HD Stock Overview
The Home Depot, Inc. operates as a home improvement retailer.
Home Depot Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$283.00|
|52 Week High||US$420.61|
|52 Week Low||US$264.51|
|1 Month Change||-8.25%|
|3 Month Change||-9.95%|
|1 Year Change||-9.77%|
|3 Year Change||36.08%|
|5 Year Change||84.49%|
|Change since IPO||15,080.76%|
Recent News & Updates
Adjustments To Home Depot's Compensation Targets May Suggest An Expected Slowdown
HD's 2022 proxy shows some notable changes around executive compensation targets. In 2021, the Board reduced the 3-year average operating profit target below the 1-year, implying an expectation of near-term profit contraction. This story has yet to play out. The board also reduced management's 3-year avg. ROIC target from 44.5% to 34%, company performance not seen since 2017. In late May '22, HD disclosed changes to their Management Incentive Plan that suggest increased levels of uncertainty around predicting company performance. The MIP changes give the comp. committee more time to set performance targets and may even allow them to lower targets if the business worsens unexpectedly.
I Built A List Of Growing Companies And Home Depot (NYSE:HD) Made The Cut
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Home Depot: Strong Brand And A Heavyweight In Home Improvement
Home Depot has a wide moat as a global brand and industry leader. It maintains a competitive advantage, but might be vulnerable given an innovative catalyst, a weakening customer satisfaction rating, or a powerful opponent encroaching on their market. The company has a resilient business with a powerful history of performance. The current macro environment has potential risks directly affecting some of the key drivers of Home Depot, like the housing market, disposable income, inflation, and residential construction. The fair value price is $231, according to outlined assumptions.
|HD||US Specialty Retail||US Market|
Return vs Industry: HD exceeded the US Specialty Retail industry which returned -26.6% over the past year.
Return vs Market: HD exceeded the US Market which returned -18.4% over the past year.
|HD Average Weekly Movement||4.8%|
|Specialty Retail Industry Average Movement||8.9%|
|Market Average Movement||8.1%|
|10% most volatile stocks in US Market||16.6%|
|10% least volatile stocks in US Market||3.2%|
Stable Share Price: HD is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: HD's weekly volatility (5%) has been stable over the past year.
About the Company
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 facilities maintenance, repair, and operations products The company also offers installation services for flooring, cabinets and cabinet makeovers, countertops, furnaces and central air systems, and windows. In addition, it provides tool and equipment rental services.
Home Depot Fundamentals Summary
|HD fundamental statistics|
Is HD overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|HD income statement (TTM)|
|Cost of Revenue||US$101.33b|
Last Reported Earnings
May 01, 2022
Next Earnings Date
Aug 16, 2022
|Earnings per share (EPS)||16.07|
|Net Profit Margin||10.83%|
How did HD perform over the long term?See historical performance and comparison
2.7%Current Dividend Yield
Is HD undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 4/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for HD?
Other financial metrics that can be useful for relative valuation.
|What is HD's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does HD's PE Ratio compare to its peers?
|HD PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
Price-To-Earnings vs Peers: HD is good value based on its Price-To-Earnings Ratio (17.6x) compared to the peer average (30.8x).
Price to Earnings Ratio vs Industry
How does HD's PE Ratio compare vs other companies in the U.S. Specialty Retail Industry?
Price-To-Earnings vs Industry: HD is expensive based on its Price-To-Earnings Ratio (17.6x) compared to the US Specialty Retail industry average (6.4x)
Price to Earnings Ratio vs Fair Ratio
What is HD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||17.6x|
|Fair PE Ratio||21x|
Price-To-Earnings vs Fair Ratio: HD is good value based on its Price-To-Earnings Ratio (17.6x) compared to the estimated Fair Price-To-Earnings Ratio (21x).
Share Price vs Fair Value
What is the Fair Price of HD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: HD ($283) is trading below our estimate of fair value ($382.16)
Significantly Below Fair Value: HD is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: HD is poor value based on its PEG Ratio (4.1x)
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How is Home Depot forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HD's forecast earnings growth (4.3% per year) is above the savings rate (1.9%).
Earnings vs Market: HD's earnings (4.3% per year) are forecast to grow slower than the US market (13.9% per year).
High Growth Earnings: HD's earnings are forecast to grow, but not significantly.
Revenue vs Market: HD's revenue (3.2% per year) is forecast to grow slower than the US market (8.4% per year).
High Growth Revenue: HD's revenue (3.2% 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 (184.8%).
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How has Home Depot performed over the past 5 years?
Past Performance Score3/6
Past Performance Score 3/6
Growing Profit Margin
Earnings vs Industry
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 (10.4%).
Past Earnings Growth Analysis
Earnings Trend: HD's earnings have grown by 14.1% per year over the past 5 years.
Accelerating Growth: HD's earnings growth over the past year (12%) is below its 5-year average (14.1% per year).
Earnings vs Industry: HD earnings growth over the past year (12%) underperformed the Specialty Retail industry 40.3%.
Return on Equity
High ROE: HD's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
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How is Home Depot's financial position?
Financial Health Score2/6
Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
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 (36.1%).
Interest Coverage: HD's interest payments on its debt are well covered by EBIT (17.5x coverage).
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What is Home Depot current dividend yield, its reliability and sustainability?
Dividend Score 5/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HD's dividend (2.69%) is higher than the bottom 25% of dividend payers in the US market (1.57%).
High Dividend: HD's dividend (2.69%) is low compared to the top 25% of dividend payers in the US market (4.24%).
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.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (44.9%), HD's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonable cash payout ratio (69.1%), HD's dividend payments are covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ted Decker (58 yo)
Mr. Edward P. Decker, also known as Ted, has been the President of The Home Depot, Inc. since October 5, 2020, and served as its Chief Operating Officer since October 2020 until February 2022 and has been...
CEO Compensation Analysis
Compensation vs Market: Ted's total compensation ($USD8.15M) is below average for companies of similar size in the US market ($USD13.44M).
Compensation vs Earnings: Ted's compensation has increased by more than 20% in the past year.
Experienced Management: HD's management team is considered experienced (2.4 years average tenure).
Experienced Board: HD's board of directors are considered experienced (7.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: HD insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
The Home Depot, Inc.'s employee growth, exchange listings and data sources
- Name: The Home Depot, Inc.
- Ticker: HD
- Exchange: NYSE
- Founded: 1978
- Industry: Home Improvement Retail
- Sector: Retail
- Implied Market Cap: US$290.855b
- Shares outstanding: 1.03b
- Website: https://www.homedepot.com
Number of Employees
- The Home Depot, Inc.
- 2455 Paces Ferry Road
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/06/26 00:00|
|End of Day Share Price||2022/06/24 00:00|
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.