HOME DEPOT INC (HD) Fundamental Analysis & Valuation
NYSE:HD • US4370761029
Current stock price
331.385 USD
+0.49 (+0.15%)
Last:
This HD fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. HD Profitability Analysis
1.1 Basic Checks
- In the past year HD was profitable.
- In the past year HD had a positive cash flow from operations.
- In the past 5 years HD has always been profitable.
- Each year in the past 5 years HD had a positive operating cash flow.
1.2 Ratios
- HD's Return On Assets of 13.47% is amongst the best of the industry. HD outperforms 91.06% of its industry peers.
- HD's Return On Equity of 110.48% is amongst the best of the industry. HD outperforms 99.19% of its industry peers.
- HD's Return On Invested Capital of 20.64% is amongst the best of the industry. HD outperforms 89.43% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for HD is significantly above the industry average of 13.21%.
- 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 86.99% of its industry peers.
- HD's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 12.68%, HD belongs to the best of the industry, outperforming 89.43% of the companies in the same industry.
- In the last couple of years the Operating Margin of HD has declined.
- Looking at the Gross Margin, with a value of 33.32%, HD is in line with its industry, outperforming 42.28% of the companies in the same industry.
- 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 Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HD is creating value.
- Compared to 1 year ago, HD has about the same amount of shares outstanding.
- Compared to 5 years ago, HD has less shares outstanding
- Compared to 1 year ago, HD has an improved debt to assets ratio.
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.
- The Debt to FCF ratio of HD (4.41) is better than 67.48% 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 Debt to Equity ratio of 3.97. This is in the lower half of the industry: HD underperforms 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.97 | ||
| Debt/FCF | 4.41 | ||
| Altman-Z | N/A |
ROIC/WACC2.49
WACC8.29%
2.3 Liquidity
- A Current Ratio of 1.06 indicates that HD should not have too much problems paying its short term obligations.
- HD's Current ratio of 1.06 is on the low side compared to the rest of the industry. HD is outperformed by 70.73% of its industry peers.
- 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: 77.24% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.26 |
3. HD Growth Analysis
3.1 Past
- HD shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.47%.
- HD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.26% yearly.
- The Revenue has been growing slightly by 3.24% in the past year.
- HD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.51% yearly.
EPS 1Y (TTM)-1.47%
EPS 3Y-4.12%
EPS 5Y4.26%
EPS Q2Q%-9.93%
Revenue 1Y (TTM)3.24%
Revenue growth 3Y1.52%
Revenue growth 5Y4.51%
Sales Q2Q%-3.79%
3.2 Future
- HD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.18% yearly.
- Based on estimates for the next years, HD will show a small growth in Revenue. The Revenue will grow by 3.81% on average per year.
EPS Next Y5.55%
EPS Next 2Y6.91%
EPS Next 3Y7.68%
EPS Next 5Y7.18%
Revenue Next Year3.95%
Revenue Next 2Y4.02%
Revenue Next 3Y4.17%
Revenue Next 5Y3.81%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. HD Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 22.54, HD is valued on the expensive side.
- HD's Price/Earnings ratio is a bit cheaper when compared to the industry. HD is cheaper than 65.04% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 25.54, HD is valued at the same level.
- A Price/Forward Earnings ratio of 21.36 indicates a rather expensive valuation of HD.
- The rest of the industry has a similar Price/Forward Earnings ratio as HD.
- When comparing the Price/Forward Earnings ratio of HD to the average of the S&P500 Index (22.70), we can say HD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.54 | ||
| Fwd PE | 21.36 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HD is on the same level as its industry peers.
- 60.98% of the companies in the same industry are more expensive than HD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.09 | ||
| EV/EBITDA | 15.17 |
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.
- The excellent profitability rating of HD may justify a higher PE ratio.
PEG (NY)4.06
PEG (5Y)5.29
EPS Next 2Y6.91%
EPS Next 3Y7.68%
5. HD Dividend Analysis
5.1 Amount
- HD has a Yearly Dividend Yield of 2.84%.
