NasdaqGS:HDS

Stock Analysis Report

Executive Summary

HD Supply Holdings, Inc. operates as an industrial distributor in North America.

Snowflake

Fundamentals

Solid track record with adequate balance sheet.


Similar Companies

Share Price & News

How has HD Supply Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.2%

HDS

4.1%

US Trade Distributors

0.4%

US Market


1 Year Return

8.5%

HDS

17.6%

US Trade Distributors

11.4%

US Market

Return vs Industry: HDS underperformed the US Trade Distributors industry which returned 17.6% over the past year.

Return vs Market: HDS matched the US Market which returned 11.4% over the past year.


Shareholder returns

HDSIndustryMarket
7 Day1.2%4.1%0.4%
30 Day6.1%6.7%0.3%
90 Day-1.7%6.2%-1.2%
1 Year8.5%8.5%19.8%17.6%13.9%11.4%
3 Year22.2%22.2%49.8%43.3%47.2%37.6%
5 Year44.1%44.1%34.0%24.4%62.4%44.6%

Price Volatility Vs. Market

How volatile is HD Supply Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is HD Supply Holdings undervalued compared to its fair value and its price relative to the market?

32.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HDS ($40.25) is trading below our estimate of fair value ($59.52)

Significantly Below Fair Value: HDS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HDS is poor value based on its PE Ratio (16.9x) compared to the Trade Distributors industry average (16.9x).

PE vs Market: HDS is good value based on its PE Ratio (16.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: HDS is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: HDS is overvalued based on its PB Ratio (4.8x) compared to the US Trade Distributors industry average (1.7x).


Next Steps

Future Growth

How is HD Supply Holdings forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HDS's forecast earnings growth (10.4% per year) is above the savings rate (2.7%).

Earnings vs Market: HDS's earnings (10.4% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: HDS's earnings are forecast to grow, but not significantly.

Revenue vs Market: HDS's revenue (4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: HDS's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HDS's Return on Equity is forecast to be high in 3 years time (23.3%)


Next Steps

Past Performance

How has HD Supply Holdings performed over the past 5 years?

3.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HDS has become profitable over the past 5 years, growing earnings by 3.3% per year.

Accelerating Growth: HDS's earnings growth over the past year (66%) exceeds its 5-year average (3.3% per year).

Earnings vs Industry: HDS earnings growth over the past year (66%) exceeded the Trade Distributors industry 0.9%.


Return on Equity

High ROE: Whilst HDS's Return on Equity (28.93%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: HDS has a higher Return on Assets than the Trade Distributors industry average last year.


Return on Capital Employed

ROCE Improving: HDS has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is HD Supply Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: HDS's short term assets ($1.8B) exceeds its short term liabilities ($858.0M)

Long Term Liabilities: HDS's short term assets (1.8B) do not cover its long term liabilities (2.5B)


Debt to Equity History and Analysis

Debt Level: HDS's debt to equity ratio (148.2%) is considered high

Reducing Debt: HDS had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: HDS's debt is well covered by operating cash flow (32.2%).

Interest Coverage: HDS's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet

Inventory Level: HDS has a high level of physical assets or inventory.

Debt Coverage by Assets: HDS's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is HD Supply Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate HDS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate HDS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if HDS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HDS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HDS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of HD Supply Holdings's salary, the management and board of directors tenure and is there insider trading?

5.3yrs

Average management tenure


CEO

Joe DeAngelo (57yo)

14.8yrs

Tenure

US$7,467,171

Compensation

Mr. Joseph J. DeAngelo, also known as Joe, has been the Chief Executive Officer of HD Supply Holdings, Inc. since January 2005 and served as its President since January 2005 until 2018. Mr. DeAngelo has be ...


CEO Compensation Analysis

Compensation vs. Market: Joe's total compensation ($USD7.47M) is about average for companies of similar size in the US market ($USD6.91M).

Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.3yrs

Average Tenure

50yo

Average Age

Experienced Management: HDS's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

3.6yrs

Average Tenure

61yo

Average Age

Experienced Board: HDS's board of directors are considered experienced (3.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$23,130,00027 Sep 19
Impactive Capital LP
EntityCompany
Shares600,000
Max PriceUS$38.55
SellUS$29,900,23504 Jul 19
JANA Partners LLC
EntityCompany
Shares733,657
Max PriceUS$40.89
SellUS$67,05011 Apr 19
Evan Levitt
EntityIndividual
Role
Chief Financial Officer
Senior VP
Shares1,500
Max PriceUS$44.70
SellUS$41,557,01915 Jan 19
JANA Partners LLC
EntityCompany
Shares1,095,983
Max PriceUS$38.02
SellUS$59,322,72709 Jan 19
JANA Partners LLC
EntityCompany
Shares1,567,262
Max PriceUS$38.00
BuyUS$1,849,58017 Dec 18
Joseph DeAngelo
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares50,000
Max PriceUS$36.99

Ownership Breakdown


Management Team

  • Joe DeAngelo (57yo)

    Chairman & CEO

    • Tenure: 14.8yrs
    • Compensation: US$7.47m
  • John Stegeman (58yo)

    Executive President and President of HD Supply Construction & Industrial – White Cap

    • Tenure: 9.5yrs
    • Compensation: US$3.11m
  • Steve LeClair (50yo)

    Chief Executive Officer of Core & Main

    • Tenure: 2.2yrs
    • Compensation: US$1.40m
  • Evan Levitt (49yo)

    Senior VP

    • Tenure: 5.8yrs
    • Compensation: US$2.49m
  • Charlotte McLaughlin

    Investor Relations Officer

    • Tenure: 0yrs
  • Dan McDevitt (51yo)

    General Counsel & Corporate Secretary

    • Tenure: 4.8yrs
    • Compensation: US$1.28m
  • Anna Stevens (46yo)

    Chief People Officer

    • Tenure: 0yrs
    • Compensation: US$1.20m
  • Brad Paulsen (43yo)

    President of HD Supply Facilities Maintenance

    • Tenure: 1.1yrs
  • Alan Sollenberger

    Chief Operating Officer of Construction & Industrial

    • Tenure: 0yrs

Board Members

  • James Rubright (73yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$245.90k
  • Kathleen Affeldt (70yo)

    Independent Lead Director

    • Tenure: 1.6yrs
    • Compensation: US$366.03k
  • Peter Dorsman (63yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$241.23k
  • Joe DeAngelo (57yo)

    Chairman & CEO

    • Tenure: 14.8yrs
    • Compensation: US$7.47m
  • Charles Peffer (71yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$248.42k
  • Pat McNamee (59yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$237.71k
  • Scott Ostfeld (42yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: US$229.98k
  • Lauren Taylor Wolfe (40yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$239.98k
  • Stephen Konenkamp (61yo)

    Independent Director

    • Tenure: 0yrs

Company Information

HD Supply Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HD Supply Holdings, Inc.
  • Ticker: HDS
  • Exchange: NasdaqGS
  • Founded: 2007
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: US$6.677b
  • Shares outstanding: 165.88m
  • Website: https://www.hdsupply.com

Number of Employees


Location

  • HD Supply Holdings, Inc.
  • 3400 Cumberland Boulevard SE
  • Atlanta
  • Georgia
  • 30339
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HDSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2013
5HDDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2013

Biography

HD Supply Holdings, Inc. operates as an industrial distributor in North America. It operates through two segments, Facilities Maintenance, and Construction & Industrial. The Facilities Maintenance segment  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/24 00:21
End of Day Share Price2019/10/23 00:00
Earnings2019/08/04
Annual Earnings2019/02/03


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.