NYSE:HD

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-0.8%

NYSE:HD

-0.7%

US Specialty Retail

1.1%

US Market


1 Year Return

10.8%

NYSE:HD

-4.0%

US Specialty Retail

2.1%

US Market

HD outperformed the Specialty Retail industry which returned -3.5% over the past year.

HD outperformed the Market in United States of America which returned 2% over the past year.


Share holder returns

HDIndustryMarket
7 Day-0.8%-0.7%1.1%
30 Day13.4%8.3%3.7%
90 Day11.3%3.9%2.3%
1 Year13.8%10.8%-2.4%-4.0%4.4%2.1%
3 Year96.3%82.9%35.8%28.8%47.0%37.4%
5 Year181.0%151.4%54.3%40.6%61.6%43.8%

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

Valuation

Is Home Depot undervalued based on future cash flows and its price relative to the stock market?

22.93x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Home Depot's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Home Depot's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

Home Depot is poor value based on expected growth next year.


Price Based on Value of Assets

Home Depot has negative assets, we can't compare the value of its assets to the US Specialty Retail industry average.


Next Steps

Future Growth

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

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Home Depot's revenue is expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).

Home Depot's earnings are expected to grow by 6.5% yearly, however this is not considered high growth (20% yearly).

Home Depot's revenue growth is positive but not above the United States of America market average.

Home Depot's earnings growth is positive but not above the United States of America market average.

Home Depot's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Home Depot is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Home Depot performed over the past 5 years?

13.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Home Depot's year on year earnings growth rate has been positive over the past 5 years.

Home Depot's 1-year earnings growth is less than its 5-year average (13.2% vs 13.3%)

Home Depot's earnings growth has exceeded the US Specialty Retail industry average in the past year (13.2% vs 8.3%).


Return on Equity

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.


Return on Assets

Home Depot used its assets more efficiently than the US Specialty Retail industry average last year based on Return on Assets.


Return on Capital Employed

Home Depot has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Home Depot's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

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 (49.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 15.5x coverage).


Balance Sheet

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.


Next Steps

Dividend

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

2.59%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Home Depot's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Home Depot's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

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

Dividends paid are covered by earnings (2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.9x coverage).


Next Steps

Management

What is the CEO of Home Depot's salary, the management and board of directors tenure and is there insider trading?

7.8yrs

Average management tenure


CEO

Craig Menear (61yo)

4.8yrs

Tenure

US$11,366,662

Compensation

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 Direc ...


CEO Compensation Analysis

Craig's remuneration is about average for companies of similar size in United States of America.

Craig's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

7.8yrs

Average Tenure

61yo

Average Age

The average tenure for the Home Depot management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.5yrs

Average Tenure

60.5yo

Average Age

The tenure for the Home Depot board of directors is about average.


Insider Trading

Home Depot individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$2,024,46023 Aug 19
William Lennie
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Outside Sales & Service
Shares9,200
Max PriceUS$220.05
SellUS$1,101,00023 Aug 19
Ann-Marie Campbell
EntityIndividual
Shares5,000
Max PriceUS$220.20
SellUS$12,134,81623 Aug 19
Carol Tomé
EntityIndividual
Shares55,400
Max PriceUS$219.04
SellUS$1,652,23031 May 19
Teresa Roseborough
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares8,500
Max PriceUS$194.38
SellUS$236,45028 May 19
William Lennie
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Outside Sales & Service
Shares1,250
Max PriceUS$189.16
SellUS$1,006,45206 Mar 19
Ann-Marie Campbell
EntityIndividual
Shares5,450
Max PriceUS$184.67
SellUS$2,203,20001 Mar 19
Mark Holifield
EntityIndividual
Role
Senior Key Executive
Executive VP of Supply Chain & Product Development
Shares12,000
Max PriceUS$183.60
SellUS$461,90211 Dec 18
Teresa Roseborough
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares2,603
Max PriceUS$177.45
SellUS$374,53630 Nov 18
Ann-Marie Campbell
EntityIndividual
Shares2,166
Max PriceUS$175.73
BuyUS$42,40521 Nov 18
Wayne Hewett
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares250
Max PriceUS$169.62
BuyUS$169,33021 Nov 18
Manuel Kadre
EntityIndividual
Shares1,000
Max PriceUS$169.33
BuyUS$2,004,10521 Nov 18
Mark Vadon
EntityIndividual
Shares11,500
Max PriceUS$174.27
BuyUS$354,96016 Nov 18
Manuel Kadre
EntityIndividual
Shares2,000
Max PriceUS$177.48

Ownership Breakdown


Management Team

  • Bill Lennie (63yo)

    Executive Vice President of Outside Sales & Service

    • Tenure: 16.1yrs
  • Craig Menear (61yo)

    Chairman

    • Tenure: 4.8yrs
    • Compensation: US$11.37m
  • Mark Holifield (63yo)

    Executive VP of Supply Chain & Product Development

    • Tenure: 13.2yrs
    • Compensation: US$4.01m
  • Matthew Carey (54yo)

    Executive VP & Chief Information Officer

    • Tenure: 11yrs
    • Compensation: US$3.88m
  • Ted Decker (56yo)

    Executive Vice President of Merchandising

    • Tenure: 12.9yrs
    • Compensation: US$3.99m
  • Isabel Janci

    VP of Investor Relations & Treasurer

    • Tenure: 1.6yrs
  • Teresa Roseborough (60yo)

    Executive VP

    • Tenure: 7.8yrs
  • Richard McPhail

    CFO & Executive VP

    • Tenure: 0.08yrs
  • Stephen Holmes

    Vice President of Corporate Communications

    • Tenure: 0yrs
  • Timothy Hourigan (62yo)

    Executive Vice President of Human Resources

    • Tenure: 2.3yrs

Board Members

  • Gerard Arpey (60yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$295.00k
  • Greg Brenneman (57yo)

    Independent Lead Director

    • Tenure: 5.3yrs
    • Compensation: US$360.00k
  • Ari Bousbib (58yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$300.00k
  • Jeff Boyd (62yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$295.00k
  • Al Carey (67yo)

    Independent Director

    • Tenure: 11.6yrs
    • Compensation: US$300.00k
  • Helena Foulkes (55yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$295.00k
  • Craig Menear (61yo)

    Chairman

    • Tenure: 4.8yrs
    • Compensation: US$11.37m
  • Wayne Hewett (54yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$292.50k
  • Linda Gooden (66yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$290.00k
  • Joseph Brown (62yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$315.00k

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$252.969b
  • Shares outstanding: 1.10b
  • Website: https://www.homedepot.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HDNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 1981
HD *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNSep 1981
HDIXTRA (XETRA Trading Platform)YesCommon StockDEEURSep 1981
HDIDB (Deutsche Boerse AG)YesCommon StockDEEURSep 1981
HDSNSE (Santiago Stock Exchange)YesCommon StockCLUSDSep 1981
HDSWX (SIX Swiss Exchange)YesCommon StockCHCHFSep 1981
HDWBAG (Wiener Boerse AG)YesCommon StockATEURSep 1981
HDBASE (Buenos Aires Stock Exchange)CEDEAR EACH REPR 1/4 COM STK USD0.05ARARSSep 2001
HOME34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 0.5 COM USD0.05BRBRLAug 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/16 23:36
End of Day Share Price2019/09/16 00:00
Earnings2019/08/04
Annual Earnings2019/02/03


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.