Home Depot
The Home Depot, Inc. operates as a home improvement retailer. The last earnings update was 25 days ago. More info.
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HD Share Price and Events
7 Day Returns
1 Year Returns
HD Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Home Depot (HD) | 3.6% | -1.6% | 17.6% | 9.9% | 44.7% | 139.8% |
| US Specialty Retail | 1.1% | 0% | 19.5% | 19.8% | 21.7% | 41% |
| US Market | -1.1% | 0.3% | 16.7% | 6.4% | 37.9% | 42.1% |
1 Year Return vs Industry and Market
- HD underperformed the Specialty Retail industry which returned 19.8% over the past year.
- HD outperformed the Market in United States of America which returned 6.4% over the past year.
HD Value
Is Home Depot undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Home Depot
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Home Depot.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 31 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 8.5% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Specialty Retail Unlevered Beta | Simply Wall St/ S&P Global | 0.86 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.862 (1 + (1- 21%) (13.7%)) |
0.97 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.97 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.97 * 5.96%) |
8.51% |
Discounted Cash Flow Calculation for NYSE:HD using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Home Depot is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 8.51%) |
|
|---|---|---|---|
| 2019 | 11,693.22 | Analyst x9 | 10,775.98 |
| 2020 | 11,580.71 | Analyst x11 | 9,835.13 |
| 2021 | 11,834.93 | Analyst x9 | 9,262.61 |
| 2022 | 12,535.50 | Analyst x4 | 9,041.32 |
| 2023 | 13,511.00 | Analyst x2 | 8,980.50 |
| 2024 | 14,612.50 | Analyst x2 | 8,950.76 |
| 2025 | 15,458.16 | Est @ 5.79% | 8,726.01 |
| 2026 | 16,210.98 | Est @ 4.87% | 8,433.15 |
| 2027 | 16,896.39 | Est @ 4.23% | 8,100.23 |
| 2028 | 17,534.84 | Est @ 3.78% | 7,746.90 |
| Present value of next 10 years cash flows | $89,852.60 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $17,534.84 × (1 + 2.73%) ÷ (8.51% – 2.73%) |
$311,549.94 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $311,549.94 ÷ (1 + 8.51%)10 |
$137,642.80 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $89,852.60 + $137,642.80 |
$227,495.40 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $227,495.40 / 1,129.53 |
$201.41 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $201.41 |
| Current discount | Discount to share price of
$188.75
= -1 x ($188.75 - $201.41) / $201.41 |
6.3% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Home Depot's share price is below the future cash flow value, but not at a moderate discount (< 20%).
- Home Depot's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Home Depot's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Home Depot's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-02-03) in USD | $9.78 |
| NYSE:HD Share Price ** | NYSE (2019-03-22) in USD | $188.75 |
| United States of America Specialty Retail Industry PE Ratio | Median Figure of 66 Publicly-Listed Specialty Retail Companies | 15.09x |
| United States of America Market PE Ratio | Median Figure of 3,061 Publicly-Listed Companies | 17.15x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Home Depot.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:HD Share Price ÷ EPS (both in USD) = 188.75 ÷ 9.78 |
19.3x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Home Depot is overvalued based on earnings compared to the US Specialty Retail industry average.
- Home Depot is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Home Depot's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 19.3x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 31 Analysts |
4.9%per year |
| United States of America Specialty Retail Industry PEG Ratio | Median Figure of 59 Publicly-Listed Specialty Retail Companies | 1.74x |
| United States of America Market PEG Ratio | Median Figure of 2,104 Publicly-Listed Companies | 1.45x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 19.3x ÷ 4.9% |
3.96x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Home Depot is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Home Depot's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-02-03) in USD | $-1.68 |
| NYSE:HD Share Price * | NYSE (2019-03-22) in USD | $188.75 |
| United States of America Specialty Retail Industry PB Ratio | Median Figure of 100 Publicly-Listed Specialty Retail Companies | 1.45x |
| United States of America Market PB Ratio | Median Figure of 5,164 Publicly-Listed Companies | 1.84x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:HD Share Price ÷ Book Value per Share (both in USD) = 188.75 ÷ -1.68 |
-112.16x |
* Primary Listing of Home Depot.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Home Depot has negative assets, we can't compare the value of its assets to the US Specialty Retail industry average.