- Compared to an average industry Dividend Yield of 2.79, HD pays a better dividend. On top of this HD pays more dividend than 82.93% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.89, HD pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
5.2 History
- The dividend of HD is nicely growing with an annual growth rate of 8.96%!
- HD has paid a dividend for at least 10 years, which is a reliable track record.
- HD has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.96%
Div Incr Years15
Div Non Decr Years34
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 2Y6.91%
EPS Next 3Y7.68%
HD Fundamentals: All Metrics, Ratios and Statistics
NYSE:HD (3/24/2026, 3:01:10 PM)
331.385
+0.49 (+0.15%)
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 Change1.33%
Ins Owners0.04%
Ins Owner Change0.22%
Market Cap329.90B
Revenue(TTM)164.68B
Net Income(TTM)14.16B
Analysts75.65
Price Target407.6 (23%)
Short Float %0.91%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
Yearly Dividend9.2
Dividend Growth(5Y)8.96%
DP64.65%
Div Incr Years15
Div Non Decr Years34
Ex-Date03-12 2026-03-12 (2.33)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.72%
Min EPS beat(2)-5.4%
Max EPS beat(2)3.96%
EPS beat(4)1
Avg EPS beat(4)-2.22%
Min EPS beat(4)-5.4%
Max EPS beat(4)3.96%
EPS beat(8)1
Avg EPS beat(8)-2.03%
EPS beat(12)2
Avg EPS beat(12)-1.64%
EPS beat(16)3
Avg EPS beat(16)-0.92%
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)0.82%
PT rev (3m)0.35%
EPS NQ rev (1m)-5.96%
EPS NQ rev (3m)-5.96%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)-0.31%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.54 | ||
| Fwd PE | 21.36 | ||
| P/S | 2 | ||
| P/FCF | 26.09 | ||
| P/OCF | 20.21 | ||
| P/B | 25.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.17 |
EPS(TTM)14.7
EY4.44%
EPS(NY)15.52
Fwd EY4.68%
FCF(TTM)12.7
FCFY3.83%
OCF(TTM)16.4
OCFY4.95%
SpS165.43
BVpS12.87
TBVpS-19.95
PEG (NY)4.06
PEG (5Y)5.29
Graham Number65.25
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
WACC8.29%
ROIC/WACC2.49
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)-1.47%
EPS 3Y-4.12%
EPS 5Y4.26%
EPS Q2Q%-9.93%
EPS Next Y5.55%
EPS Next 2Y6.91%
EPS Next 3Y7.68%
EPS Next 5Y7.18%
Revenue 1Y (TTM)3.24%
Revenue growth 3Y1.52%
Revenue growth 5Y4.51%
Sales Q2Q%-3.79%
Revenue Next Year3.95%
Revenue Next 2Y4.02%
Revenue Next 3Y4.17%
Revenue Next 5Y3.81%
EBIT growth 1Y-2.95%
EBIT growth 3Y-4.57%
EBIT growth 5Y0.6%
EBIT Next Year19.6%
EBIT Next 3Y10.35%
EBIT Next 5Y7.64%
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 INC / HD Fundamental Analysis FAQ
What is the ChartMill fundamental rating of HOME DEPOT INC (HD) stock?
ChartMill assigns a fundamental rating of 5 / 10 to HD.
What is the valuation status for HD stock?
ChartMill assigns a valuation rating of 4 / 10 to HOME DEPOT INC (HD). This can be considered as Fairly Valued.
How profitable is HOME DEPOT INC (HD) stock?
HOME DEPOT INC (HD) 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 (HD) is 22.54 and the Price/Book (PB) ratio is 25.75.
Is the dividend of HOME DEPOT INC sustainable?
The dividend rating of HOME DEPOT INC (HD) is 6 / 10 and the dividend payout ratio is 64.65%.