Home Depot
Market Cap
US$204.8b
Last Updated
2020/03/30 01:10 UTC
Data Sources
Company Financials +
Executive Summary
The Home Depot, Inc. operates as a home improvement retailer.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer and slightly overvalued.
Similar Companies
Share Price & News
How has Home Depot's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HD's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
17.3%
HD
22.8%
US Specialty Retail
12.5%
US Market
1 Year Return
-2.6%
HD
-24.5%
US Specialty Retail
-12.7%
US Market
Return vs Industry: HD exceeded the US Specialty Retail industry which returned -24.5% over the past year.
Return vs Market: HD exceeded the US Market which returned -12.7% over the past year.
Shareholder returns
| HD | Industry | Market | |
|---|---|---|---|
| 7 Day | 17.3% | 22.8% | 12.5% |
| 30 Day | -12.5% | -24.3% | -14.7% |
| 90 Day | -12.7% | -31.5% | -21.5% |
| 1 Year | -0.02%-2.6% | -23.4%-24.5% | -10.9%-12.7% |
| 3 Year | 39.7%30.0% | -0.2%-5.1% | 12.6%5.4% |
| 5 Year | 85.9%65.8% | -0.09%-8.1% | 31.9%17.5% |
Price Volatility Vs. Market
How volatile is Home Depot's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 days ago | Simply Wall St
Here's What Analysts Are Forecasting For The Home Depot, Inc. (NYSE:HD) After Its Yearly Results1 week ago | Simply Wall St
A Sliding Share Price Has Us Looking At The Home Depot, Inc.'s (NYSE:HD) P/E Ratio3 weeks ago | Simply Wall St
Income Investors Should Know That The Home Depot, Inc. (NYSE:HD) Goes Ex-Dividend SoonValuation
Is Home Depot undervalued compared to its fair value and its price relative to the market?
30.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HD ($190.55) is trading below our estimate of fair value ($274.64)
Significantly Below Fair Value: HD is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: HD is poor value based on its PE Ratio (18.5x) compared to the Specialty Retail industry average (8.5x).
PE vs Market: HD is poor value based on its PE Ratio (18.5x) compared to the US market (13x).
Price to Earnings Growth Ratio
PEG Ratio: HD is poor value based on its PEG Ratio (4.5x)
Price to Book Ratio
PB vs Industry: HD has negative assets, so we can't compare its PB Ratio to the US Specialty Retail industry average.
Next Steps
Future Growth
How is Home Depot forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?
4.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HD's forecast earnings growth (4.1% per year) is above the savings rate (1.7%).
Earnings vs Market: HD's earnings (4.1% per year) are forecast to grow slower than the US market (12.3% per year).
High Growth Earnings: HD's earnings are forecast to grow, but not significantly.
Revenue vs Market: HD's revenue (3.3% per year) is forecast to grow slower than the US market (7.3% per year).
High Growth Revenue: HD's revenue (3.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if HD's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Home Depot performed over the past 5 years?
12.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HD has high quality earnings.
Growing Profit Margin: HD's current net profit margins (10.2%) are lower than last year (10.3%).
Past Earnings Growth Analysis
Earnings Trend: HD's earnings have grown by 12.7% per year over the past 5 years.
Accelerating Growth: HD's earnings growth over the past year (1.1%) is below its 5-year average (12.7% per year).
Earnings vs Industry: HD earnings growth over the past year (1.1%) underperformed the Specialty Retail industry 6.9%.
Return on Equity
High ROE: HD's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Next Steps
Financial Health
How is Home Depot's financial position?
Financial Position Analysis
Short Term Liabilities: HD has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: HD has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.
Debt to Equity History and Analysis
Debt Level: HD has negative shareholder equity, which is a more serious situation than a high debt level.
Reducing Debt: HD's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
Debt Coverage: HD's debt is well covered by operating cash flow (45.3%).
Interest Coverage: HD's interest payments on its debt are well covered by EBIT (14x coverage).
Balance Sheet
Inventory Level: HD has a high level of physical assets or inventory.
Debt Coverage by Assets: HD has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Next Steps
Dividend
What is Home Depot's current dividend yield, its reliability and sustainability?
3.15%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HD's dividend (3.15%) is higher than the bottom 25% of dividend payers in the US market (1.98%).
High Dividend: HD's dividend (3.15%) is low compared to the top 25% of dividend payers in the US market (5.49%).
Stability and Growth of Payments
Stable Dividend: HD's dividends per share have been stable in the past 10 years.
