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Home Depot

NYSE:HD
Snowflake Description

Established dividend payer with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HD
NYSE
$203B
Market Cap
  1. Home
  2. US
  3. Retail
Company description

The Home Depot, Inc. operates as a home improvement retailer. The last earnings update was 63 days ago. More info.


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HD Share Price and Events
7 Day Returns
0.4%
NYSE:HD
2.2%
US Specialty Retail
3.2%
US Market
1 Year Returns
-13.6%
NYSE:HD
0.5%
US Specialty Retail
-6.5%
US Market
HD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Home Depot (HD) 0.4% 10.4% 0.1% -13.6% 44.9% 125.5%
US Specialty Retail 2.2% 14.5% -3.8% 0.5% 31.1% 42.1%
US Market 3.2% 11.4% -1.4% -6.5% 42.1% 41.6%
1 Year Return vs Industry and Market
  • HD underperformed the Specialty Retail industry which returned 0.5% over the past year.
  • HD underperformed the Market in United States of America which returned -6.5% over the past year.
Price Volatility
HD
Industry
5yr Volatility vs Market

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Home Depot.

NYSE:HD Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 27 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.8%
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.

Calculation of Discount Rate/ Cost of Equity for NYSE:HD
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 7.3%
Specialty Retail Unlevered Beta Simply Wall St/ S&P Global 0.88
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.885 (1 + (1- 21%) (12.71%))
0.974
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% + (0.974 * 7.27%)
9.81%

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 use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:HD DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 11,693.22 12,199.48 12,172.67 13,364.33 14,540.50
Source Analyst x9 Analyst x10 Analyst x6 Analyst x3 Analyst x2
Present Value
Discounted (@ 9.81%)
10,648.74 10,117.41 9,193.43 9,191.85 9,107.50
Present value of next 5 years cash flows $48,258.93
NYSE:HD DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $14,540.50 × (1 + 2.73%) ÷ (9.81% – 2.73%)
$211,025.03
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $211,025.03 ÷ (1 + 9.81%)5
$132,176.34
NYSE:HD Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $48,258.93 + $132,176.34
$180,435.26
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $180,435.26 / 1,129.53
$159.74
NYSE:HD Discount to Share Price
Calculation Result
Value per share (USD) From above. $159.74
Current discount Discount to share price of $177.11
= -1 x ($177.11 - $159.74) / $159.74
-10.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Home Depot is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
NYSE:HD PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-10-28) in USD $9.20
NYSE:HD Share Price ** NYSE (2019-01-22) in USD $177.11
United States of America Specialty Retail Industry PE Ratio Median Figure of 65 Publicly-Listed Specialty Retail Companies 15.3x
United States of America Market PE Ratio Median Figure of 3,026 Publicly-Listed Companies 17.11x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Home Depot.

NYSE:HD PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:HD Share Price ÷ EPS (both in USD)

= 177.11 ÷ 9.20

19.26x

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?
Raw Data
NYSE:HD PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.26x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 27 Analysts
5%per year
United States of America Specialty Retail Industry PEG Ratio Median Figure of 59 Publicly-Listed Specialty Retail Companies 1.48x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.29x

*Line of best fit is calculated by linear regression .

NYSE:HD PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.26x ÷ 5%

3.87x

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?
Raw Data
NYSE:HD PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-10-28) in USD $1.17
NYSE:HD Share Price * NYSE (2019-01-22) in USD $177.11
United States of America Specialty Retail Industry PB Ratio Median Figure of 99 Publicly-Listed Specialty Retail Companies 1.47x
United States of America Market PB Ratio Median Figure of 5,101 Publicly-Listed Companies 1.77x
NYSE:HD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:HD Share Price ÷ Book Value per Share (both in USD)

= 177.11 ÷ 1.17

151.75x

* Primary Listing of Home Depot.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Home Depot is overvalued based on assets compared to the US Specialty Retail industry average.
X
Value checks
We assess Home Depot's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Specialty Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Specialty Retail industry average (and greater than 0)? (1 check)
  5. 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 27 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!
Annual Growth Rate
5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Home Depot expected to grow at an attractive rate?
  • 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
Raw Data
NYSE:HD Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:HD Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 27 Analysts 5%
NYSE:HD Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 27 Analysts 4%
United States of America Specialty Retail Industry Earnings Growth Rate Market Cap Weighted Average 11.1%
United States of America Specialty Retail Industry Revenue Growth Rate Market Cap Weighted Average 5.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.6%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*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
Raw Data
NYSE:HD Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 27 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:HD Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-01-31 126,546 17,273 13,852 4
2022-01-31 122,207 16,146 12,905 5
2021-01-31 117,009 14,917 12,113 18
2020-01-31 111,892 14,034 11,438 27
2019-01-31 108,283 13,698 11,226 27
NYSE:HD Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
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
2016-01-31 88,519 9,373 7,009
2015-11-01 86,701 9,361 6,917

