Home Depot
Market Cap
US$296.7b
Last Updated
2021/01/16 00:44 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 mediocre balance sheet.
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
2.4%
HD
2.0%
US Specialty Retail
-0.9%
US Market
1 Year Return
18.8%
HD
33.9%
US Specialty Retail
19.6%
US Market
Return vs Industry: HD underperformed the US Specialty Retail industry which returned 34.7% over the past year.
Return vs Market: HD underperformed the US Market which returned 21% over the past year.
Shareholder returns
| HD | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.4% | 2.0% | -0.9% |
| 30 Day | 2.2% | 7.8% | 3.0% |
| 90 Day | -4.2% | 13.1% | 11.5% |
| 1 Year | 21.6%18.8% | 35.2%33.9% | 22.3%19.6% |
| 3 Year | 47.2%36.9% | 74.5%67.1% | 45.3%35.7% |
| 5 Year | 152.2%124.5% | 115.7%99.6% | 124.8%99.9% |
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 day ago | Simply Wall St
What Type Of Shareholders Make Up The Home Depot, Inc.'s (NYSE:HD) Share Registry?1 week ago | Simply Wall St
Estimating The Fair Value Of The Home Depot, Inc. (NYSE:HD)3 weeks ago | Simply Wall St
Is Home Depot (NYSE:HD) Using Too Much Debt?Valuation
Is Home Depot undervalued compared to its fair value and its price relative to the market?
23.75x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: HD ($275.59) is trading above our estimate of fair value ($233.9)
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 (23.8x) compared to the US Specialty Retail industry average (19.5x).
PE vs Market: HD is poor value based on its PE Ratio (23.8x) compared to the US market (21.3x).
Price to Earnings Growth Ratio
PEG Ratio: HD is poor value based on its PEG Ratio (3.8x)
Price to Book Ratio
PB vs Industry: HD is overvalued based on its PB Ratio (193.2x) compared to the US Specialty Retail industry average (2.9x).
Next Steps
Future Growth
How is Home Depot forecast to perform in the next 1 to 3 years based on estimates from 29 analysts?
6.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HD's forecast earnings growth (6.3% per year) is above the savings rate (2%).
Earnings vs Market: HD's earnings (6.3% per year) are forecast to grow slower than the US market (21.6% per year).
High Growth Earnings: HD's earnings are forecast to grow, but not significantly.
Revenue vs Market: HD's revenue (3.1% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: HD's revenue (3.1% 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 (1189%).
Next Steps
Past Performance
How has Home Depot performed over the past 5 years?
12.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HD has high quality earnings.
Growing Profit Margin: HD's current net profit margins (9.9%) are lower than last year (10%).
Past Earnings Growth Analysis
Earnings Trend: HD's earnings have grown by 12% per year over the past 5 years.
Accelerating Growth: HD's earnings growth over the past year (12.5%) exceeds its 5-year average (12% per year).
Earnings vs Industry: HD earnings growth over the past year (12.5%) underperformed the Specialty Retail industry 15.3%.
Return on Equity
High ROE: Whilst HD's Return on Equity (813.68%) is outstanding, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Home Depot's financial position?
Financial Position Analysis
Short Term Liabilities: HD's short term assets ($34.5B) exceed its short term liabilities ($25.4B).
Long Term Liabilities: HD's short term assets ($34.5B) do not cover its long term liabilities ($40.0B).
Debt to Equity History and Analysis
Debt Level: HD's debt to equity ratio (2123.1%) is considered high.
Reducing Debt: HD's debt to equity ratio has increased from 275% to 2123.1% over the past 5 years.
Debt Coverage: HD's debt is well covered by operating cash flow (62.4%).
Interest Coverage: HD's interest payments on its debt are well covered by EBIT (15.4x coverage).
Balance Sheet
Next Steps
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 (1.38%).
High Dividend: HD's dividend (2.18%) is low compared to the top 25% of dividend payers in the US market (3.84%).
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 (51.7%), 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 well covered by earnings (49.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.9yrs
Average management tenure
CEO
Craig Menear (62 yo)
6.17yrs
Tenure
US$10,889,833
Compensation
Mr. Craig A. Menear has been the Chief Executive Officer of Home Depot, Inc. since November 1, 2014 and serves as its Chairman of the Board since February 2, 2015 and served as its President since November...
CEO Compensation Analysis
Compensation vs Market: Craig's total compensation ($USD10.89M) is about average for companies of similar size in the US market ($USD10.54M).
Compensation vs Earnings: Craig's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 6.17yrs | US$10.89m | 0.016% $ 47.6m | |
| President & COO | 0.25yr | US$3.78m | 0.0067% $ 20.0m | |
| Executive VP & CFO | 1.33yrs | US$2.29m | 0.0020% $ 5.8m | |
| Executive VP of Supply Chain & Product Development | 14.5yrs | US$3.78m | 0.0022% $ 6.4m | |
| Executive Vice President of U.S. Stores & International Operations | 4.92yrs | US$3.72m | 0.0048% $ 14.2m | |
| VP, Chief Accounting Officer & Corporate Controller | 0.67yr | no data | 0.00031% $ 919.8k | |
| Senior Vice President of Technology | 1yr | no data | no data | |
| Executive VP & Chief Information Officer | 12.33yrs | US$3.88m | 0.0032% $ 9.5m | |
| Executive VP | 9.17yrs | no data | 0.0019% $ 5.8m | |
| Senior Director of Corporate Communications | no data | no data | no data | |
| Executive Vice President of Outside Sales & Service | 5.5yrs | no data | 0.0034% $ 10.1m | |
| Executive Vice President of Human Resources | 3.58yrs | no data | 0.0051% $ 15.3m |
4.9yrs
Average Tenure
59yo
Average Age
Experienced Management: HD's management team is considered experienced (4.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 6.17yrs | US$10.89m | 0.016% $ 47.6m | |
| Independent Director | 5.42yrs | US$295.00k | 0.000090% $ 267.0k | |
| Independent Lead Director | 6.67yrs | US$360.00k | 0.0059% $ 17.4m | |
| Independent Director | 13.17yrs | US$300.00k | 0.00093% $ 2.8m | |
| Independent Director | 4.25yrs | US$285.00k | 0.00093% $ 2.8m | |
| Independent Director | 12.92yrs | US$310.00k | 0.00010% $ 296.7k | |
| Independent Director | 7.33yrs | US$310.00k | 0.000030% $ 89.0k | |
| Independent Director | 7yrs | US$290.00k | 0.00015% $ 445.1k | |
| Independent Director | 5.25yrs | US$285.00k | 0.00014% $ 415.4k | |
| Independent Director | 2.25yrs | US$280.00k | 0.00028% $ 830.8k | |
| Independent Director | 9.58yrs | US$305.00k | 0.000090% $ 267.0k | |
| Independent Director | 2.67yrs | US$295.00k | 0.00010% $ 296.7k |
6.3yrs
Average Tenure
60yo
Average Age
Experienced Board: HD's board of directors are considered experienced (6.3 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 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$296.700b
- Shares outstanding: 1.08b
- 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 | BVL (Bolsa de Valores de Lima) | Yes | Common Stock | PE | USD | Sep 1981 |
| HD | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Sep 1981 |
| HD | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH 8 REP 1 | AR | ARS | Sep 2001 | |
| HOME34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 28 REP 1 COM | 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...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/16 00:44 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/11/01 |
| 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.