Value checks
We assess Home Depot's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Specialty Retail industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Specialty Retail industry average (and greater than 0)? (1 check) Home Depot has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
HD Future Performance
How is Home Depot expected to perform in the next 1 to 3 years based on estimates from 31 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Home Depot's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Home Depot's earnings growth is positive but not above the United States of America market average.
- Home Depot's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:HD Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 31 Analysts | 4.9% |
| NYSE:HD Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 31 Analysts | 3.7% |
| United States of America Specialty Retail Industry Earnings Growth Rate | Market Cap Weighted Average | 10.2% |
| United States of America Specialty Retail Industry Revenue Growth Rate | Market Cap Weighted Average | 5.3% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.2% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 31 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2024-01-31 | 129,469 | 17,381 | 15,423 | 2 |
| 2023-01-31 | 125,245 | 16,204 | 14,264 | 2 |
| 2022-01-31 | 122,234 | 15,405 | 12,660 | 8 |
| 2021-01-31 | 116,761 | 14,623 | 11,848 | 28 |
| 2020-01-31 | 111,756 | 14,139 | 11,107 | 31 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-02-03 | 108,203 | 13,038 | 11,121 |
| 2018-10-28 | 105,595 | 12,326 | 10,556 |
| 2018-07-29 | 104,319 | 12,076 | 9,854 |
| 2018-04-29 | 101,964 | 11,448 | 9,020 |
| 2018-01-28 | 100,904 | 12,031 | 8,630 |
| 2017-10-29 | 99,228 | 11,605 | 8,595 |
| 2017-07-30 | 97,356 | 10,768 | 8,399 |
| 2017-04-30 | 95,720 | 10,711 | 8,168 |
| 2017-01-29 | 94,595 | 9,783 | 7,957 |
| 2016-10-30 | 93,368 | 9,926 | 7,684 |
| 2016-07-31 | 92,033 | 10,316 | 7,440 |
| 2016-05-01 | 90,390 | 9,605 | 7,233 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 31 Analyst Estimates (S&P Global) | See Below |
All data from Home Depot Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2024-01-31 | 13.88 | 14.81 | 12.95 | 2.00 |
| 2023-01-31 | 12.87 | 13.46 | 12.27 | 2.00 |
| 2022-01-31 | 11.97 | 12.47 | 11.57 | 7.00 |
| 2021-01-31 | 11.03 | 11.42 | 10.80 | 17.00 |
| 2020-01-31 | 10.08 | 10.16 | 10.03 | 18.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-02-03 | 9.78 |
| 2018-10-28 | 9.20 |
| 2018-07-29 | 8.52 |
| 2018-04-29 | 7.73 |
| 2018-01-28 | 7.33 |
| 2017-10-29 | 7.22 |
| 2017-07-30 | 6.98 |
| 2017-04-30 | 6.71 |
| 2017-01-29 | 6.47 |
| 2016-10-30 | 6.19 |
| 2016-07-31 | 5.94 |
| 2016-05-01 | 5.72 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Unable to establish if Home Depot will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
Future performance checks
We assess Home Depot's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Home Depot has a total score of 1/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
HD Past Performance
How has Home Depot performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Home Depot's year on year earnings growth rate has been positive over the past 5 years.
- Home Depot's 1-year earnings growth exceeds its 5-year average (28.5% vs 13.1%)
- Home Depot's earnings growth has exceeded the US Specialty Retail industry average in the past year (28.5% vs 8.4%).
