Home Depot
Market Cap
US$321.8b
Last Updated
2021/06/20 23:01 UTC
Data Sources
Company Financials +
Executive Summary
The Home Depot, Inc. operates as a home improvement retailer. More Details
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with proven track record.
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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: HD's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
-2.6%
HD
-4.2%
US Specialty Retail
-1.9%
US Market
1 Year Return
22.7%
HD
65.0%
US Specialty Retail
38.2%
US Market
Return vs Industry: HD underperformed the US Specialty Retail industry which returned 65% over the past year.
Return vs Market: HD underperformed the US Market which returned 38.2% over the past year.
Shareholder returns
| HD | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.6% | -4.2% | -1.9% |
| 30 Day | -4.2% | -0.8% | 1.1% |
| 90 Day | 4.7% | -1.7% | 4.3% |
| 1 Year | 25.4%22.7% | 66.1%65.0% | 40.4%38.2% |
| 3 Year | 64.9%53.3% | 76.9%70.6% | 57.5%47.8% |
| 5 Year | 169.2%139.4% | 112.8%98.1% | 127.2%101.7% |
Long-Term 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
1 week ago | Simply Wall St
Calculating The Intrinsic Value Of The Home Depot, Inc. (NYSE:HD)2 weeks ago | Simply Wall St
The Home Depot, Inc. (NYSE:HD) Passed Our Checks, And It's About To Pay A US$1.65 Dividend3 weeks ago | Simply Wall St
What Kind Of Shareholders Own The Home Depot, Inc. (NYSE:HD)?Valuation
Is Home Depot undervalued compared to its fair value and its price relative to the market?
22x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: HD ($302.61) is trading above our estimate of fair value ($276.12)
Significantly Below Fair Value: HD is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: HD is poor value based on its PE Ratio (22x) compared to the US Specialty Retail industry average (13.3x).
PE vs Market: HD is poor value based on its PE Ratio (22x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: HD is poor value based on its PEG Ratio (4.3x)
Price to Book Ratio
PB vs Industry: HD is overvalued based on its PB Ratio (184.4x) compared to the US Specialty Retail industry average (3x).
Future Growth
How is Home Depot forecast to perform in the next 1 to 3 years based on estimates from 31 analysts?
5.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HD's forecast earnings growth (5.1% per year) is above the savings rate (2%).
Earnings vs Market: HD's earnings (5.1% per year) are forecast to grow slower than the US market (15.7% per year).
High Growth Earnings: HD's earnings are forecast to grow, but not significantly.
Revenue vs Market: HD's revenue (3.7% per year) is forecast to grow slower than the US market (9.5% per year).
High Growth Revenue: HD's revenue (3.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HD's Return on Equity is forecast to be very high in 3 years time (247.4%).
Past Performance
How has Home Depot performed over the past 5 years?
12.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HD has high quality earnings.
Growing Profit Margin: HD's current net profit margins (10.4%) are higher than last year (9.8%).
Past Earnings Growth Analysis
Earnings Trend: HD's earnings have grown by 12.5% per year over the past 5 years.
Accelerating Growth: HD's earnings growth over the past year (34.5%) exceeds its 5-year average (12.5% per year).
Earnings vs Industry: HD earnings growth over the past year (34.5%) underperformed the Specialty Retail industry 122.1%.
Return on Equity
High ROE: Whilst HD's Return on Equity (844.74%) is outstanding, this metric is skewed due to their high level of debt.
Financial Health
How is Home Depot's financial position?
Financial Position Analysis
Short Term Liabilities: HD's short term assets ($30.7B) exceed its short term liabilities ($27.8B).
Long Term Liabilities: HD's short term assets ($30.7B) do not cover its long term liabilities ($43.1B).
Debt to Equity History and Analysis
Debt Level: HD's debt to equity ratio (1884.6%) is considered high.
Reducing Debt: HD's debt to equity ratio has increased from 330.3% to 1884.6% over the past 5 years.
Debt Coverage: HD's debt is well covered by operating cash flow (58.9%).
Interest Coverage: HD's interest payments on its debt are well covered by EBIT (16.9x coverage).
Balance Sheet
Dividend
What is Home Depot current dividend yield, its reliability and sustainability?
2.18%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HD's dividend (2.18%) is higher than the bottom 25% of dividend payers in the US market (1.31%).
High Dividend: HD's dividend (2.18%) is low compared to the top 25% of dividend payers in the US market (3.49%).
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 reasonably low payout ratio (45.8%), HD's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HD's dividends in 3 years are forecast to be well covered by earnings (47.9% 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 (62 yo)
6.58yrs
Tenure
US$13,995,092
Compensation
Mr. Craig A. Menear has been the Chief Executive Officer of Home Depot, Inc. since November 1, 2014 and has been its Chairman of the Board since February 2, 2015 and has been its Director since August 2014...
CEO Compensation Analysis
Compensation vs Market: Craig's total compensation ($USD14.00M) is about average for companies of similar size in the US market ($USD11.31M).
Compensation vs Earnings: Craig's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: HD's management team is seasoned and experienced (5.3 years average tenure).
Board Members
Experienced Board: HD's board of directors are considered experienced (6.7 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
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$321.753b
- Shares outstanding: 1.06b
- Website: https://www.homedepot.com
Number of Employees
Location
- The Home Depot, Inc.
- 2455 Paces Ferry Road
- Atlanta
- Georgia
- 30339
- United States
Listings
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, building materials, lawn and garden products...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/06/20 23:01 |
| End of Day Share Price | 2021/06/18 00:00 |
| Earnings | 2021/05/02 |
| Annual Earnings | 2021/01/31 |
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.