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Home Depot

NYSE:HD
Snowflake Description

Solid track record established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HD
NYSE
$234B
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 56 days ago. More info.


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HD Share Price and Events
7 Day Returns
-1.2%
NYSE:HD
-2.7%
US Specialty Retail
-0.9%
US Market
1 Year Returns
6%
NYSE:HD
2.4%
US Specialty Retail
3.8%
US Market
HD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Home Depot (HD) -1.2% 3.7% 3.2% 6% 56.3% 160.6%
US Specialty Retail -2.7% 1.5% -4.5% 2.4% 23.4% 51.9%
US Market -0.9% 1.1% 1.1% 3.8% 35.5% 42.1%
1 Year Return vs Industry and Market
  • HD outperformed the Specialty Retail industry which returned 2.4% over the past year.
  • HD outperformed the Market in United States of America which returned 3.8% over the past year.
Price Volatility
HD
Industry
5yr Volatility vs Market
Related Companies

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 29 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.4%
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 6%
Specialty Retail Unlevered Beta Simply Wall St/ S&P Global 0.83
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.829 (1 + (1- 21%) (14.59%))
0.949
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.95
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.949 * 5.96%)
8.39%

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 try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:HD DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.39%)
2020 11,516.44 Analyst x10 10,625.16
2021 12,051.75 Analyst x10 10,258.51
2022 12,854.20 Analyst x5 10,094.76
2023 14,235.33 Analyst x3 10,314.21
2024 15,445.33 Analyst x3 10,324.82
2025 16,453.95 Est @ 6.53% 10,147.81
2026 17,340.84 Est @ 5.39% 9,867.10
2027 18,137.15 Est @ 4.59% 9,521.50
2028 18,868.70 Est @ 4.03% 9,138.93
2029 19,555.98 Est @ 3.64% 8,738.77
Present value of next 10 years cash flows $99,031.56
NYSE:HD DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $19,555.98 × (1 + 2.73%) ÷ (8.39% – 2.73%)
$355,042.64
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $355,042.64 ÷ (1 + 8.39%)10
$158,654.00
NYSE:HD Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $99,031.56 + $158,654.00
$257,685.56
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $257,685.56 / 1,100.29
$234.2
NYSE:HD Discount to Share Price
Calculation Result
Value per share (USD) From above. $234.20
Current discount Discount to share price of $213.08
= -1 x ($213.08 - $234.20) / $234.20
9%

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

Current Discount
Amount off the current price Home Depot is available for.
Intrinsic value
9%
Share price is $213.08 vs Future cash flow value of $234.2
Current Discount Checks
For Home Depot to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Home Depot's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Home Depot's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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 (2019-05-05) in USD $9.99
NYSE:HD Share Price ** NYSE (2019-07-23) in USD $213.08
United States of America Specialty Retail Industry PE Ratio Median Figure of 62 Publicly-Listed Specialty Retail Companies 14.19x
United States of America Market PE Ratio Median Figure of 3,083 Publicly-Listed Companies 17.8x

* 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)

= 213.08 ÷ 9.99

21.33x

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 21.33x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 29 Analysts
7%per year
United States of America Specialty Retail Industry PEG Ratio Median Figure of 55 Publicly-Listed Specialty Retail Companies 1.7x
United States of America Market PEG Ratio Median Figure of 2,118 Publicly-Listed Companies 1.58x

*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

= 21.33x ÷ 7%

3.05x

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 (2019-05-05) in USD $-1.95
NYSE:HD Share Price * NYSE (2019-07-23) in USD $213.08
United States of America Specialty Retail Industry PB Ratio Median Figure of 99 Publicly-Listed Specialty Retail Companies 1.32x
United States of America Market PB Ratio Median Figure of 5,249 Publicly-Listed Companies 1.78x
NYSE:HD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 213.08 ÷ -1.95

-109.47x

* Primary Listing of Home Depot.

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

  • Home Depot has negative assets, we can't compare the value of its assets 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 29 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
7%
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 29 Analysts 7%
NYSE:HD Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 29 Analysts 4.2%
United States of America Specialty Retail Industry Earnings Growth Rate Market Cap Weighted Average 9.9%
United States of America Specialty Retail Industry Revenue Growth Rate Market Cap Weighted Average 5.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
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 29 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
2024-01-31 131,087 17,952 14,846 4
2023-01-31 126,553 16,555 13,919 4
2022-01-31 121,829 15,420 12,621 11
2021-01-31 116,352 14,561 11,779 29
2020-01-31 111,332 14,093 11,100 29
NYSE:HD Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-05-05 109,637 13,632 11,230
2019-02-03 108,203 13,038 11,121
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

