HOME DEPOT INC (HDI.DE) Stock Fundamental Analysis
FRA:HDI - Deutsche Boerse Ag - US4370761029 - Common Stock - Currency: EUR
Overall HDI gets a fundamental rating of 5 out of 10. We evaluated HDI against 56 industry peers in the Specialty Retail industry. HDI has an excellent profitability rating, but there are some minor 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.
HDI had a positive operating cash flow in the past year.
In the past 5 years HDI has always been profitable.
HDI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 14.76%, HDI belongs to the best of the industry, outperforming 96.43% of the companies in the same industry.
With an excellent Return On Equity value of 184.02%, HDI belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 24.31%, HDI belongs to the top of the industry, outperforming 100.00% 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 8.99%.
The last Return On Invested Capital (24.31%) 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 | 14.76% | ||
| ROE | 184.02% | ||
| ROIC | 24.31% |
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 8.98%, HDI belongs to the best of the industry, outperforming 94.64% of the companies in the same industry.
HDI's Profit Margin has declined in the last couple of years.
The Operating Margin of HDI (13.24%) is better than 92.86% 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 has a Gross Margin (33.34%) which 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 | 13.24% | ||
| PM (TTM) | 8.98% | ||
| GM | 33.34% |
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.
Compared to 1 year ago, HDI has about the same amount of shares outstanding.
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 5.94 indicates that HDI is not in any danger for bankruptcy at the moment.
HDI has a Altman-Z score of 5.94. This is amongst the best in the industry. HDI outperforms 92.86% of its industry peers.
The Debt to FCF ratio of HDI is 3.44, which is a good value as it means it would take HDI, 3.44 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.44, HDI is doing good in the industry, outperforming 78.57% of the companies in the same industry.
HDI has a Debt/Equity ratio of 5.96. This is a high value indicating a heavy dependency on external financing.
HDI has a worse Debt to Equity ratio (5.96) than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.96 | ||
| Debt/FCF | 3.44 | ||
| Altman-Z | 5.94 |
ROIC/WACC2.63
WACC9.24%
2.3 Liquidity
A Current Ratio of 1.09 indicates that HDI should not have too much problems paying its short term obligations.
HDI's Current ratio of 1.09 is in line compared to the rest of the industry. HDI outperforms 41.07% of its industry peers.
HDI has a Quick Ratio of 1.09. 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 0.28. This is amonst the worse of the industry: HDI underperforms 82.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.28 |
3. Growth
3.1 Past
The earnings per share for HDI have decreased by -0.40% in the last year.
HDI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.80% yearly.
HDI shows a small growth in Revenue. In the last year, the Revenue has grown by 7.33%.
The Revenue has been growing slightly by 7.67% on average over the past years.
EPS 1Y (TTM)-0.4%
EPS 3Y-1.31%
EPS 5Y7.8%
EPS Q2Q%-1.93%
Revenue 1Y (TTM)7.33%
Revenue growth 3Y1.81%
Revenue growth 5Y7.67%
Sales Q2Q%9.44%
3.2 Future
Based on estimates for the next years, HDI will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.60% on average per year.
HDI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.87% yearly.
EPS Next Y3.46%
EPS Next 2Y6.29%
EPS Next 3Y6.82%
EPS Next 5Y8.6%
Revenue Next Year3.49%
Revenue Next 2Y3.79%
Revenue Next 3Y3.83%
Revenue Next 5Y3.87%
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
HDI is valuated rather expensively with a Price/Earnings ratio of 23.27.
Compared to the rest of the industry, the Price/Earnings ratio of HDI indicates a somewhat cheap valuation: HDI is cheaper than 69.64% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.35, HDI is valued at the same level.
A Price/Forward Earnings ratio of 20.51 indicates a rather expensive valuation of HDI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HDI indicates a somewhat cheap valuation: HDI is cheaper than 64.29% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of HDI to the average of the S&P500 Index (22.19), we can say HDI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.27 | ||
| Fwd PE | 20.51 |
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 | 22.61 | ||
| EV/EBITDA | 15.47 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
HDI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.72
PEG (5Y)2.98
EPS Next 2Y6.29%
EPS Next 3Y6.82%
5. Dividend
5.1 Amount
HDI has a Yearly Dividend Yield of 2.53%.