Earnings and Revenue History
All data from Home Depot Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-02-03 | 108,203.00 | 11,121.00 | 19,513.00 | |
| 2018-10-28 | 105,595.00 | 10,556.00 | 19,031.00 | |
| 2018-07-29 | 104,319.00 | 9,854.00 | 18,737.00 | |
| 2018-04-29 | 101,964.00 | 9,020.00 | 18,282.00 | |
| 2018-01-28 | 100,904.00 | 8,630.00 | 17,864.00 | |
| 2017-10-29 | 99,228.00 | 8,595.00 | 17,607.00 | |
| 2017-07-30 | 97,356.00 | 8,399.00 | 17,373.00 | |
| 2017-04-30 | 95,720.00 | 8,168.00 | 17,212.00 | |
| 2017-01-29 | 94,595.00 | 7,957.00 | 17,132.00 | |
| 2016-10-30 | 93,368.00 | 7,684.00 | 17,197.00 | |
| 2016-07-31 | 92,033.00 | 7,440.00 | 17,078.00 | |
| 2016-05-01 | 90,390.00 | 7,233.00 | 16,980.00 | |
| 2016-01-31 | 88,519.00 | 7,009.00 | 16,801.00 | |
| 2015-11-01 | 86,701.00 | 6,917.00 | 16,640.00 | |
| 2015-08-02 | 85,398.00 | 6,729.00 | 16,559.00 | |
| 2015-05-03 | 84,380.00 | 6,545.00 | 16,415.00 | |
| 2015-02-01 | 83,176.00 | 6,345.00 | 16,310.00 | |
| 2014-11-02 | 81,710.00 | 5,979.00 | 16,317.00 | |
| 2014-08-03 | 80,664.00 | 5,793.00 | 16,333.00 | |
| 2014-05-04 | 79,375.00 | 5,538.00 | 16,481.00 | |
| 2014-02-02 | 78,812.00 | 5,385.00 | 16,122.00 | |
| 2013-11-03 | 79,362.00 | 5,393.00 | 16,752.00 | |
| 2013-08-04 | 78,022.00 | 4,989.00 | 16,698.00 | |
| 2013-05-05 | 76,070.00 | 4,726.00 | 16,470.00 | |
| 2013-02-03 | 74,754.00 | 4,535.00 | 16,373.00 | |
| 2012-10-28 | 72,522.00 | 4,288.00 | 16,045.00 | |
| 2012-07-29 | 71,718.00 | 4,275.00 | 15,959.00 | |
| 2012-04-29 | 71,380.00 | 4,106.00 | 16,079.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- It is difficult to establish if Home Depot has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
- Home Depot used its assets more efficiently than the US Specialty Retail industry average last year based on Return on Assets.
- Home Depot has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Home Depot's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Specialty Retail industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Home Depot has a total score of 5/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
HD Health
How is Home Depot's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Home Depot's finances.
The net worth of a company is the difference between its assets and liabilities.
- Home Depot is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Home Depot's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Home Depot has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Home Depot Company Filings, last reported 1 month ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-02-03 | -1,878.00 | 29,202.00 | 1,778.00 |
| 2018-10-28 | 1,320.00 | 25,784.00 | 1,764.00 |
| 2018-07-29 | 2,009.00 | 25,498.00 | 3,490.00 |
| 2018-04-29 | 1,687.00 | 25,793.00 | 3,599.00 |
| 2018-01-28 | 1,454.00 | 27,028.00 | 3,595.00 |
| 2017-10-29 | 2,543.00 | 25,589.00 | 3,549.00 |
| 2017-07-30 | 3,554.00 | 24,967.00 | 4,830.00 |
| 2017-04-30 | 3,962.00 | 22,937.00 | 3,565.00 |
| 2017-01-29 | 4,333.00 | 23,601.00 | 2,538.00 |
| 2016-10-30 | 5,622.00 | 22,881.00 | 3,589.00 |
| 2016-07-31 | 6,657.00 | 20,943.00 | 4,018.00 |
| 2016-05-01 | 6,335.00 | 20,948.00 | 3,257.00 |
| 2016-01-31 | 6,316.00 | 21,216.00 | 2,216.00 |
| 2015-11-01 | 7,619.00 | 20,862.00 | 3,040.00 |