Growing Dividend: HD's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (54.3%), HD's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HD's dividends in 3 years are forecast to be covered by earnings (53.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.3yrs
Average management tenure
CEO
Craig Menear (61yo)
5.33s
Tenure
US$11,366,662
Compensation
Mr. Craig A. Menear has been the Chief Executive Officer and President of Home Depot, Inc. since November 1, 2014 and its Chairman of the Board since February 2, 2015. Mr. Menear is the President and Direc ...
CEO Compensation Analysis
Compensation vs Market: Craig's total compensation ($USD11.37M) is about average for companies of similar size in the US market ($USD11.74M).
Compensation vs Earnings: Craig's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 5.33yrs | US$11.37m | 0.017% $34.6m | |
| Executive VP & Chief Information Officer | 11.5yrs | US$3.88m | 0.0082% $16.8m | |
| Executive VP of Supply Chain & Product Development | 13.67yrs | US$4.01m | 0.0033% $6.7m | |
| Executive Vice President of Merchandising | 13.42yrs | US$3.99m | 0.0067% $13.8m | |
| CFO & Executive VP | 0.58yr | no data | 0.0022% $4.6m | |
| Senior Vice President of Technology | 0.17yr | no data | no data | |
| VP of Investor Relations & Treasurer | 2yrs | no data | no data | |
| Executive VP | 8.33yrs | no data | 0.0019% $4.0m | |
| Vice President of Corporate Communications | no data | no data | no data | |
| Executive Vice President of Human Resources | 2.75yrs | no data | 0.0052% $10.6m |
5.3yrs
Average Tenure
60yo
Average Age
Experienced Management: HD's management team is seasoned and experienced (5.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 5.33yrs | US$11.37m | 0.017% $34.6m | |
| Independent Director | 4.58yrs | US$295.00k | 0.000090% $184.3k | |
| Independent Lead Director | 5.83yrs | US$360.00k | 0.0059% $12.0m | |
| Independent Director | 12.33yrs | US$300.00k | 0.00093% $1.9m | |
| Independent Director | 3.42yrs | US$295.00k | 0.00093% $1.9m | |
| Independent Director | 12yrs | US$300.00k | 0.00010% $204.8k | |
| Independent Director | 6.5yrs | US$295.00k | 0.000030% $61.4k | |
| Independent Director | 6.17yrs | US$292.50k | 0.00015% $307.2k | |
| Independent Director | 4.42yrs | US$290.00k | 0.00014% $286.7k | |
| Independent Director | 8.75yrs | US$315.00k | 0.000090% $184.3k |
6.0yrs
Average Tenure
60.5yo
Average Age
Experienced Board: HD's board of directors are considered experienced (6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: HD insiders have sold more shares than they have bought 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
The Home Depot, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: The Home Depot, Inc.
- Ticker: HD
- Exchange: NYSE
- Founded: 1978
- Industry: Home Improvement Retail
- Sector: Retail
- Market Cap: US$204.792b
- Shares outstanding: 1.07b
- Website: https://www.homedepot.com
Number of Employees
Location
- The Home Depot, Inc.
- 2455 Paces Ferry Road
- Atlanta
- Georgia
- 30339
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HD | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Sep 1981 |
| HD * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Sep 1981 |
| HDI | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Sep 1981 |
| HDI | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Sep 1981 |
| HD | SNSE (Santiago Stock Exchange) | Yes | Common Stock | CL | USD | Sep 1981 |
| HD | SWX (SIX Swiss Exchange) | Yes | Common Stock | CH | CHF | Sep 1981 |
| HD-U | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Sep 1981 |
| HD | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Sep 1981 |
| HD | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH REPR 1/4 COM STK USD0.05 | AR | ARS | Sep 2001 | |
| HOME34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 0.5 COM USD0.05 | BR | BRL | Aug 2012 |
Biography
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 and cabinet makeovers, countertops, furnaces and central air systems, and windows; and professional installation in various categories sold through its stores and in-home sales programs, 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 electricians, plumbers, and painters. It also sells its products online. As of February 3, 2019, the company operated 2,287 stores in the United States, including the Commonwealth of Puerto Rico, and the territories of the U.S. Virgin Islands and Guam; Canada; and Mexico. The Home Depot, Inc. was founded in 1978 and is based in Atlanta, Georgia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 01:10 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2020/02/02 |
| Annual Earnings | 2020/02/02 |
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.