Compared to an average industry Dividend Yield of 4.89, HDI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, HDI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
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
61.38% 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.
DP61.38%
EPS Next 2Y6.29%
EPS Next 3Y6.82%
FRA:HDI (6/19/2025, 7:00:00 PM)
301.15
-1.25 (-0.41%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners74.51%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap299.32B
Analysts78.8
Price Target372.5 (23.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
Yearly Dividend7.81
Dividend Growth(5Y)10.5%
DP61.38%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.21%
Min EPS beat(2)-3.87%
Max EPS beat(2)-2.55%
EPS beat(4)0
Avg EPS beat(4)-2.29%
Min EPS beat(4)-3.87%
Max EPS beat(4)-0.62%
EPS beat(8)1
Avg EPS beat(8)-1.55%
EPS beat(12)1
Avg EPS beat(12)-1.48%
EPS beat(16)3
Avg EPS beat(16)-0.05%
Revenue beat(2)0
Avg Revenue beat(2)-1.56%
Min Revenue beat(2)-1.56%
Max Revenue beat(2)-1.55%
Revenue beat(4)0
Avg Revenue beat(4)-1.62%
Min Revenue beat(4)-2.66%
Max Revenue beat(4)-0.7%
Revenue beat(8)0
Avg Revenue beat(8)-2.06%
Revenue beat(12)0
Avg Revenue beat(12)-2.32%
Revenue beat(16)2
Avg Revenue beat(16)-1.6%
PT rev (1m)-2.51%
PT rev (3m)-11.41%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)0.54%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.7%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.22%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.27 | ||
| Fwd PE | 20.51 | ||
| P/S | 2.11 | ||
| P/FCF | 22.61 | ||
| P/OCF | 18.43 | ||
| P/B | 43.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.47 |
EPS(TTM)12.94
EY4.3%
EPS(NY)14.69
Fwd EY4.88%
FCF(TTM)13.32
FCFY4.42%
OCF(TTM)16.34
OCFY5.42%
SpS142.84
BVpS6.97
TBVpS-17.97
PEG (NY)6.72
PEG (5Y)2.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.76% | ||
| ROE | 184.02% | ||
| ROCE | 31.94% | ||
| ROIC | 24.31% | ||
| ROICexc | 24.81% | ||
| ROICexgc | 43.5% | ||
| OM | 13.24% | ||
| PM (TTM) | 8.98% | ||
| GM | 33.34% | ||
| FCFM | 9.32% |
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-Score4
Asset Turnover1.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.96 | ||
| Debt/FCF | 3.44 | ||
| Debt/EBITDA | 1.86 | ||
| Cap/Depr | 87.9% | ||
| Cap/Sales | 2.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.1% | ||
| Profit Quality | 103.79% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.28 | ||
| Altman-Z | 5.94 |
F-Score4
WACC9.24%
ROIC/WACC2.63
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)-0.4%
EPS 3Y-1.31%
EPS 5Y7.8%
EPS Q2Q%-1.93%
EPS Next Y3.46%
EPS Next 2Y6.29%
EPS Next 3Y6.82%
EPS Next 5Y8.6%
Revenue 1Y (TTM)7.33%
Revenue growth 3Y1.81%
Revenue growth 5Y7.67%
Sales Q2Q%9.44%
Revenue Next Year3.49%
Revenue Next 2Y3.79%
Revenue Next 3Y3.83%
Revenue Next 5Y3.87%
EBIT growth 1Y1.71%
EBIT growth 3Y-2.61%
EBIT growth 5Y6.32%
EBIT Next Year16.25%
EBIT Next 3Y9.37%
EBIT Next 5Y6.28%
FCF growth 1Y15.81%
FCF growth 3Y5.24%
FCF growth 5Y8.2%
OCF growth 1Y13.37%
OCF growth 3Y6.13%
OCF growth 5Y7.68%