| 2015-08-02 | 8,637.00 | 19,375.00 | 4,936.00 |
| 2015-05-03 | 9,204.00 | 16,872.00 | 2,827.00 |
| 2015-02-01 | 9,322.00 | 17,197.00 | 1,723.00 |
| 2014-11-02 | 10,110.00 | 16,728.00 | 2,181.00 |
| 2014-08-03 | 11,457.00 | 16,761.00 | 4,216.00 |
| 2014-05-04 | 12,146.00 | 14,752.00 | 2,511.00 |
| 2014-02-02 | 12,522.00 | 14,724.00 | 1,929.00 |
| 2013-11-03 | 14,214.00 | 16,009.00 | 4,853.00 |
| 2013-08-04 | 15,478.00 | 12,758.00 | 3,419.00 |
| 2013-05-05 | 16,393.00 | 12,792.00 | 4,337.00 |
| 2013-02-03 | 17,777.00 | 10,796.00 | 2,494.00 |
| 2012-10-28 | 17,738.00 | 10,813.00 | 2,554.00 |
| 2012-07-29 | 17,634.00 | 10,805.00 | 2,810.00 |
| 2012-04-29 | 17,975.00 | 10,825.00 | 3,191.00 |
- Home Depot has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
- Irrelevant to check if Home Depot's debt level has increased considering it has negative shareholder equity.
- Debt is well covered by operating cash flow (44.6%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 16.5x coverage).
Financial health checks
We assess Home Depot's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Home Depot has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
HD Dividends
What is Home Depot's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Home Depot
shares you are expected to receive
$58
in your first year as a dividend.
Dividend Amount
- Home Depot's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).
- Home Depot's dividend is below the markets top 25% of dividend payers in United States of America (3.72%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 31 Analyst Estimates (S&P Global) | See Below |
| United States of America Specialty Retail Industry Average Dividend Yield | Market Cap Weighted Average of 39 Stocks | 2% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2003 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.9% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.5% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2024-01-31 | 7.22 | 2.00 |
| 2023-01-31 | 6.70 | 2.00 |
| 2022-01-31 | 6.57 | 6.00 |
| 2021-01-31 | 5.90 | 12.00 |
| 2020-01-31 | 5.29 | 14.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-02-26 | 5.440 | 2.952 |
| 2018-11-15 | 4.120 | 2.324 |
| 2018-08-16 | 4.120 | 2.119 |
| 2018-05-17 | 4.120 | 2.107 |
| 2018-02-20 | 4.120 | 2.288 |
| 2017-11-16 | 3.560 | 1.899 |
| 2017-08-17 | 3.560 | 2.221 |
| 2017-05-18 | 3.560 | 2.329 |
| 2017-03-23 | 3.560 | 2.354 |
| 2017-02-21 | 3.560 | 2.424 |
| 2016-11-17 | 2.760 | 2.041 |
| 2016-08-18 | 2.760 | 2.158 |
| 2016-05-19 | 2.760 | 2.082 |
| 2016-03-24 | 2.760 | 2.055 |
| 2016-02-23 | 2.760 | 2.161 |
| 2015-11-19 | 2.360 | 1.870 |
| 2015-08-20 | 2.360 | 1.974 |
| 2015-02-24 | 2.360 | 2.076 |
| 2014-08-21 | 1.880 | 1.915 |
| 2014-05-22 | 1.880 | 2.320 |
| 2014-02-26 | 1.880 | 2.380 |
| 2013-02-26 | 1.560 | 2.045 |
| 2012-11-15 | 1.160 | 1.800 |
| 2012-08-16 | 1.160 | 1.949 |
| 2012-05-17 | 1.160 | 2.258 |
| 2012-02-23 | 1.160 | 2.332 |
| 2011-11-15 | 1.160 | 2.751 |
| 2011-08-18 | 1.000 | 2.904 |
| 2011-02-22 | 1.000 | 2.790 |
| 2010-11-18 | 0.945 | 2.702 |
| 2010-02-23 | 0.945 | 3.035 |
| 2009-03-24 | 0.900 | 3.429 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Home Depot's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are well covered by earnings (2.2x coverage).
- Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
Income/ dividend checks
We assess Home Depot's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Home Depot afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Home Depot has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
HD Management
CEO
| COMPENSATION | $11,641,012 |
| AGE | 60 |
| TENURE AS CEO | 4.3 years |
CEO Bio
Mr. Craig A. Menear has been the Chief Executive Officer and President of Home Depot, Inc. since November 1, 2014 and its Chairman of the Board since February 2, 2015. Mr. Menear is the President and Director at Home Depot U.S.A., Inc. Mr. Menear has been an Associate at Home Depot for sixteen years and served as its President of U.S. Retail from February 2014 to October 2014. Mr. Menear served as an Executive Vice President of Merchandising for Home Depot, Inc. from April 30, 2007 to February 27, 2014. He served as Senior Vice President of Merchandising at Home Depot, Inc. from August 2003 to April 30, 2007. He joined The Home Depot, Inc. in 1997 and served as its Senior Vice President of Hard Lines since August 4, 2003 until October 2006. He served in various management and vice president level positions in merchandising department, including Merchandising Vice President of Hardware, Merchandising Vice President of the Southwest Division and Divisional Merchandise Manager of the Southwest Division since he joined Home Depot, Inc. in 1997 until August 2003. His previous assignments include Ikea Wholesale, Inc., Builders Emporium, Grace Home Centers and Montgomery Ward. He has been a Director of Home Depot, Inc. since August 2014. Mr. Menear received a Bachelor of Arts from the Michigan State University College of Business in East Lansing in 1979.
CEO Compensation
- Craig's compensation has been consistent with company performance over the past year.
- Craig's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Home Depot management team in years:
- The average tenure for the Home Depot management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Craig Menear
Chairman
$12M
60
4.3 yrs
Carol Tomé
CFO & Executive VP of Corporate Services
$7M
61
17.8 yrs
Matthew Carey
Executive VP & Chief Information Officer
$4M
53
10.5 yrs
Mark Holifield
Executive VP of Supply Chain & Product Development
$4M
62
12.7 yrs
Ted Decker
Executive Vice President of Merchandising
$4M
55
12.4 yrs
Isabel Janci
Vice President of Investor Relations
1.1 yrs
Teresa Roseborough
Executive VP
59
7.3 yrs
Stacey Tank
Vice President of Corporate Communications & External Affairs
Timothy Hourigan
Executive Vice President of Human Resources
61
1.8 yrs
Bill Lennie
Executive Vice President of Outside Sales & Service
62
15.6 yrs
Board of Directors Tenure
Average tenure and age of the Home Depot board of directors in years:
- The tenure for the Home Depot board of directors is about average.
