NasdaqGS:HDS

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet and slightly overvalued.


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

Stable Share Price: HDS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.4%

HDS

-5.7%

US Trade Distributors

-5.3%

US Market


1 Year Return

-1.3%

HDS

-0.9%

US Trade Distributors

10.4%

US Market

Return vs Industry: HDS underperformed the US Trade Distributors industry which returned 0.3% over the past year.

Return vs Market: HDS underperformed the US Market which returned 12% over the past year.


Shareholder returns

HDSIndustryMarket
7 Day-6.4%-5.7%-5.3%
30 Day-4.4%-1.9%-2.1%
90 Day13.6%2.2%1.7%
1 Year-1.3%-1.3%1.0%-0.9%12.9%10.4%
3 Year10.4%10.4%18.0%12.4%34.3%25.4%
5 Year30.5%30.5%50.4%39.4%73.7%54.3%

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?

15.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HDS ($39.86) is trading above our estimate of fair value ($26.12)

Significantly Below Fair Value: HDS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HDS is good value based on its PE Ratio (15.7x) compared to the US Trade Distributors industry average (17x).

PE vs Market: HDS is good value based on its PE Ratio (15.7x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: HDS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: HDS is overvalued based on its PB Ratio (4.2x) compared to the US Trade Distributors industry average (1.4x).


Next Steps

Future Growth

How is HD Supply Holdings forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

-1.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HDS's earnings are forecast to decline over the next 3 years (-1% per year).

Earnings vs Market: HDS's earnings are forecast to decline over the next 3 years (-1% per year).

High Growth Earnings: HDS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: HDS's revenue is expected to decline over the next 3 years (-5.5% per year).

High Growth Revenue: HDS's revenue is forecast to decline over the next 3 years (-5.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HDS's Return on Equity is forecast to be low in 3 years time (17%).


Next Steps

Past Performance

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

-14.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HDS has high quality earnings.

Growing Profit Margin: HDS's current net profit margins (6.9%) are higher than last year (6.7%).


Past Earnings Growth Analysis

Earnings Trend: HDS's earnings have declined by 14.1% per year over the past 5 years.

Accelerating Growth: HDS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HDS had negative earnings growth (-0.5%) over the past year, making it difficult to compare to the Trade Distributors industry average (-6.9%).


Return on Equity

High ROE: Whilst HDS's Return on Equity (26.58%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is HD Supply Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: HDS's short term assets ($1.7B) exceed its short term liabilities ($920.0M).

Long Term Liabilities: HDS's short term assets ($1.7B) do not cover its long term liabilities ($2.3B).


Debt to Equity History and Analysis

Debt Level: HDS's debt to equity ratio (119.5%) 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 (39.4%).

Interest Coverage: HDS's interest payments on its debt are well covered by EBIT (6.7x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Joe DeAngelo (58 yo)

15.75yrs

Tenure

US$6,225,534

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. Mr. DeAngelo has been Chief Ex ...


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD6.23M) is about average for companies of similar size in the US market ($USD7.41M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Joseph DeAngelo
Chairman15.75yrsUS$6.23m0.30%
$ 19.4m
Evan Levitt
Senior VP6.83yrsUS$2.37m0.026%
$ 1.7m
Dan McDevitt
General Counsel & Corporate Secretary5.75yrsUS$1.38m0.0089%
$ 574.7k
Bradley Paulsen
President of HD Supply Facilities Maintenance2yrsUS$1.85m0.0071%
$ 460.3k
Charlotte McLaughlin
Investor Relations Officerno datano datano data
Anna Stevens
Chief People Officer3.75yrsUS$1.20m0.0048%
$ 310.9k
Alan Sollenberger
Chief Operating Officer of Construction & Industrialno datano datano data
Stephen LeClair
Chief Executive Officer of Core & Main3.17yrsUS$1.40mno data

4.8yrs

Average Tenure

50.5yo

Average Age

Experienced Management: HDS's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joseph DeAngelo
Chairman15.75yrsUS$6.23m0.30%
$ 19.4m
James Rubright
Independent Director6yrsUS$247.46k0.013%
$ 861.1k
Kathleen Affeldt
Independent Director6yrsUS$374.97k0%
$ 0
Peter Dorsman
Independent Lead Director0.42yrUS$237.47k0%
$ 0
Charles Peffer
Independent Director7.25yrsUS$252.46k0.017%
$ 1.1m
Patrick McNamee
Independent Director7.17yrsUS$237.46k0.019%
$ 1.2m
Scott Ostfeld
Independent Director3yrsUS$229.96k0.0014%
$ 90.5k
Lauren Taylor Wolfe
Independent Director3.58yrsUS$239.98k0.56%
$ 36.4m
Stephen Konenkamp
Independent Director1yrUS$83.68k0.00062%
$ 40.1k
Milford McGuirt
Independent Director0.25yrno datano data

4.6yrs

Average Tenure

63yo

Average Age

Experienced Board: HDS's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$6.465b
  • Shares outstanding: 162.18m
  • 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 in two segments, Facilities Maintenance, and Construction & Industrial. The Facilities Maintenance segment offer ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 00:29
End of Day Share Price2020/10/30 00:00
Earnings2020/08/02
Annual Earnings2020/02/02


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.