34 (-1.4%)
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 Cap23.79B
Revenue(TTM)166.19B
Net Income(TTM)14.58B
Analysts76.52
Price Target25.34 (6.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Yearly Dividend12.29
Dividend Growth(5Y)10.49%
DP62.39%
Div Incr YearsN/A
Div Non Decr YearsN/A
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)N/A
PT rev (3m)N/A
EPS NQ rev (1m)0.46%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.06%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.17 | ||
| Fwd PE | 1.13 | ||
| P/S | 0.1 | ||
| P/FCF | 1.25 | ||
| P/OCF | 0.99 | ||
| P/B | 1.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.68 |
EPS(TTM)20.5
EY85.77%
EPS(NY)21.23
Fwd EY88.82%
FCF(TTM)19.12
FCFY80%
OCF(TTM)24.23
OCFY101.37%
SpS228.14
BVpS16.63
TBVpS-28.23
PEG (NY)5.74
PEG (5Y)0.15
Graham Number87.59
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
WACC7.5%
ROIC/WACC2.91
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 Y0.2%
EPS Next 2Y2.03%
EPS Next 3Y4.31%
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 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 8 / 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 8 / 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 1.17 and the Price/Book (PB) ratio is 1.44.
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 62.39%.