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Home Depot's earnings are expected to grow by 5% yearly, however this is not considered high growth (20% yearly).
  • Home Depot's revenue is expected to grow by 4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:HD Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 27 Analyst Estimates (S&P Global) See Below

All data from Home Depot Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HD Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-01-31 13.32 14.48 12.62 3.00
2022-01-31 12.21 13.03 11.84 4.00
2021-01-31 11.26 11.80 10.98 13.00
2020-01-31 10.29 10.59 10.06 22.00
2019-01-31 9.82 10.15 9.73 23.00
NYSE:HD Past Financials Data
Date (Data in USD Millions) EPS *
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
2016-01-31 5.49
2015-11-01 5.36

*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.
  • Home Depot is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Home Depot's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Home Depot has a total score of 2/6, 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
Below we compare Home Depot's growth in the last year to its industry (Specialty Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 (22.8% vs 12.5%)
  • Home Depot's earnings growth has not exceeded the US Specialty Retail industry average in the past year (22.8% vs 27.9%).
Earnings and Revenue History
Home Depot's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Home Depot Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HD Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
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
2012-01-29 70,395.00 3,883.00 16,028.00

*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.
  • Whilst Home Depot made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • 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).
X
Past performance checks
We assess Home Depot's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Specialty Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Home Depot has a total score of 4/6, 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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Home Depot's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.8x debt.
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.
Raw Data

All data from Home Depot Company Filings, last reported 2 months ago.

NYSE:HD Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
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
2012-01-29 17,898.00 10,788.00 1,987.00
  • Home Depot's level of debt (1953.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (110.8% vs 1953.3% today).
  • Debt is well covered by operating cash flow (47.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 16.1x coverage).
X
Financial health checks
We assess Home Depot's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Home Depot has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
2.33%
Current annual income from Home Depot dividends. Estimated to be 2.72% next year.
If you bought $2,000 of Home Depot shares you are expected to receive $47 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Home Depot's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Home Depot's dividend is below the markets top 25% of dividend payers in United States of America (3.7%).
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.
Raw Data
NYSE:HD Annualized Past and Future Dividends
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 27 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 1986 Stocks 2.6%
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.

NYSE:HD Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-01-31 6.65 2.00
2022-01-31 5.94 3.00
2021-01-31 5.32 9.00
2020-01-31 4.76 14.00
2019-01-31 4.04 14.00
NYSE:HD Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-11-15 4.120 2.382
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
2009-02-26 0.900 3.503
2009-01-23 0.900 4.211

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).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
X
Income/ dividend checks
We assess Home Depot's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of Home Depot's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Craig Menear
COMPENSATION $11,641,010
AGE 60
TENURE AS CEO 4.2 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:

7.2
Average Tenure
60
Average Age
  • 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

TITLE
Chairman
COMPENSATION
$12M
AGE
60
TENURE
4.2 yrs

Carol Tomé

TITLE
CFO & Executive VP of Corporate Services
COMPENSATION
$7M
AGE
61
TENURE
17.7 yrs

Matthew Carey

TITLE
Executive VP & Chief Information Officer
COMPENSATION
$4M
AGE
53
TENURE
10.3 yrs

Mark Holifield

TITLE
Executive VP of Supply Chain & Product Development
COMPENSATION
$4M
AGE
62
TENURE
12.5 yrs

Ted Decker

TITLE
Executive Vice President of Merchandising
COMPENSATION
$4M
AGE
55
TENURE
12.3 yrs

Isabel Janci

TITLE
Vice President of Investor Relations
TENURE
0.9 yrs

Teresa Roseborough

TITLE
Executive VP
AGE
59
TENURE
7.2 yrs

Stacey Tank

TITLE
Vice President of Corporate Communications & External Affairs

Kevin Hofmann

TITLE
Chief Marketing Officer & President of Online
TENURE
2.8 yrs

Timothy Hourigan

TITLE
Executive Vice President of Human Resources
AGE
61
TENURE
1.6 yrs
Board of Directors Tenure