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Home Depot's earnings are expected to grow by 7% yearly, however this is not considered high growth (20% yearly).
  • Home Depot's revenue is expected to grow by 4.2% 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 29 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
2024-01-31 14.56 16.23 12.88 2.00
2023-01-31 13.32 14.41 12.22 2.00
2022-01-31 12.05 12.76 11.46 8.00
2021-01-31 11.00 11.44 10.72 23.00
2020-01-31 10.11 10.28 10.03 23.00
NYSE:HD Past Financials Data
Date (Data in USD Millions) EPS *
2019-05-05 9.99
2019-02-03 9.78
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

*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.
  • Unable to establish if Home Depot will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
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 1/6, 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 (23.7% vs 13.4%)
  • Home Depot's earnings growth has exceeded the US Specialty Retail industry average in the past year (23.7% vs 11.1%).
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
2019-05-05 109,637.00 11,230.00 19,674.00
2019-02-03 108,203.00 11,121.00 19,513.00
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 18,112.00
2018-01-28 100,904.00 8,630.00 17,694.00
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

*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.
  • It is difficult to establish if Home Depot has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • 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 5/6, 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.
  • Home Depot has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
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
2019-05-05 -2,143.00 27,204.00 1,882.00
2019-02-03 -1,878.00 28,153.00 1,778.00
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
  • Home Depot has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if Home Depot's debt level has increased considering it has negative shareholder equity.
  • Debt is well covered by operating cash flow (48.2%, 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
2.55%
Current annual income from Home Depot dividends. Estimated to be 2.82% next year.
If you bought $2,000 of Home Depot shares you are expected to receive $51 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 (1.44%).
  • Home Depot's dividend is below the markets top 25% of dividend payers in United States of America (3.77%).
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 29 Analyst Estimates (S&P Global) See Below
United States of America Specialty Retail Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 2.1%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

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
2024-01-31 7.49 2.00
2023-01-31 6.83 2.00
2022-01-31 6.57 9.00
2021-01-31 5.92 15.00
2020-01-31 5.47 15.00
NYSE:HD Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-23 5.440 2.656
2019-03-28 5.440 2.743
2019-02-26 5.440 2.938
2018-11-15 4.120 2.324
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

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 (2.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x 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 0.8%) - 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 $11,366,662
AGE 61
TENURE AS CEO 4.7 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, both up more than 20%.
  • 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:

10.8
Average Tenure
61.5
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
$11M
AGE
61
TENURE
4.7 yrs

Carol Tomé

TITLE
CFO & Executive VP of Corporate Services
COMPENSATION
$7M
AGE
62
TENURE
18.2 yrs

Matthew Carey

TITLE
Executive VP & Chief Information Officer
COMPENSATION
$4M
AGE
54
TENURE
10.8 yrs

Mark Holifield

TITLE
Executive VP of Supply Chain & Product Development
COMPENSATION
$4M
AGE
63
TENURE
13 yrs

Ted Decker

TITLE
Executive Vice President of Merchandising
COMPENSATION
$4M
AGE
56
TENURE
12.8 yrs

Isabel Janci

TITLE
VP of Investor Relations & Treasurer
TENURE
1.4 yrs

Teresa Roseborough

TITLE
Executive VP
AGE
60
TENURE
7.7 yrs

Stephen Holmes

TITLE
Vice President of Corporate Communications

Timothy Hourigan

TITLE
Executive Vice President of Human Resources
AGE
62
TENURE
2.1 yrs

Bill Lennie

TITLE
Executive Vice President of Outside Sales & Service
AGE
63
TENURE
15.9 yrs
Board of Directors Tenure

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

5.3
Average Tenure
60.5
Average Age
  • The tenure for the Home Depot board of directors is about average.
Board of Directors

Craig Menear

TITLE
Chairman
COMPENSATION
$11M
AGE
61
TENURE
4.4 yrs

Ari Bousbib

TITLE
Independent Director
COMPENSATION
$300K
AGE
58
TENURE
11.7 yrs

Al Carey

TITLE
Independent Director
COMPENSATION
$300K
AGE
67
TENURE
11.4 yrs

Joseph Brown

TITLE
Independent Director
COMPENSATION
$315K
AGE
62
TENURE
8.1 yrs

Helena Foulkes

TITLE
Independent Director
COMPENSATION
$295K
AGE
55
TENURE
5.8 yrs

Greg Brenneman

TITLE
Independent Lead Director
COMPENSATION
$360K
AGE
57
TENURE
5.2 yrs

Wayne Hewett

TITLE
Independent Director
COMPENSATION
$293K
AGE
54
TENURE
5.5 yrs

Gerard Arpey

TITLE
Independent Director
COMPENSATION
$295K
AGE
60
TENURE
3.9 yrs

Linda Gooden

TITLE
Independent Director
COMPENSATION
$290K
AGE
66
TENURE
3.8 yrs

Jeff Boyd

TITLE
Independent Director
COMPENSATION
$295K
AGE
62
TENURE
2.8 yrs
Who owns this company?
Recent Insider Trading
  • Home Depot individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
31. May 19 Sell Teresa Roseborough Individual 28. May 19 28. May 19 -8,500 $194.38 $-1,652,230
28. May 19 Sell William Lennie Individual 23. May 19 23. May 19 -1,250 $189.16 $-236,450
06. Mar 19 Sell Ann-Marie Campbell Individual 05. Mar 19 05. Mar 19 -5,450 $184.67 $-1,006,452
01. Mar 19 Sell Mark Holifield Individual 28. Feb 19 28. Feb 19 -12,000 $183.60 $-2,203,200
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
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

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

According to my valuation model, Home Depot seems to be fairly priced at around 6.5% below my intrinsic value, which means if you buy Home Depot today, you’d be paying a fair price for it. … Since Home Depot’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. … HD’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value.

