HOME DEPOT INC (HD) Stock Fundamental Analysis
NYSE:HD • US4370761029
375.12 USD
+0.03 (+0.01%)
Last: Feb 27, 2026, 11:05 AM
Overall HD gets a fundamental rating of 5 out of 10. We evaluated HD against 123 industry peers in the Specialty Retail industry. While HD has a great profitability rating, there are quite some concerns on its financial health. HD has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- HD had positive earnings in the past year.
- HD had a positive operating cash flow in the past year.
- Each year in the past 5 years HD has been profitable.
- In the past 5 years HD always reported a positive cash flow from operatings.
1.2 Ratios
- HD has a better Return On Assets (13.72%) than 91.06% of its industry peers.
- Looking at the Return On Equity, with a value of 120.35%, HD belongs to the top of the industry, outperforming 99.19% of the companies in the same industry.
- The Return On Invested Capital of HD (21.84%) is better than 88.62% 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 11.89%.
- The 3 year average ROIC (29.60%) for HD is well above the current ROIC(21.84%). The reason for the recent decline needs to be investigated.
| 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
- With an excellent Profit Margin value of 8.77%, HD belongs to the best of the industry, outperforming 87.80% of the companies in the same industry.
- HD's Profit Margin has declined in the last couple of years.
- HD's Operating Margin of 12.96% is amongst the best of the industry. HD outperforms 87.80% of its industry peers.
- HD's Operating Margin has been stable in the last couple of years.
- The Gross Margin of HD (33.36%) is comparable to the rest of the industry.
- 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
- 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 more 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
- 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.
- HD has a Debt to FCF ratio of 4.02. This is in the better half of the industry: HD outperforms 69.11% of its industry peers.
- A Debt/Equity ratio of 4.09 is on the high side and indicates that HD has dependencies on debt financing.
- HD has a Debt to Equity ratio of 4.09. This is in the lower half of the industry: HD underperforms 76.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.09 | ||
| Debt/FCF | 4.02 | ||
| Altman-Z | N/A |
ROIC/WACC2.36
WACC9.25%
2.3 Liquidity
- A Current Ratio of 1.05 indicates that HD should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.05, HD is not doing good in the industry: 69.11% of the companies in the same industry are doing better.
- 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.
- HD has a worse Quick ratio (0.29) than 73.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 1.90% over the past year.
- Measured over the past 5 years, HD shows a small growth in Earnings Per Share. The EPS has been growing by 7.80% on average per year.
- The Revenue has been growing slightly by 7.50% in the past year.
- HD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.67% yearly.
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 5.95% 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 5Y5.95%
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.
- 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
- HD is valuated quite expensively with a Price/Earnings ratio of 25.01.
- Based on the Price/Earnings ratio, HD is valued a bit cheaper than 67.48% of the companies in the same industry.
- HD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.11, which is the current average of the S&P500 Index.
- HD is valuated rather expensively with a Price/Forward Earnings ratio of 24.15.
- 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 (28.13), we can say HD is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.01 | ||
| Fwd PE | 24.15 |
4.2 Price Multiples
- HD's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, HD is valued a bit cheaper than 64.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.81 | ||
| EV/EBITDA | 16.59 |
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)123.03
PEG (5Y)3.21
EPS Next 2Y2.03%
EPS Next 3Y4.31%
5. Dividend
5.1 Amount
- HD has a Yearly Dividend Yield of 2.36%.
- Compared to an average industry Dividend Yield of 2.30, HD pays a better dividend. On top of this HD pays more dividend than 81.30% of the companies listed in the same industry.
- HD's Dividend Yield is a higher than the S&P500 average which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
5.2 History
- On average, the dividend of HD grows each year by 10.49%, which is quite nice.
- HD has been paying a dividend for at least 10 years, so it has a reliable track record.
- HD has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.49%
Div Incr Years15
Div Non Decr Years34
5.3 Sustainability
- 62.39% 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.
DP62.39%
EPS Next 2Y2.03%
EPS Next 3Y4.31%
NYSE:HD (2/27/2026, 11:05:08 AM)
375.12
+0.03 (+0.01%)
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 Change1.28%
Ins Owners0.04%
Ins Owner Change-0.22%
Market Cap373.44B
Revenue(TTM)166.19B
Net Income(TTM)14.58B
Analysts76.09
Price Target404.3 (7.78%)
Short Float %1.2%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
Yearly Dividend8.99
Dividend Growth(5Y)10.49%
DP62.39%
Div Incr Years15
Div Non Decr Years34
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)0.54%
PT rev (3m)-7.48%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)-12.85%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-3.27%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.01 | ||
| Fwd PE | 24.15 | ||
| P/S | 2.25 | ||
| P/FCF | 26.81 | ||
| P/OCF | 21.16 | ||
| P/B | 30.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.59 |
EPS(TTM)15
EY4%
EPS(NY)15.53
Fwd EY4.14%
FCF(TTM)13.99
FCFY3.73%
OCF(TTM)17.73
OCFY4.73%
SpS166.94
BVpS12.17
TBVpS-20.66
PEG (NY)123.03
PEG (5Y)3.21
Graham Number64.09
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
WACC9.25%
ROIC/WACC2.36
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 5Y5.95%
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 5Y6.06%
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 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 25.01 and the Price/Book (PB) ratio is 30.82.
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 62.39%.