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HD

Home DepotNYSE:HD Stock Report

Market Cap

US$424.8b

7D

-0.5%

1Y

46.6%

Updated

30 Nov, 2021

Data

Company Financials +
HD fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance4/6
Financial Health3/6
Dividends5/6

HD Stock Overview

The Home Depot, Inc. operates as a home improvement retailer.

Home Depot Competitors

Floor & Decor Holdings

NYSE:FND

US$13.8b

Lumber Liquidators Holdings

NYSE:LL

US$461.3m

Tile Shop Holdings

NasdaqCM:TTSH

US$381.5m

Amazon.com

NasdaqGS:AMZN

US$1.8t

Price History & Performance

Summary of all time highs, changes and price drops for Home Depot
Historical stock prices
Current Share PriceUS$406.82
52 Week HighUS$416.56
52 Week LowUS$246.59
Beta1.01
1 Month Change9.44%
3 Month Change24.72%
1 Year Change46.65%
3 Year Change123.85%
5 Year Change213.71%
Change since IPO21,722.74%

Recent News & Updates

Nov 30

Home Depot: 2022 Growth Slowdown Keeps Us On The Sidelines

Home Depot reported better than expected Q3 results sending shares surging above $400. While the financial trends and operating momentum are positive, a slowdown in growth is expected for 2022 against difficult comps. Shares appear pricey in terms of valuation amid broader macro uncertainties with risks tilted to the downside.

Shareholder Returns

HDUS Specialty RetailUS Market
7D-0.5%-3.8%-0.9%
1Y46.6%31.6%23.3%

Return vs Industry: HD exceeded the US Specialty Retail industry which returned 29.4% over the past year.

Return vs Market: HD exceeded the US Market which returned 21.3% over the past year.

Price Volatility

Is HD's price volatile compared to industry and market?
HD volatility
HD Average Weekly Movement2.8%
Specialty Retail Industry Average Movement6.8%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

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.

About the Company

FoundedEmployeesCEOWebsite
1978504,800Craig Menearhttps://www.homedepot.com

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, 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 general contractor to provide installation services to its do-it-for-me customers through third-party installers.

Home Depot Fundamentals Summary

How do Home Depot's earnings and revenue compare to its market cap?
HD fundamental statistics
Market CapUS$424.82b
Earnings (TTM)US$15.94b
Revenue (TTM)US$147.70b

26.7x

P/E Ratio

2.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HD income statement (TTM)
RevenueUS$147.70b
Cost of RevenueUS$97.90b
Gross ProfitUS$49.80b
ExpensesUS$33.86b
EarningsUS$15.94b

Last Reported Earnings

Oct 31, 2021

Next Earnings Date

Feb 22, 2022

Earnings per share (EPS)15.26
Gross Margin33.72%
Net Profit Margin10.79%
Debt/Equity Ratio3,471.2%

How did HD perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

44%

Payout Ratio

Does HD pay a reliable dividends?

See HD dividend history and benchmarks
When do you need to buy HD by to receive an upcoming dividend?
Home Depot dividend dates
Ex Dividend DateDec 01 2021
Dividend Pay DateDec 16 2021
Days until Ex dividend0 days
Days until Dividend pay date15 days

Does HD pay a reliable dividends?

See HD dividend history and benchmarks

Valuation

Is Home Depot undervalued compared to its fair value and its price relative to the market?

26.65x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HD ($406.82) is trading above our estimate of fair value ($322.03)

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 (26.7x) compared to the US Specialty Retail industry average (9.7x).

PE vs Market: HD is poor value based on its PE Ratio (26.7x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: HD is poor value based on its PEG Ratio (7.3x)


Price to Book Ratio

PB vs Industry: HD is overvalued based on its PB Ratio (410.5x) compared to the US Specialty Retail industry average (3.1x).


Future Growth

How is Home Depot forecast to perform in the next 1 to 3 years based on estimates from 30 analysts?

3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HD's forecast earnings growth (3.6% per year) is above the savings rate (2%).

Earnings vs Market: HD's earnings (3.6% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: HD's revenue (3% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: HD's revenue (3% 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 (4947.8%).


Past Performance

How has Home Depot performed over the past 5 years?

13.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HD has high quality earnings.

Growing Profit Margin: HD's current net profit margins (10.8%) are higher than last year (9.9%).


Past Earnings Growth Analysis

Earnings Trend: HD's earnings have grown by 13.5% per year over the past 5 years.

Accelerating Growth: HD's earnings growth over the past year (27.7%) exceeds its 5-year average (13.5% per year).

Earnings vs Industry: HD earnings growth over the past year (27.7%) underperformed the Specialty Retail industry 144.8%.


Return on Equity

High ROE: Whilst HD's Return on Equity (1539.9%) 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 ($30.5B) exceed its short term liabilities ($26.9B).

Long Term Liabilities: HD's short term assets ($30.5B) do not cover its long term liabilities ($45.1B).


Debt to Equity History and Analysis

Debt Level: HD's net debt to equity ratio (2981.6%) is considered high.

Reducing Debt: HD's debt to equity ratio has increased from 409.3% to 3471.2% over the past 5 years.

Debt Coverage: HD's debt is well covered by operating cash flow (41.2%).

Interest Coverage: HD's interest payments on its debt are well covered by EBIT (17.5x coverage).


Balance Sheet


Dividend

What is Home Depot current dividend yield, its reliability and sustainability?

1.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HD's dividend (1.62%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: HD's dividend (1.62%) is low compared to the top 25% of dividend payers in the US market (3.58%).


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 (44%), 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 (47.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Craig Menear (63 yo)

7yrs

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 ($USD14.00M) is about average for companies of similar size in the US market ($USD11.11M).

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 considered experienced (3.7 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: HD insiders have only sold shares 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 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$424.817b
  • Shares outstanding: 1.04b
  • Website: https://www.homedepot.com

Number of Employees


Location

  • The Home Depot, Inc.
  • 2455 Paces Ferry Road
  • Atlanta
  • Georgia
  • 30339
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 00:12
End of Day Share Price2021/11/29 00:00
Earnings2021/10/31
Annual Earnings2021/01/31


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.