Board of Directors
Craig Menear
Chairman
$12M
60
4.1 yrs
Armando Codina
Independent Director
$295K
71
11.6 yrs
Ari Bousbib
Independent Director
$295K
57
11.3 yrs
Al Carey
Independent Director
$305K
66
11.1 yrs
Joseph Brown
Independent Director
$315K
61
7.8 yrs
Greg Brenneman
Independent Lead Director
$370K
56
4.8 yrs
Mark Vadon
Independent Director
$280K
48
6.6 yrs
Helena Foulkes
Independent Director
$294K
54
5.5 yrs
Wayne Hewett
Independent Director
$290K
53
5.2 yrs
Gerard Arpey
Independent Director
$290K
59
3.6 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 06. Mar 19 | Sell | Ann-Marie Campbell | Individual | 05. Mar 19 | 05. Mar 19 | -5,450 | $184.67 | $-1,006,452 | ||
| 01. Mar 19 | Sell | Mark Holifield | Individual | 28. Feb 19 | 28. Feb 19 | -12,000 | $183.60 | $-2,203,200 | ||
| 11. Dec 18 | Sell | Teresa Roseborough | Individual | 07. Dec 18 | 07. Dec 18 | -2,603 | $177.45 | $-461,902 | ||
| 30. Nov 18 | Sell | Ann-Marie Campbell | Individual | 28. Nov 18 | 29. Nov 18 | -2,166 | $175.73 | $-374,536 | ||
| 21. Nov 18 | Buy | Mark Vadon | Individual | 19. Nov 18 | 19. Nov 18 | 11,500 | $174.27 | $2,004,105 | ||
| 21. Nov 18 | Buy | Wayne Hewett | Individual | 21. Nov 18 | 21. Nov 18 | 250 | $169.62 | $42,405 | ||
| 21. Nov 18 | Buy | Manuel Kadre | Individual | 20. Nov 18 | 20. Nov 18 | 1,000 | $169.33 | $169,330 | ||
| 16. Nov 18 | Buy | Manuel Kadre | Individual | 14. Nov 18 | 14. Nov 18 | 2,000 | $177.48 | $354,960 | ||
| 22. Aug 18 | Sell | William Lennie | Individual | 22. Aug 18 | 22. Aug 18 | -1,207 | $201.64 | $-243,379 | ||
| 20. Aug 18 | Sell | Matthew Carey | Individual | 16. Aug 18 | 16. Aug 18 | -4,125 | $195.43 | $-806,149 | ||
| 05. Jun 18 | Buy | Stephanie Linnartz | Individual | 01. Jun 18 | 01. Jun 18 | 1,000 | $187.57 | $187,570 | ||
| 21. May 18 | Sell | Teresa Roseborough | Individual | 17. May 18 | 17. May 18 | -8,607 | $185.19 | $-1,593,930 | ||
| 21. May 18 | Sell | William Lennie | Individual | 17. May 18 | 17. May 18 | -9,000 | $186.25 | $-1,676,250 | ||
| 17. May 18 | Sell | Mark Holifield | Individual | 16. May 18 | 16. May 18 | -10,000 | $186.84 | $-1,868,400 | ||
Management checks
We assess Home Depot's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Home Depot has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
HD News
Simply Wall St News
Need To Know: The Home Depot, Inc. (NYSE:HD) Insiders Have Been Selling Shares
The Last 12 Months Of Insider Transactions At Home Depot. … In any event it's generally a positive if insiders are buying shares at around the current price. … All up, insiders sold more shares in Home Depot than they bought, over the last year.
Simply Wall St - – Full articleThe Home Depot, Inc. (NYSE:HD): Are Analysts’ Forecast Signalling Trouble Ahead?
Based on The Home Depot, Inc.'s (NYSE:HD) recently announced earnings update on 03 February 2019, … with earnings expected to decline by -0.08% in the upcoming year
Simply Wall St - – Full articleInvestors Who Bought Home Depot Shares Five Years Ago Are Now Up 135%
One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During five years of share price growth, Home Depot achieved compound earnings per share (EPS) growth of 25% per year. … The EPS growth is more impressive than the yearly share price gain of 19% over the same period.
Simply Wall St - – Full articleWhy The Home Depot, Inc.'s (NYSE:HD) CEO Pay Matters To You
Craig Menear became the CEO of The Home Depot, Inc. … This analysis aims first to contrast CEO compensation with other large companies. … View our latest analysis for Home Depot
Simply Wall St - – Full articleWhy The Home Depot, Inc.'s (NYSE:HD) High P/E Ratio Isn't Necessarily A Bad Thing
We'll show how you can use The Home Depot, Inc.'s (NYSE:HD) P/E ratio to inform your assessment of the investment opportunity. … Home Depot has a P/E ratio of 19.96, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleWhy The Home Depot, Inc. (NYSE:HD) Is An Attractive Investment To Consider
As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook.
Simply Wall St - – Full articleWhat Kind Of Shareholders Own The Home Depot, Inc. (NYSE:HD)?
Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … With a market capitalization of US$195b, Home Depot is rather large. … Companies of this size are usually well known to retail investors, too.
