HOME DEPOT INC (HDI.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HDI - US4370761029 - Common Stock
305.2 EUR
-0.65 (-0.21%)
Taking everything into account, HDI scores 5 out of 10 in our fundamental rating. HDI was compared to 54 industry peers in the Specialty Retail industry. HDI has an excellent profitability rating, but there are concerns on its financial health. HDI has a expensive valuation and it also scores bad on growth.
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.
Each year in the past 5 years HDI has been profitable.
In the past 5 years HDI always reported a positive cash flow from operatings.
1.2 Ratios
HDI has a Return On Assets of 13.72%. This is amongst the best in the industry. HDI outperforms 92.59% of its industry peers.
HDI has a Return On Equity of 120.35%. This is amongst the best in the industry. HDI outperforms 100.00% of its industry peers.
The Return On Invested Capital of HDI (21.84%) is better than 92.59% of its industry peers.
HDI had an Average Return On Invested Capital over the past 3 years of 29.60%. This is significantly above the industry average of 10.37%.
The last Return On Invested Capital (21.84%) for HDI is well below the 3 year average (29.60%), which needs to be investigated, but indicates that HDI had better years and this may not be a problem.
| 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
HDI has a better Profit Margin (8.77%) than 90.74% of its industry peers.
In the last couple of years the Profit Margin of HDI has declined.
HDI has a better Operating Margin (12.96%) than 94.44% of its industry peers.
In the last couple of years the Operating Margin of HDI has remained more or less at the same level.
The Gross Margin of HDI (33.36%) is comparable to the rest of the industry.
HDI'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
HDI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
HDI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for HDI has been reduced compared to 5 years ago.
HDI has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of HDI is 4.02, which is a neutral value as it means it would take HDI, 4.02 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.02, HDI is in the better half of the industry, outperforming 62.96% of the companies in the same industry.
A Debt/Equity ratio of 4.09 is on the high side and indicates that HDI has dependencies on debt financing.
HDI has a worse Debt to Equity ratio (4.09) than 87.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.09 | ||
| Debt/FCF | 4.02 | ||
| Altman-Z | N/A |
ROIC/WACC2.33
WACC9.37%
2.3 Liquidity
HDI has a Current Ratio of 1.05. This is a normal value and indicates that HDI is financially healthy and should not expect problems in meeting its short term obligations.
HDI's Current ratio of 1.05 is on the low side compared to the rest of the industry. HDI is outperformed by 68.52% of its industry peers.
A Quick Ratio of 0.29 indicates that HDI may have some problems paying its short term obligations.
With a Quick ratio value of 0.29, HDI is not doing good in the industry: 85.19% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
HDI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.90%.
Measured over the past 5 years, HDI shows a small growth in Earnings Per Share. The EPS has been growing by 7.80% on average per year.
Looking at the last year, HDI shows a small growth in Revenue. The Revenue has grown by 7.50% in the last year.
HDI 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
Based on estimates for the next years, HDI will show a small growth in Earnings Per Share. The EPS will grow by 6.80% on average per year.
Based on estimates for the next years, HDI will show a small growth in Revenue. The Revenue will grow by 3.96% on average per year.
EPS Next Y0.18%
EPS Next 2Y2.92%
EPS Next 3Y4.92%
EPS Next 5Y6.8%
Revenue Next Year3.6%
Revenue Next 2Y4.05%
Revenue Next 3Y4.15%
Revenue Next 5Y3.96%
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
With a Price/Earnings ratio of 23.92, HDI is valued on the expensive side.
HDI's Price/Earnings ratio is a bit cheaper when compared to the industry. HDI is cheaper than 62.96% of the companies in the same industry.
When comparing the Price/Earnings ratio of HDI to the average of the S&P500 Index (26.55), we can say HDI is valued inline with the index average.
A Price/Forward Earnings ratio of 22.70 indicates a rather expensive valuation of HDI.
HDI's Price/Forward Earnings ratio is in line with the industry average.
HDI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.92 | ||
| Fwd PE | 22.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HDI is valued a bit more expensive than the industry average as 68.52% of the companies are valued more cheaply.
HDI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.64 | ||
| EV/EBITDA | 15.95 |
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)133.7
PEG (5Y)3.07
EPS Next 2Y2.92%
EPS Next 3Y4.92%
5. Dividend
5.1 Amount
HDI has a Yearly Dividend Yield of 2.57%. Purely for dividend investing, there may be better candidates out there.
HDI's Dividend Yield is a higher than the industry average which is at 1.51.
HDI's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
5.2 History
On average, the dividend of HDI grows each year by 10.49%, which is quite nice.
Dividend Growth(5Y)10.49%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
HDI pays out 62.39% of its income as dividend. This is not a sustainable payout ratio.
HDI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP62.39%
EPS Next 2Y2.92%
EPS Next 3Y4.92%
FRA:HDI (12/15/2025, 7:00:00 PM)
305.2
-0.65 (-0.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners73.76%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap303.83B
Revenue(TTM)166.19B
Net Income(TTM)14.58B
Analysts76.6
Price Target352.36 (15.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
Yearly Dividend7.67
Dividend Growth(5Y)10.49%
DP62.39%
Div Incr Years6
Div Non Decr Years6
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)-7.58%
PT rev (3m)-5.44%
EPS NQ rev (1m)-13.1%
EPS NQ rev (3m)-13.1%
EPS NY rev (1m)-3.3%
EPS NY rev (3m)-3.29%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.92 | ||
| Fwd PE | 22.7 | ||
| P/S | 2.15 | ||
| P/FCF | 25.64 | ||
| P/OCF | 20.23 | ||
| P/B | 29.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.95 |
EPS(TTM)12.76
EY4.18%
EPS(NY)13.45
Fwd EY4.41%
FCF(TTM)11.9
FCFY3.9%
OCF(TTM)15.08
OCFY4.94%
SpS142.04
BVpS10.36
TBVpS-17.58
PEG (NY)133.7
PEG (5Y)3.07
Graham Number54.53
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
WACC9.37%
ROIC/WACC2.33
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 Y0.18%
EPS Next 2Y2.92%
EPS Next 3Y4.92%
EPS Next 5Y6.8%
Revenue 1Y (TTM)7.5%
Revenue growth 3Y1.81%
Revenue growth 5Y7.67%
Sales Q2Q%2.82%
Revenue Next Year3.6%
Revenue Next 2Y4.05%
Revenue Next 3Y4.15%
Revenue Next 5Y3.96%
EBIT growth 1Y1.71%
EBIT growth 3Y-2.61%
EBIT growth 5Y6.32%
EBIT Next Year13.5%
EBIT Next 3Y7.79%
EBIT Next 5Y5.74%
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 / HDI.DE FAQ
Can you provide the ChartMill fundamental rating for HOME DEPOT INC?
ChartMill assigns a fundamental rating of 5 / 10 to HDI.DE.
What is the valuation status of HOME DEPOT INC (HDI.DE) stock?
ChartMill assigns a valuation rating of 3 / 10 to HOME DEPOT INC (HDI.DE). This can be considered as Overvalued.
What is the profitability of HDI stock?
HOME DEPOT INC (HDI.DE) has a profitability rating of 8 / 10.
How financially healthy is HOME DEPOT INC?
The financial health rating of HOME DEPOT INC (HDI.DE) is 3 / 10.
Can you provide the expected EPS growth for HDI stock?
The Earnings per Share (EPS) of HOME DEPOT INC (HDI.DE) is expected to grow by 0.18% in the next year.