HOME DEPOT INC (HDI.DE) Stock Fundamental Analysis
Europe - FRA:HDI - US4370761029 - Common Stock
291.4 EUR
+4.2 (+1.46%)
We assign a fundamental rating of 5 out of 10 to HDI. HDI was compared to 52 industry peers in the Specialty Retail industry. While HDI belongs to the best of the industry regarding profitability, 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
HDI had positive earnings in the past year.
HDI had a positive operating cash flow in the past year.
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
HDI has a Return On Assets of 14.62%. This is amongst the best in the industry. HDI outperforms 92.31% 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.
HDI's Return On Invested Capital of 23.77% is amongst the best of the industry. HDI outperforms 96.15% 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 9.63%.
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
Looking at the Profit Margin, with a value of 8.86%, HDI belongs to the top of the industry, outperforming 90.38% 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 96.15% 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 51.92% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HDI is creating value.
The number of shares outstanding for HDI remains at a similar level compared to 1 year ago.
The number of shares outstanding for HDI has been reduced compared to 5 years ago.
The debt/assets ratio for HDI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.96 indicates that HDI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.96, HDI belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
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.
HDI's Debt to FCF ratio of 3.68 is fine compared to the rest of the industry. HDI outperforms 73.08% of its industry peers.
HDI has a Debt/Equity ratio of 4.31. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of HDI (4.31) is worse than 90.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.31 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 5.96 |
ROIC/WACC2.64
WACC9.02%
2.3 Liquidity
A Current Ratio of 1.15 indicates that HDI should not have too much problems paying its short term obligations.
HDI's Current ratio of 1.15 is in line compared to the rest of the industry. HDI outperforms 40.38% of its industry peers.
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.
HDI has a Quick ratio of 0.34. This is in the lower half of the industry: HDI underperforms 75.00% of its industry peers.
| 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.
The Earnings Per Share has been growing slightly by 7.80% on average over the past years.
The Revenue has grown by 8.52% in the past year. This is quite good.
HDI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.67% yearly.
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
The Earnings Per Share is expected to grow by 7.42% on average over the next years.
The Revenue is expected to grow by 3.83% on average over the next years.
EPS Next Y3.59%
EPS Next 2Y6%
EPS Next 3Y7.1%
EPS Next 5Y7.42%
Revenue Next Year3.29%
Revenue Next 2Y3.97%
Revenue Next 3Y4.12%
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
Based on the Price/Earnings ratio of 22.47, the valuation of HDI can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of HDI indicates a somewhat cheap valuation: HDI is cheaper than 67.31% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.07, HDI is valued at the same level.
A Price/Forward Earnings ratio of 20.01 indicates a rather expensive valuation of HDI.
HDI's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.08, HDI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.47 | ||
| Fwd PE | 20.01 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HDI is on the same level as its industry peers.
HDI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.47 | ||
| EV/EBITDA | 14.98 |
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)6.25
PEG (5Y)2.88
EPS Next 2Y6%
EPS Next 3Y7.1%
5. Dividend
5.1 Amount
HDI has a Yearly Dividend Yield of 2.50%.
Compared to an average industry Dividend Yield of 3.42, HDI pays a bit more dividend than its industry peers.
HDI's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
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 3Y7.1%
FRA:HDI (11/20/2025, 7:00:00 PM)
291.4
+4.2 (+1.46%)
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 Cap290.06B
Revenue(TTM)165.05B
Net Income(TTM)14.63B
Analysts77.92
Price Target383.84 (31.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
Yearly Dividend7.72
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)1.94%
PT rev (3m)4.77%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)0.25%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.47 | ||
| Fwd PE | 20.01 | ||
| P/S | 2.02 | ||
| P/FCF | 23.47 | ||
| P/OCF | 18.69 | ||
| P/B | 31.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.98 |
EPS(TTM)12.97
EY4.45%
EPS(NY)14.56
Fwd EY5%
FCF(TTM)12.42
FCFY4.26%
OCF(TTM)15.59
OCFY5.35%
SpS144.01
BVpS9.31
TBVpS-15.46
PEG (NY)6.25
PEG (5Y)2.88
Graham Number52.11
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%
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-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 | 5.96 |
F-Score5
WACC9.02%
ROIC/WACC2.64
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 3Y7.1%
EPS Next 5Y7.42%
Revenue 1Y (TTM)8.52%
Revenue growth 3Y1.81%
Revenue growth 5Y7.67%
Sales Q2Q%4.87%
Revenue Next Year3.29%
Revenue Next 2Y3.97%
Revenue Next 3Y4.12%
Revenue Next 5Y3.83%
EBIT growth 1Y2.07%
EBIT growth 3Y-2.61%
EBIT growth 5Y6.32%
EBIT Next Year15.96%
EBIT Next 3Y9.54%
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%
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 5 / 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 3.59% in the next year.