HOME DEPOT INC (HDI.DE) Stock Fundamental Analysis
FRA:HDI - US4370761029 - Common Stock
354.4 EUR
-1.15 (-0.32%)
We assign a fundamental rating of 5 out of 10 to HDI. HDI was compared to 47 industry peers in the Specialty Retail industry. While HDI has a great profitability rating, there are some minor concerns on its financial health. HDI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HDI was profitable.
In the past year HDI had a positive cash flow from operations.
HDI had positive earnings in each of the past 5 years.
HDI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of HDI (14.62%) is better than 95.74% of its industry peers.
HDI's Return On Equity of 137.17% is amongst the best of the industry. HDI outperforms 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 23.77%, HDI belongs to the best of the industry, outperforming 97.87% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HDI is significantly above the industry average of 8.09%.
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
With an excellent Profit Margin value of 8.86%, HDI belongs to the best of the industry, outperforming 95.74% of the companies in the same industry.
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 95.74% of its industry peers.
HDI's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 33.35%, HDI perfoms like the industry average, outperforming 46.81% of the companies in the same industry.
In the last couple of years the Gross Margin of HDI has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HDI is creating value.
HDI has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, HDI has less shares outstanding
Compared to 1 year ago, HDI has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of HDI is 3.68, which is a good value as it means it would take HDI, 3.68 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.68, HDI is in the better half of the industry, outperforming 78.72% of the companies in the same industry.
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 89.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.31 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | N/A |
ROIC/WACC2.56
WACC9.27%
2.3 Liquidity
A Current Ratio of 1.15 indicates that HDI should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.15, HDI is in line with its industry, outperforming 42.55% 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.
Looking at the Quick ratio, with a value of 0.34, HDI is doing worse than 76.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
HDI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.47%.
The Earnings Per Share has been growing slightly by 7.80% on average over the past years.
Looking at the last year, HDI shows a quite strong growth in Revenue. The Revenue has grown by 8.52% in the last year.
The Revenue has been growing slightly by 7.67% on average over the past years.
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
Based on estimates for the next years, HDI will show a small growth in Earnings Per Share. The EPS will grow by 7.42% on average per year.
Based on estimates for the next years, HDI will show a small growth in Revenue. The Revenue will grow by 3.83% on average per year.
EPS Next Y3.59%
EPS Next 2Y6%
EPS Next 3Y6.99%
EPS Next 5Y7.42%
Revenue Next Year3.22%
Revenue Next 2Y3.79%
Revenue Next 3Y4.02%
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
A Price/Earnings ratio of 27.84 indicates a quite expensive valuation of HDI.
61.70% of the companies in the same industry are more expensive than HDI, based on the Price/Earnings ratio.
HDI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.07.
A Price/Forward Earnings ratio of 24.79 indicates a rather expensive valuation of HDI.
HDI's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.59. HDI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.84 | ||
| Fwd PE | 24.79 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HDI.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HDI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.07 | ||
| EV/EBITDA | 18.15 |
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)7.75
PEG (5Y)3.57
EPS Next 2Y6%
EPS Next 3Y6.99%
5. Dividend
5.1 Amount
HDI has a Yearly Dividend Yield of 2.23%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.53, HDI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.46, HDI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
5.2 History
On average, the dividend of HDI grows each year by 10.50%, which is quite nice.
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%
EPS Next 3Y6.99%
FRA:HDI (9/9/2025, 7:00:00 PM)
354.4
-1.15 (-0.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners72.71%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap352.77B
Analysts77.92
Price Target377.06 (6.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
Yearly Dividend7.69
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)1.44%
PT rev (3m)-1.32%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)0.52%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.84 | ||
| Fwd PE | 24.79 | ||
| P/S | 2.51 | ||
| P/FCF | 29.07 | ||
| P/OCF | 23.15 | ||
| P/B | 38.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.15 |
EPS(TTM)12.73
EY3.59%
EPS(NY)14.29
Fwd EY4.03%
FCF(TTM)12.19
FCFY3.44%
OCF(TTM)15.31
OCFY4.32%
SpS141.39
BVpS9.14
TBVpS-15.18
PEG (NY)7.75
PEG (5Y)3.57
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
WACC9.27%
ROIC/WACC2.56
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 Y3.59%
EPS Next 2Y6%
EPS Next 3Y6.99%
EPS Next 5Y7.42%
Revenue 1Y (TTM)8.52%
Revenue growth 3Y1.81%
Revenue growth 5Y7.67%
Sales Q2Q%4.87%
Revenue Next Year3.22%
Revenue Next 2Y3.79%
Revenue Next 3Y4.02%
Revenue Next 5Y3.83%
EBIT growth 1Y2.07%
EBIT growth 3Y-2.61%
EBIT growth 5Y6.32%
EBIT Next Year15.93%
EBIT Next 3Y9.45%
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%