HD Stock Analysis: The Home Depot | NYSE
Home Improvement Retail | NYSE, USA | Market Cap: 307.528m USD | 12M Return: -13.4% | US4370761029 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 1.56B
EPS Trend: -67.1%
Qual. Beats: 1
Rev. Trend: 94.1%
Qual. Beats: 1
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
The Home Depot, Inc. is a large-format home improvement retailer operating in the United States and internationally, selling building materials, home improvement, lawn and garden, and décor products, as well as maintenance, repair, and operations supplies. The company complements its merchandise with installation services (covering items such as flooring, cabinets, countertops, HVAC systems, and windows) and tool and equipment rentals. Its customer base spans do-it-yourself homeowners, do-it-for-me customers, and a broad range of professionals, including contractors, remodelers, property managers, electricians, plumbers, roofers, and landscapers. Founded in 1978 and headquartered in Atlanta, Georgia, Home Depot distributes through both physical stores and a portfolio of branded websites and mobile apps, including homedepot.com, hdsupply.com, and SRS Distribution.
The home improvement retail sector is closely tied to the housing market, with demand influenced by existing home sales, renovation activity, and consumer spending on home projects. Within this sector, Home Depot follows a big-box omnichannel model that combines large physical stores with extensive e-commerce platforms, while also serving the professional contractor segment-a higher-frequency, higher-ticket customer group that distinguishes the companys mix from purely DIY-focused retailers.
- Rising mortgage rates pressure big-ticket comparable sales
- SRS Distribution acquisition expands pro customer revenue base
- Lowes price competition and freight costs squeeze margins
| Net Income: 14.2b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.14 > 0.02 and ΔFCF/TA -0.42 > 1.0 |
| NWC/Revenue: 1.61% < 20% (prev 2.75%; Δ -1.14% < -1%) |
| CFO/TA 0.17 > 3% & CFO 18.8b > Net Income 14.2b |
| Net Debt (70.2b) to EBITDA (25.5b): 2.75 < 3 |
| Current Ratio: 1.08 > 1.5 & < 3 |
| Outstanding Shares: last quarter (996.0m) vs 12m ago 0.20% < -2% |
| Gross Margin: 33.21% > 18% (prev 33.35%; Δ -0.14% > 0.5%) |
| Asset Turnover: 161.6% > 50% (prev 165.0%; Δ -3.42% > 0%) |
| Interest Coverage Ratio: 8.76 > 6 (EBIT TTM 21.2b / Interest Expense TTM 2.42b) |
| A: 0.02 (Total Current Assets 37.7b - Total Current Liabilities 35.0b) / Total Assets 109b |
| B: 0.90 (Retained Earnings 97.9b / Total Assets 109b) |
| C: 0.20 (EBIT TTM 21.2b / Avg Total Assets 105b) |
| D: 0.18 (Book Value of Equity 16.6b / Total Liabilities 92.8b) |
| Altman-Z'' = 4.63 = AA |
| DSRI: 1.16 (Receivables 6.96b/5.88b, Revenue 169b/165b) |
| GMI: 1.00 (GM 33.35% / 33.21%) |
| AQI: 1.08 (AQ_t 0.31 / AQ_t-1 0.29) |
| SGI: 1.02 (Revenue 169b / 165b) |
| TATA: -0.04 (NI 14.2b - CFO 18.8b) / TA 109b) |
| Beneish M = -2.84 (Cap -4..+1) = A |
As of October 23, 2026, the stock is trading at USD 327.73 with a total of 5,466,877 shares traded. Over the past week, the price has changed by +6.32%, over one month by +7.33%, over three months by -0.39% and over the past year by -13.36%.
Current recommended Stop Loss: 314.50 (which is 4% or 2 ATR below the current price).
The Home Depot has received a consensus analysts rating of 4.11. Therefore, it is recommended to buy HD.