Simply Wall St -

Should We Worry About The Home Depot, Inc.'s (NYSE:HD) P/E Ratio?

The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Home Depot: P/E of 21.22 = $212 ÷ $9.99 (Based on the trailing twelve months to May 2019.) Is A High Price-to-Earnings Ratio Good? … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' How Does Home Depot's P/E Ratio Compare To Its Peers? … How Does Home Depot's Debt Impact Its P/E Ratio?

Simply Wall St -

Should You Like The Home Depot, Inc.’s (NYSE:HD) High Return On Capital Employed?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Home Depot: 0.50 = US$16b ÷ (US$52b - US$20b) (Based on the trailing twelve months to May 2019.) So, Home Depot has an ROCE of 50%. … Home Depot's Current Liabilities And Their Impact On Its ROCE Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Should The Home Depot, Inc. (NYSE:HD) Be Part Of Your Dividend Portfolio?

Home Depot has been growing its dividend quite rapidly, which is exciting. … Dividend Growth Potential The other half of the dividend investing equation is evaluating whether earnings per share (EPS) are growing. Over the long term, dividends need to grow at or above the rate of inflation, in order to maintain the recipient's purchasing power. It's good to see Home Depot has been growing its earnings per share at 21% a year over the past 5 years. Earnings per share have rocketed in recent times, and we like that the company is retaining more than half of its earnings to reinvest. However, always remember that very few companies can grow at double digit rates forever. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. … Companies that are growing earnings tend to be the best dividend stocks over the long term.

Simply Wall St -

The Home Depot, Inc. (NYSE:HD) Insiders Have Been Selling

View our latest analysis for Home Depot Home Depot Insider Transactions Over The Last Year In the last twelve months, the biggest single sale by an insider was when the Executive VP of Supply Chain &amp; Product Development, Mark Holifield, sold US$2.2m worth of shares at a price of US$184 per share. … Home Depot Insiders Are Selling The Stock The last quarter saw substantial insider selling of Home Depot shares. … Insider Ownership For a common shareholder, it is worth checking how many shares are held by company insiders.

Simply Wall St -

Does The Home Depot, Inc.'s (NYSE:HD) CEO Pay Compare Well With Peers?

View our latest analysis for Home Depot How Does Craig Menear's Compensation Compare With Similar Sized Companies? … has a market cap of US$218b, and is paying total annual CEO compensation of US$11m. … We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$11m.

Simply Wall St -

If You Like EPS Growth Then Check Out Home Depot (NYSE:HD) Before It's Too Late

View our latest analysis for Home Depot How Fast Is Home Depot Growing? … While we note Home Depot's EBIT margins were flat over the last year, revenue grew by a solid 7.2% to US$108b. … You can't deny that Home Depot has grown its earnings per share at a very impressive rate.

Simply Wall St -

What Should You Know About The Future Of The Home Depot, Inc.'s (NYSE:HD)?

Looking at The Home Depot, Inc.'s (NYSE:HD) earnings update in February 2019, it seems that analyst forecasts are fairly bearish, as a 0.3% fall in profits is expected in the upcoming year compared with the past 5-year average growth rate of 13%. … View our latest analysis for Home Depot What can we expect from Home Depot in the longer term? … NYSE:HD Past and Future Earnings, May 11th 2019 From the current net income level of US$11b and the final forecast of US$13b by 2022, the annual rate of growth for HD’s earnings is 5.1%.

Simply Wall St -

A Look At The Fair Value Of The Home Depot, Inc. (NYSE:HD)

by taking the expected future cash flows and discounting them to today's value. … I will be using the Discounted Cash Flow (DCF) model. … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Do Institutions Own The Home Depot, Inc. (NYSE:HD) Shares?

Generally speaking, as a company grows, institutions will increase their ownership. … With a market capitalization of US$227b, Home Depot is rather large. … View our latest analysis for Home Depot

Simply Wall St -

HD Company Info

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 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.

Details
Name: The Home Depot, Inc.
HD
Exchange: NYSE
Founded: 1978
$234,448,961,974
1,100,286,099
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: 2019/07/24 01:33
End of day share price update: 2019/07/23 00:00
Last estimates confirmation: 2019/07/22
Last earnings filing: 2019/05/29
Last earnings reported: 2019/05/05
Last annual earnings reported: 2019/02/03


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.