Simply Wall St - – Full articleThe Home Depot, Inc. (NYSE:HD) Is An Attractive Dividend Stock, Here's Why
There is a lot to be liked about The Home Depot, Inc. … Does Home Depot tick all the boxes of a great dividend stock? … See our latest analysis for Home Depot
Simply Wall St - – Full articleDid The Home Depot, Inc. (NYSE:HD) Insiders Buy Up More Shares?
Home Depot Insider Transactions Over The Last Year. … Over the last year, we can see that the biggest insider purchase was by Independent Lead Director Gregory Brenneman for US$3.0m worth of shares, at about US$178 per share. … In the last twelve months there was more buying than selling by Home Depot insiders
Simply Wall St - – Full articleHow Do Analysts See The Home Depot Inc (NYSE:HD) Performing Over The Next Year?
As The Home Depot Inc (NYSE:HD) announced its earnings release on 28 October 2018, … analyst consensus outlook appear cautiously subdued, … the higher past 5-year average growth rate of 13%.
Simply Wall St - – Full articleHD Company Info
Description
The Home Depot, Inc. operates as a home improvement retailer. It operates The Home Depot stores that sell various building materials, home improvement products, lawn and garden products, and décor products, as well as provide installation, home maintenance, and professional service programs to do-it-yourself and professional customers. The company also offers installation programs that include flooring, cabinets, countertops, water heaters, and sheds; and professional installation in various categories sold through its in-home sales programs, such as roofing, siding, windows, cabinet refacing, furnaces, and central air systems, as well as acts as a contractor to provide installation services to its do-it-for-me customers through third-party installers. In addition, it provides tool and equipment rental services. The company primarily serves home owners; and professional renovators/remodelers, general contractors, handymen, property managers, building service contractors, and specialty tradesmen, such as installers. It also sells its products through online. As of January 28, 2018, the company operated 2,284 stores, including 1,980 in the United States, including the Commonwealth of Puerto Rico, and the territories of the U.S. Virgin Islands and Guam; 182 in Canada; and 122 in Mexico. The Home Depot, Inc. was founded in 1978 and is based in Atlanta, Georgia.
Details
| Name: | The Home Depot, Inc. |
| HD | |
| Exchange: | NYSE |
| Founded: | 1978 |
| $213,198,363,567 | |
| 1,129,527,754 | |
| Website: | http://www.homedepot.com |
| Address: |
The Home Depot, Inc. 2455 Paces Ferry Road, Atlanta, Georgia, 30339, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | HD | Common Stock | New York Stock Exchange | US | USD | 22. Sep 1981 | |
| DB | HDI | Common Stock | Deutsche Boerse AG | DE | EUR | 22. Sep 1981 | |
| XTRA | HDI | Common Stock | XETRA Trading Platform | DE | EUR | 22. Sep 1981 | |
| SWX | HD | Common Stock | SIX Swiss Exchange | CH | CHF | 22. Sep 1981 | |
| WBAG | HD | Common Stock | Wiener Boerse AG | AT | EUR | 22. Sep 1981 | |
| SNSE | HD | Common Stock | Santiago Stock Exchange | CL | USD | 22. Sep 1981 | |
| BMV | HD * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 22. Sep 1981 | |
| BOVESPA | HOME34 | BDR EACH REPR 0.5 COM USD0.05 | Bolsa de Valores de Sao Paulo | BR | BRL | 24. Aug 2012 | |
| BASE | HD | CEDEAR EACH REPR 1/4 COM STK USD0.05 | Buenos Aires Stock Exchange | AR | ARS | 24. Sep 2001 |
Number of employees
Current staff
Industry
| Home Improvement Retail | |
| Retail |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/03/23 23:38 |
| End of day share price update: | 2019/03/22 00:00 |
| Last estimates confirmation: | 2019/03/23 |
| Last earnings filing: | 2019/02/26 |
| Last earnings reported: | 2019/02/03 |
| Last annual earnings reported: | 2019/02/03 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