Average tenure and age of the Home Depot board of directors in years:

5.8
Average Tenure
58
Average Age
  • The tenure for the Home Depot board of directors is about average.
Board of Directors

Craig Menear

TITLE
Chairman
COMPENSATION
$12M
AGE
60
TENURE
3.9 yrs

Armando Codina

TITLE
Independent Director
COMPENSATION
$295K
AGE
71
TENURE
11.4 yrs

Ari Bousbib

TITLE
Independent Director
COMPENSATION
$295K
AGE
57
TENURE
11.2 yrs

Al Carey

TITLE
Independent Director
COMPENSATION
$305K
AGE
66
TENURE
10.9 yrs

Joseph Brown

TITLE
Independent Director
COMPENSATION
$315K
AGE
61
TENURE
7.6 yrs

Greg Brenneman

TITLE
Independent Lead Director
COMPENSATION
$370K
AGE
56
TENURE
4.7 yrs

Mark Vadon

TITLE
Independent Director
COMPENSATION
$280K
AGE
48
TENURE
6.3 yrs

Helena Foulkes

TITLE
Independent Director
COMPENSATION
$294K
AGE
54
TENURE
5.3 yrs

Wayne Hewett

TITLE
Independent Director
COMPENSATION
$290K
AGE
53
TENURE
5 yrs

Gerard Arpey

TITLE
Independent Director
COMPENSATION
$290K
AGE
59
TENURE
3.4 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Home Depot insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
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
22. Mar 18 Buy Gregory Brenneman Individual 21. Mar 18 21. Mar 18 16,827 $178.29 $3,000,086
06. Mar 18 Buy Armando Codina Individual 02. Mar 18 02. Mar 18 6,650 $178.66 $1,188,089
X
Management checks
We assess Home Depot's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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

Why 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 -

What 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 -

The 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 -

Did 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 -

How 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 -

What Should You Know About The Home Depot Inc's (NYSE:HD) Capital Returns?

and want to better understand how you can grow your money by investing in The Home Depot Inc (NYSE:HD). … Therefore, looking at how efficiently Home Depot is able to use capital to create earnings will help us understand your potential return. … Investors use many different metrics but the analysis below focuses on return on capital employed (ROCE).

Simply Wall St -

What Did The Home Depot Inc's (NYSE:HD) CEO Take Home Last Year?

This analysis aims first to contrast CEO compensation with other large companies. … See our latest analysis for Home Depot? … Our data indicates that The Home Depot Inc is worth US$212.8b, and total annual CEO compensation is US$12m.

Simply Wall St -

Is Now An Opportune Moment To Examine The Home Depot Inc (NYSE:HD)?

This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price? … A question to answer is whether Home Depot's current trading price of $179.93 reflective of the actual value of the? … Let’s take a look at Home Depot’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Does The Home Depot Inc's (NYSE:HD) PE Ratio Signal A Selling Opportunity?

The Home Depot Inc (NYSE:HD) is trading with a trailing P/E of 22.7, which is higher than the industry average of 19.4. … Although some investors may see this as unappealing, it is important to understand the assumptions behind the P/E ratio before making judgments. … I will deconstruct the P/E ratio and highlight what you need to be careful of when using the P/E ratio

Simply Wall St -

Is Buying The Home Depot Inc (NYSE:HD) For Its Upcoming US$1.03 Dividend A Good Choice?

Important news for shareholders and potential investors in The Home Depot Inc (NYSE:HD): The dividend payment of US$1.03 per share will be distributed into shareholder on 13 September 2018, and the stock will begin trading ex-dividend at an earlier date, 29 August 2018. … Below, I will explain how holding Home Depot can impact your portfolio income stream, by analysing the stock's most recent financial data and dividend attributes. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:?

Simply Wall St -

HD Company Info

Map
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
$202,840,594,063
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
Staff numbers
413,000
Home Depot employees.
Industry
Home Improvement Retail
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/01/22 23:38
End of day share price update: 2019/01/22 00:00
Last estimates confirmation: 2019/01/18
Last earnings filing: 2018/11/20
Last earnings reported: 2018/10/28
Last annual earnings reported: 2018/01/28


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.