HOME DEPOT INC (HDI.DE) Stock Fundamental Analysis
Europe - FRA:HDI - US4370761029 - Common Stock
344.6 EUR
-0.15 (-0.04%)
Overall HDI gets a fundamental rating of 5 out of 10. We evaluated HDI against 57 industry peers in the Specialty Retail industry. HDI has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, HDI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
HDI had positive earnings in the past year.
HDI had a positive operating cash flow in the past year.
Each year in the past 5 years HDI has been profitable.
HDI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HDI has a Return On Assets of 14.62%. This is amongst the best in the industry. HDI outperforms 92.98% of its industry peers.
Looking at the Return On Equity, with a value of 137.17%, HDI belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 23.77%, HDI belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HDI is significantly above the industry average of 9.55%.
The 3 year average ROIC (29.60%) for HDI is well above the current ROIC(23.77%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.62% | ||
| ROE | 137.17% | ||
| ROIC | 23.77% |
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
The Profit Margin of HDI (8.86%) is better than 87.72% of its industry peers.
In the last couple of years the Profit Margin of HDI has declined.
HDI's Operating Margin of 13.09% is amongst the best of the industry. HDI outperforms 92.98% of its industry peers.
HDI's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 33.35%, HDI is in line with its industry, outperforming 49.12% of the companies in the same industry.
HDI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.09% | ||
| PM (TTM) | 8.86% | ||
| GM | 33.35% |
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
HDI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, HDI has about the same amount of shares outstanding.
HDI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, HDI has an improved debt to assets ratio.
2.2 Solvency
HDI has a debt to FCF ratio of 3.68. This is a good value and a sign of high solvency as HDI would need 3.68 years to pay back of all of its debts.
HDI has a Debt to FCF ratio of 3.68. This is in the better half of the industry: HDI outperforms 71.93% of its industry peers.
A Debt/Equity ratio of 4.31 is on the high side and indicates that HDI has dependencies on debt financing.
The Debt to Equity ratio of HDI (4.31) is worse than 87.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.31 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | N/A |
ROIC/WACC2.51
WACC9.48%
2.3 Liquidity
HDI has a Current Ratio of 1.15. This is a normal value and indicates that HDI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.15, HDI is in line with its industry, outperforming 42.11% of the companies in the same industry.
HDI has a Quick Ratio of 1.15. This is a bad value and indicates that HDI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.34, HDI is not doing good in the industry: 73.68% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.47% over the past year.
HDI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.80% yearly.
Looking at the last year, HDI shows a quite strong growth in Revenue. The Revenue has grown by 8.52% in the last year.
Measured over the past years, HDI shows a small growth in Revenue. The Revenue has been growing by 7.67% on average per year.
EPS 1Y (TTM)0.47%
EPS 3Y-1.31%
EPS 5Y7.8%
EPS Q2Q%1.74%
Revenue 1Y (TTM)8.52%
Revenue growth 3Y1.81%
Revenue growth 5Y7.67%
Sales Q2Q%4.87%
3.2 Future
HDI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.42% yearly.
The Revenue is expected to grow by 3.83% on average over the next years.
EPS Next Y3.71%
EPS Next 2Y6.13%
EPS Next 3Y7.05%
EPS Next 5Y7.42%
Revenue Next Year3.21%
Revenue Next 2Y3.91%
Revenue Next 3Y4.01%
Revenue Next 5Y3.83%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 27.09, which means the current valuation is very expensive for HDI.
HDI's Price/Earnings ratio is a bit cheaper when compared to the industry. HDI is cheaper than 61.40% of the companies in the same industry.
HDI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.76.
A Price/Forward Earnings ratio of 24.08 indicates a rather expensive valuation of HDI.
HDI's Price/Forward Earnings ratio is in line with the industry average.
HDI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.18, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.09 | ||
| Fwd PE | 24.08 |
4.2 Price Multiples
HDI's Enterprise Value to EBITDA ratio is in line with the industry average.
HDI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.3 | ||
| EV/EBITDA | 17.66 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HDI does not grow enough to justify the current Price/Earnings ratio.
HDI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)7.29
PEG (5Y)3.47
EPS Next 2Y6.13%
EPS Next 3Y7.05%
5. Dividend
5.1 Amount
HDI has a Yearly Dividend Yield of 2.25%.
