NasdaqGS:HDS

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

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

Stable Share Price: HDS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.8%

HDS

7.3%

US Trade Distributors

2.5%

US Market


1 Year Return

-22.7%

HDS

2.5%

US Trade Distributors

8.4%

US Market

Return vs Industry: HDS underperformed the US Trade Distributors industry which returned -0.2% over the past year.

Return vs Market: HDS underperformed the US Market which returned 7.1% over the past year.


Shareholder returns

HDSIndustryMarket
7 Day4.8%7.3%2.5%
30 Day8.1%11.4%5.1%
90 Day-15.4%-1.5%2.0%
1 Year-22.7%-22.7%4.6%2.5%10.9%8.4%
3 Year-21.9%-21.9%14.4%9.2%30.5%21.9%
5 Year-3.0%-3.0%23.3%13.8%56.9%39.2%

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?

16.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HDS ($32.15) is trading below our estimate of fair value ($38.26)

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 good value based on its PE Ratio (11.9x) compared to the Trade Distributors industry average (15.2x).

PE vs Market: HDS is good value based on its PE Ratio (11.9x) compared to the US market (15.6x).


Price to Earnings Growth Ratio

PEG Ratio: HDS is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: HDS is overvalued based on its PB Ratio (3.8x) compared to the US Trade Distributors industry average (1.2x).


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?

5.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HDS's forecast earnings growth (5% per year) is above the savings rate (2.2%).

Earnings vs Market: HDS's earnings (5% per year) are forecast to grow slower than the US market (21.6% per year).

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

Revenue vs Market: HDS's revenue (1.2% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: HDS's revenue (1.2% 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 (20.1%)


Next Steps

Past Performance

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

-5.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HDS has high quality earnings.

Growing Profit Margin: HDS's current net profit margins (7.3%) are higher than last year (6.5%).


Past Earnings Growth Analysis

Earnings Trend: HDS has become profitable over the past 5 years, growing earnings by -5.6% per year.

Accelerating Growth: HDS's earnings growth over the past year (15.7%) exceeds its 5-year average (-5.6% per year).

Earnings vs Industry: HDS earnings growth over the past year (15.7%) exceeded the Trade Distributors industry -5.5%.


Return on Equity

High ROE: Whilst HDS's Return on Equity (33.36%) 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 ($814.0M).

Long Term Liabilities: HDS's short term assets ($1.7B) do not cover its long term liabilities ($2.5B).


Debt to Equity History and Analysis

Debt Level: HDS's debt to equity ratio (155%) 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 (32.3%).

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?

5.3yrs

Average management tenure


CEO

Joe DeAngelo (57yo)

15.33yrs

Tenure

US$6,225,534

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD6.23M) is about average for companies of similar size in the US market ($USD7.39M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Joseph DeAngelo
Chairman15.33yrsUS$6.23m0.30% $15.7m
Evan Levitt
Senior VP6.42yrsUS$2.37m0.026% $1.4m
Dan McDevitt
General Counsel & Corporate Secretary5.33yrsUS$1.38m0.0089% $463.5k
John Stegeman
Executive President and President of HD Supply Construction & Industrial – White Cap10.08yrsUS$2.84m0.051% $2.7m
Bradley Paulsen
President of HD Supply Facilities Maintenance1.67yrsUS$1.85m0.0069% $361.9k
Charlotte McLaughlin
Investor Relations Officerno datano datano data
Anna Stevens
Chief People Officer3.33yrsUS$1.20m0.0048% $251.0k
Alan Sollenberger
Chief Operating Officer of Construction & Industrialno datano datano data
Stephen LeClair
Chief Executive Officer of Core & Main2.75yrsUS$1.40mno data

5.3yrs

Average Tenure

50yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Joseph DeAngelo
Chairman15.33yrsUS$6.23m0.30% $15.7m
James Rubright
Independent Director5.58yrsUS$247.46k0.013% $694.7k
Kathleen Affeldt
Independent Director5.67yrsUS$374.97kno data
Peter Dorsman
Independent Lead Directorno dataUS$237.47kno data
Charles Peffer
Independent Director6.83yrsUS$252.46k0.017% $873.9k
Patrick McNamee
Independent Director6.75yrsUS$237.46k0.019% $1.0m
Scott Ostfeld
Independent Director2.67yrsUS$229.96k0.0014% $72.9k
Lauren Taylor Wolfe
Independent Director3.17yrsUS$239.98k0.56% $29.4m
Stephen Konenkamp
Independent Director0.58yrUS$83.68k0.00062% $32.3k

5.4yrs

Average Tenure

60yo

Average Age

Experienced Board: HDS's board of directors are considered experienced (5.4 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$5.208b
  • Shares outstanding: 161.99m
  • 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 offers electrical and lighting items, plumbing supplies, appliances, janitorial supplies, hardware products, kitchen and bath cabinets, window coverings, textiles and guest amenities, healthcare maintenance products, and water and wastewater treatment products, as well as heating, ventilating, and air conditioning products. The Construction & Industrial segment provides tilt-up brace systems, forming and shoring systems, concrete chemicals, hand and power tools, cutting tools, rebars, ladders, safety and fall arrest equipment, specialty screws and fasteners, sealants and adhesives, drainage pipes, geo-synthetics, erosion and sediment control equipment, and other engineered materials used in non-residential and residential construction. This segment also offers home improvement solutions, such as light remodeling and construction supplies, kitchen and bath cabinets, windows, plumbing materials, electrical equipment, and other products primarily to small remodeling contractors and trade professionals through local retail outlets. In addition, it provides pre-bid assistance, product submittals, engineering, and tool repair services. The company serves contractors, maintenance professionals, home builders, industrial businesses, and government entities through a network of branches and professional sales force, as well as through print catalogs and e-commerce. The company was formerly known as HDS Investment Holding, Inc. and changed its name to HD Supply Holdings, Inc. in April 2013. HD Supply Holdings, Inc. was founded in 2007 and is headquartered in Atlanta, Georgia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/28 04:12
End of Day Share Price2020/05/27 00:00
Earnings2020/02/02
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.