HOME DEPOT INC (HD) Stock Fundamental Analysis
NYSE:HD • US4370761029
370.81 USD
-9.91 (-2.6%)
At close: Mar 2, 2026
368.65 USD
-2.16 (-0.58%)
Pre-Market: 3/3/2026, 8:01:03 AM
Taking everything into account, HD scores 5 out of 10 in our fundamental rating. HD was compared to 123 industry peers in the Specialty Retail industry. HD has an excellent profitability rating, but there are concerns on its financial health. HD has a correct valuation and a medium growth rate.
1. Profitability
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.
- In the past 5 years HD always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 13.47%, HD belongs to the top of the industry, outperforming 89.43% of the companies in the same industry.
- The Return On Equity of HD (110.48%) is better than 99.19% of its industry peers.
- HD has a better Return On Invested Capital (20.64%) than 88.62% of its industry peers.
- HD had an Average Return On Invested Capital over the past 3 years of 25.05%. This is significantly above the industry average of 13.61%.
- 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
- Looking at the Profit Margin, with a value of 8.60%, HD belongs to the top of the industry, outperforming 86.99% of the companies in the same industry.
- In the last couple of years the Profit Margin of HD has declined.
- Looking at the Operating Margin, with a value of 12.68%, HD belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
- In the last couple of years the Operating Margin of HD has declined.
- HD has a Gross Margin of 33.32%. This is comparable to the rest of the industry: HD outperforms 41.46% 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. Health
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.
- HD has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for HD has been reduced compared to a year ago.
2.2 Solvency
- The Debt to FCF ratio of HD is 4.41, which is a neutral value as it means it would take HD, 4.41 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 4.41, HD is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- A Debt/Equity ratio of 3.97 is on the high side and indicates that HD has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 3.97, HD is doing worse than 75.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.97 | ||
| Debt/FCF | 4.41 | ||
| Altman-Z | N/A |
ROIC/WACC2.21
WACC9.33%
2.3 Liquidity
- A Current Ratio of 1.06 indicates that HD should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.06, HD is not doing good in the industry: 69.92% of the companies in the same industry are doing better.
- HD has a Quick Ratio of 1.06. This is a bad value and indicates that HD is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of HD (0.26) is worse than 77.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.26 |
3. Growth
3.1 Past
- HD shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.56%.
- The Earnings Per Share has been growing slightly by 3.57% on average over the past years.
- The Revenue has been growing slightly by 3.24% in the past 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
- HD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.60% yearly.
- HD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.82% yearly.
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. Valuation
4.1 Price/Earnings Ratio
- HD is valuated quite expensively with a Price/Earnings ratio of 26.06.
- 64.23% of the companies in the same industry are more expensive than HD, based on the Price/Earnings ratio.
- HD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.13.
- With a Price/Forward Earnings ratio of 23.87, HD is valued on the expensive side.
- The rest of the industry has a similar Price/Forward Earnings ratio as HD.
- The average S&P500 Price/Forward Earnings ratio is at 28.11. HD is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.06 | ||
| Fwd PE | 23.87 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as HD.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HD indicates a somewhat cheap valuation: HD is cheaper than 61.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.19 | ||
| EV/EBITDA | 16.76 |
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)6.69
PEG (5Y)7.3
EPS Next 2Y6.42%
EPS Next 3Y6.93%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.48%, HD has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.33, HD pays a better dividend. On top of this HD pays more dividend than 83.74% of the companies listed in the same industry.
- 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 | 2.48% |
5.2 History
- On average, the dividend of HD grows each year by 8.96%, which is quite nice.
- HD has paid a dividend for at least 10 years, which is a reliable track record.
- HD has not decreased their dividend for at least 10 years, which is a reliable track record.
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.
- HD's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP64.65%
EPS Next 2Y6.42%
EPS Next 3Y6.93%
370.81
-9.91 (-2.6%)
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 Change1.3%
Ins Owners0.04%
Ins Owner Change-0.22%
Market Cap369.15B
Revenue(TTM)164.68B
Net Income(TTM)14.16B
Analysts76.09
Price Target407.6 (9.92%)
Short Float %1.02%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
Yearly Dividend9.2
Dividend Growth(5Y)8.96%
DP64.65%
Div Incr Years15
Div Non Decr Years34
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)1.36%
PT rev (3m)-6.73%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-2%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.35%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.06 | ||
| Fwd PE | 23.87 | ||
| P/S | 2.24 | ||
| P/FCF | 29.19 | ||
| P/OCF | 22.61 | ||
| P/B | 28.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.76 |
EPS(TTM)14.23
EY3.84%
EPS(NY)15.53
Fwd EY4.19%
FCF(TTM)12.7
FCFY3.43%
OCF(TTM)16.4
OCFY4.42%
SpS165.43
BVpS12.87
TBVpS-19.95
PEG (NY)6.69
PEG (5Y)7.3
Graham Number64.19
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
WACC9.33%
ROIC/WACC2.21
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 INC / HD 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 26.06 and the Price/Book (PB) ratio is 28.81.
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%.