HOME DEPOT INC (HDI.DE) Stock Fundamental Analysis
Europe - FRA:HDI - US4370761029 - Common Stock
328.75 EUR
-8.85 (-2.62%)
Overall HDI gets a fundamental rating of 5 out of 10. We evaluated HDI against 53 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.
In the past 5 years HDI always reported a positive cash flow from operatings.
1.2 Ratios
HDI has a better Return On Assets (14.62%) than 92.45% of its industry peers.
The Return On Equity of HDI (137.17%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 23.77%, HDI belongs to the top of the industry, outperforming 94.34% 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 10.25%.
The last Return On Invested Capital (23.77%) 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 | 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
HDI's Profit Margin of 8.86% is amongst the best of the industry. HDI outperforms 90.57% 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 94.34% of its industry peers.
In the last couple of years the Operating Margin of HDI has remained more or less at the same level.
HDI's Gross Margin of 33.35% is in line compared to the rest of the industry. HDI outperforms 50.94% of its industry peers.
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
HDI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for HDI remains at a similar level compared to 1 year ago.
HDI has less shares outstanding than it did 5 years ago.
HDI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.26 indicates that HDI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.26, HDI belongs to the top of the industry, outperforming 94.34% 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 has a Debt to FCF ratio of 3.68. This is in the better half of the industry: HDI outperforms 75.47% 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.
HDI's Debt to Equity ratio of 4.31 is on the low side compared to the rest of the industry. HDI is outperformed by 90.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.31 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 6.26 |
ROIC/WACC2.57
WACC9.25%
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.
With a Current ratio value of 1.15, HDI is not doing good in the industry: 60.38% of the companies in the same industry are doing better.
A Quick Ratio of 0.34 indicates that HDI may have some problems paying its short term obligations.
HDI's Quick ratio of 0.34 is on the low side compared to the rest of the industry. HDI is outperformed by 77.36% of its industry peers.
| 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%.
HDI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.80% yearly.
The Revenue has grown by 8.52% in the past year. This is quite good.
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
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.
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 3Y7.1%
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.
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
HDI is valuated quite expensively with a Price/Earnings ratio of 25.52.
Based on the Price/Earnings ratio, HDI is valued a bit cheaper than 69.81% of the companies in the same industry.
HDI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 22.68, HDI is valued on the expensive side.
HDI's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of HDI to the average of the S&P500 Index (22.92), we can say HDI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.52 | ||
| Fwd PE | 22.68 |
4.2 Price Multiples
HDI's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as HDI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.66 | ||
| EV/EBITDA | 16.75 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of HDI may justify a higher PE ratio.
PEG (NY)6.87
PEG (5Y)3.27
EPS Next 2Y6.13%
EPS Next 3Y7.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.37%, HDI has a reasonable but not impressive dividend return.
HDI's Dividend Yield is a higher than the industry average which is at 3.56.
Compared to an average S&P500 Dividend Yield of 2.34, HDI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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
HDI pays out 61.82% 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.
DP61.82%
EPS Next 2Y6.13%
EPS Next 3Y7.1%
FRA:HDI (10/23/2025, 7:00:00 PM)
328.75
-8.85 (-2.62%)
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 Cap327.23B
Revenue(TTM)165.05B
Net Income(TTM)14.63B
Analysts77.92
Price Target376.54 (14.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
Yearly Dividend7.7
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)1.04%
PT rev (3m)1.95%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)0.24%
EPS NY rev (1m)0.12%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.52 | ||
| Fwd PE | 22.68 | ||
| P/S | 2.3 | ||
| P/FCF | 26.66 | ||
| P/OCF | 21.23 | ||
| P/B | 35.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.75 |
EPS(TTM)12.88
EY3.92%
EPS(NY)14.5
Fwd EY4.41%
FCF(TTM)12.33
FCFY3.75%
OCF(TTM)15.49
OCFY4.71%
SpS143.03
BVpS9.24
TBVpS-15.36
PEG (NY)6.87
PEG (5Y)3.27
Graham Number51.75
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 | 6.26 |
F-Score5
WACC9.25%
ROIC/WACC2.57
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 3Y7.1%
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 3Y9.51%
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 3.71% in the next year.