Compared to an average industry Dividend Yield of 3.15, HDI pays a bit more dividend than its industry peers.
HDI's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
5.2 History
The dividend of HDI is nicely growing with an annual growth rate of 10.50%!
Dividend Growth(5Y)10.5%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
61.82% of the earnings are spent on dividend by HDI. This is not a sustainable payout ratio.
HDI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP61.82%
EPS Next 2Y6.13%
EPS Next 3Y7.05%
FRA:HDI (9/30/2025, 7:00:00 PM)
344.6
-0.15 (-0.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners73.35%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap343.01B
Analysts77.92
Price Target372.64 (8.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
Yearly Dividend7.71
Dividend Growth(5Y)10.5%
DP61.82%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.71%
Min EPS beat(2)-3.87%
Max EPS beat(2)-3.55%
EPS beat(4)0
Avg EPS beat(4)-3.02%
Min EPS beat(4)-3.87%
Max EPS beat(4)-2.12%
EPS beat(8)0
Avg EPS beat(8)-2.19%
EPS beat(12)1
Avg EPS beat(12)-1.71%
EPS beat(16)3
Avg EPS beat(16)-0.21%
Revenue beat(2)0
Avg Revenue beat(2)-2.32%
Min Revenue beat(2)-3.08%
Max Revenue beat(2)-1.56%
Revenue beat(4)0
Avg Revenue beat(4)-1.73%
Min Revenue beat(4)-3.08%
Max Revenue beat(4)-0.7%
Revenue beat(8)0
Avg Revenue beat(8)-2.28%
Revenue beat(12)0
Avg Revenue beat(12)-2.42%
Revenue beat(16)2
Avg Revenue beat(16)-1.66%
PT rev (1m)-1.17%
PT rev (3m)0.9%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-0.04%
EPS NY rev (1m)0.12%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.09 | ||
| Fwd PE | 24.08 | ||
| P/S | 2.44 | ||
| P/FCF | 28.3 | ||
| P/OCF | 22.53 | ||
| P/B | 37.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.66 |
EPS(TTM)12.72
EY3.69%
EPS(NY)14.31
Fwd EY4.15%
FCF(TTM)12.18
FCFY3.53%
OCF(TTM)15.29
OCFY4.44%
SpS141.23
BVpS9.13
TBVpS-15.17
PEG (NY)7.29
PEG (5Y)3.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.62% | ||
| ROE | 137.17% | ||
| ROCE | 31.21% | ||
| ROIC | 23.77% | ||
| ROICexc | 24.77% | ||
| ROICexgc | 43.28% | ||
| OM | 13.09% | ||
| PM (TTM) | 8.86% | ||
| GM | 33.35% | ||
| FCFM | 8.62% |
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%
ROICexcg growth 3Y-8.8%
ROICexcg 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-Score5
Asset Turnover1.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.31 | ||
| Debt/FCF | 3.68 | ||
| Debt/EBITDA | 1.79 | ||
| Cap/Depr | 91% | ||
| Cap/Sales | 2.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.8% | ||
| Profit Quality | 97.27% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.34 | ||
| Altman-Z | N/A |
F-Score5
WACC9.48%
ROIC/WACC2.51
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)0.47%
EPS 3Y-1.31%
EPS 5Y7.8%
EPS Q2Q%1.74%
EPS Next Y3.71%
EPS Next 2Y6.13%
EPS Next 3Y7.05%
EPS Next 5Y7.42%
Revenue 1Y (TTM)8.52%
Revenue growth 3Y1.81%
Revenue growth 5Y7.67%
Sales Q2Q%4.87%
Revenue Next Year3.21%
Revenue Next 2Y3.91%
Revenue Next 3Y4.01%
Revenue Next 5Y3.83%
EBIT growth 1Y2.07%
EBIT growth 3Y-2.61%
EBIT growth 5Y6.32%
EBIT Next Year15.96%
EBIT Next 3Y9.16%
EBIT Next 5Y6.31%
FCF growth 1Y-12.53%
FCF growth 3Y5.24%
FCF growth 5Y8.2%
OCF growth 1Y-8.99%
OCF growth 3Y6.13%
OCF growth 5Y7.68%