- StrongBuy: 18
- Buy: 4
- Hold: 14
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 379.8 | 15.9% |
P/E Trailing = 21.4502
P/E Forward = 19.7628
P/S = 1.8178
P/B = 17.8152
P/EG = 2.504
Revenue TTM = 169b USD
EBIT TTM = 21.2b USD
EBITDA TTM = 25.5b USD
Long Term Debt = 44.0b USD (from longTermDebt, last quarter)
Short Term Debt = 10.5b USD (from shortTermDebt, last quarter)
Debt = 72.2b USD (from shortLongTermDebtTotal, last quarter) + Leases 9.67b
Net Debt = 70.2b USD (calculated: Debt 72.2b - CCE 2.08b)
Enterprise Value = 378b USD (308b + Debt 72.2b - CCE 2.08b)
Interest Coverage Ratio = 8.76 (Ebit TTM 21.2b / Interest Expense TTM 2.42b)
EV/FCF = 25.01x (Enterprise Value 378b / FCF TTM 15.1b)
FCF Yield = 4.00% (FCF TTM 15.1b / Enterprise Value 378b)
FCF Margin = 8.93% (FCF TTM 15.1b / Revenue TTM 169b)
Net Margin = 8.41% (Net Income TTM 14.2b / Revenue TTM 169b)
Gross Margin = 33.21% ((Revenue TTM 169b - Cost of Revenue TTM 113b) / Revenue TTM)
Gross Margin QoQ = 33.67% (prev 33.00%)
Tobins Q-Ratio = 3.45 (Enterprise Value 378b / Total Assets 109b)
Interest Expense / Debt = 3.34% (Interest Expense 2.42b / Debt 72.2b)
Taxrate = 24.11% (4.52b / 18.7b)
NOPAT = 16.1b (EBIT 21.2b * (1 - 24.11%))
Current Ratio = 1.08 (Total Current Assets 37.7b / Total Current Liabilities 35.0b)
Debt / Equity = 4.35 (Debt 72.2b / totalStockholderEquity, last quarter 16.6b)
Debt / EBITDA = 2.75 (Net Debt 70.2b / EBITDA 25.5b)
Debt / FCF = 4.65 (Net Debt 70.2b / FCF TTM 15.1b)
Total Stockholder Equity = 13.9b (last 4 quarters mean from totalStockholderEquity)
RoA = 13.59% (Net Income 14.2b / Total Assets 109b)
RoE = 102.7% (Net Income TTM 14.2b / Total Stockholder Equity 13.9b)
RoCE = 36.61% (EBIT 21.2b / Capital Employed (Equity 13.9b + L.T.Debt 44.0b))
RoIC = 19.40% (NOPAT 16.1b / Invested Capital 82.8b)
WACC = 6.78% (E(308b)/V(380b) * Re(7.78%) + D(72.2b)/V(380b) * Rd(3.34%) * (1-Tc(0.24)))
Discount Rate = 7.78% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 91.39 | Cagr: 0.18%
[DCF] Terminal Value 76.21% ; FCFF base≈14.8b ; Y1≈15.6b ; Y5≈18.2b
[DCF] Fair Price = 210.6 (EV 280b - Net Debt 70.2b = Equity 210b / Shares 997.7m; r=8.35% [WACC [floored]]; 5y FCF grow 6.12% → 2.50% )
EPS Correlation: -67.10 | EPS CAGR: -1.24% | SUE: 2.48 | # QB: 1
Revenue Correlation: 94.09 | Revenue CAGR: 4.39% | SUE: 2.00 | # QB: 1
EPS current Quarter (2026-10-31): EPS=3.84 | Chg30d=-0.06% | Revisions=-17% | Analysts=30
EPS current Year (2027-01-31): EPS=15.02 | Chg30d=+0.01% | Revisions=+17% | GrowthEPS=+2.3% | GrowthRev=+4.2%
EPS next Year (2028-01-31): EPS=15.99 | Chg30d=-0.30% | Revisions=-50% | GrowthEPS=+6.4% | GrowthRev=+3.4%
[Analyst] Revisions Ratio: -25% (up=3, down=6)