(HD) Home Depot - Ratings and Ratios
BuildingMaterials, HomeImprovement, LawnGarden, DécorProducts, RentalEquipment
HD EPS (Earnings per Share)
HD Revenue
Description: HD Home Depot
Home Depot Inc (NYSE:HD) is a leading home improvement retailer operating in the United States and internationally, offering a wide range of products and services catering to both DIY homeowners and professional contractors. The companys diverse product portfolio includes building materials, home improvement products, lawn and garden products, and décor products, as well as installation services for various home improvement projects.
From a business perspective, Home Depots revenue streams are diversified across various channels, including online sales through its websites and mobile applications, as well as brick-and-mortar stores. The companys e-commerce platforms, such as homedepot.com, homedepot.ca, and homedepot.com.mx, provide customers with a seamless shopping experience. Additionally, the companys acquisition of online retailers like Blinds.com and The Company Store has expanded its online presence.
Key performance indicators (KPIs) that can be used to evaluate Home Depots performance include same-store sales growth, online sales growth, and gross margin expansion. The companys ability to maintain a strong balance sheet, with a healthy debt-to-equity ratio, is also crucial. As of the latest available data, Home Depots return on equity (ROE) stands at 236.10%, indicating a strong return on shareholder investment. Furthermore, the companys dividend yield and payout ratio can be used to assess its attractiveness to income-seeking investors.
From a valuation perspective, Home Depots price-to-earnings (P/E) ratio of 25.34 and forward P/E ratio of 24.75 suggest that the stock is reasonably valued compared to its earnings growth prospects. The companys market capitalization stands at approximately $373.7 billion, reflecting its position as one of the largest home improvement retailers in the United States.
HD Stock Overview
| Market Cap in USD | 384,211m |
| Sector | Consumer Cyclical |
| Industry | Home Improvement Retail |
| GiC Sub-Industry | Home Improvement Retail |
| IPO / Inception | 1981-09-22 |
HD Stock Ratings
| Growth Rating | 33.4 |
| Fundamental | 63.5% |
| Dividend Rating | 67.3 |
| Rel. Strength | -4.94 |
| Analysts | 4.18 of 5 |
| Fair Price Momentum | 375.87 USD |
| Fair Price DCF | 281.95 USD |
HD Dividends
| Dividend Yield 12m | 2.38% |
| Yield on Cost 5y | 3.64% |
| Annual Growth 5y | 8.45% |
| Payout Consistency | 99.7% |
| Payout Ratio | 61.3% |
HD Growth Ratios
| Growth Correlation 3m | 30.2% |
| Growth Correlation 12m | -33% |
| Growth Correlation 5y | 74% |
| CAGR 5y | 9.20% |
| CAGR/Max DD 5y | 0.26 |
| Sharpe Ratio 12m | -0.13 |
| Alpha | -0.76 |
| Beta | 0.626 |
| Volatility | 20.38% |
| Current Volume | 1964.1k |
| Average Volume 20d | 3089.8k |
| Stop Loss | 375.9 (-3%) |
Piotroski VR‑10 (Strict, 0-10) 5.0
| Net Income (14.64b TTM) > 0 and > 6% of Revenue (6% = 9.78b TTM) |
| FCFTA 0.15 (>2.0%) and ΔFCFTA -7.25pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 1.80% (prev 5.44%; Δ -3.64pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.19 (>3.0%) and CFO 18.64b > Net Income 14.64b (YES >=105%, WARN >=100%) |
| Net Debt (59.92b) to EBITDA (25.64b) ratio: 2.34 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.09 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (994.0m) change vs 12m ago 0.20% (target <= -2.0% for YES) |
| Gross Margin 33.34% (prev 33.48%; Δ -0.14pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 182.7% (prev 191.6%; Δ -8.94pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 8.86 (EBITDA TTM 25.64b / Interest Expense TTM 2.45b) >= 6 (WARN >= 3) |
Altman Z'' 5.85
| (A) 0.03 = (Total Current Assets 34.53b - Total Current Liabilities 31.59b) / Total Assets 99.16b |
| (B) 0.91 = Retained Earnings (Balance) 90.68b / Total Assets 99.16b |
| warn (B) unusual magnitude: 0.91 — check mapping/units |
| (C) 0.24 = EBIT TTM 21.72b / Avg Total Assets 89.19b |
| (D) 0.98 = Book Value of Equity 89.77b / Total Liabilities 91.20b |
| Total Rating: 5.85 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 63.49
| 1. Piotroski 5.0pt = 0.0 |
| 2. FCF Yield 3.48% = 1.74 |
| 3. FCF Margin 9.32% = 2.33 |
| 4. Debt/Equity 6.74 = -2.50 |
| 5. Debt/Ebitda 2.09 = -0.18 |
| 6. ROIC - WACC 20.12% = 12.50 |
| 7. RoE 236.1% = 2.50 |
| 8. Rev. Trend 2.12% = 0.11 |
| 9. Rev. CAGR -3.09% = -0.52 |
| 10. EPS Trend -45.01% = -1.13 |
| 11. EPS CAGR -11.00% = -1.38 |
As of August 13, 2025, the stock is trading at USD 387.53 with a total of 1,964,060 shares traded.
Over the past week, the price has changed by +1.76%, over one month by +4.72%, over three months by +3.54% and over the past year by +14.77%.
Neither. Based on ValueRay´s Fundamental Analyses, Home Depot is currently (August 2025) neither a good nor a bad stock to buy. It has a ValueRay Fundamental Rating of 63.49 and therefor a neutral outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of HD is around 375.87 USD . This means that HD is currently overvalued and has a potential downside of -3.01%.
Home Depot has received a consensus analysts rating of 4.18. Therefore, it is recommended to buy HD.
- Strong Buy: 21
- Buy: 5
- Hold: 12
- Sell: 1
- Strong Sell: 0
According to our own proprietary Forecast Model, HD Home Depot will be worth about 414.6 in August 2026. The stock is currently trading at 387.53. This means that the stock has a potential upside of +6.99%.
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 423.4 | 9.2% |
| Analysts Target Price | 419 | 8.1% |
| ValueRay Target Price | 414.6 | 7% |
HD Fundamental Data Overview
CCE Cash And Equivalents = 1.37b USD (last quarter)
P/E Trailing = 26.2522
P/E Forward = 25.7732
P/S = 2.3578
P/B = 48.2981
P/EG = 4.5211
Beta = 1.0
Revenue TTM = 162.95b USD
EBIT TTM = 21.72b USD
EBITDA TTM = 25.64b USD
Long Term Debt = 47.34b USD (from longTermDebt, last quarter)
Short Term Debt = 6.23b USD (from shortTermDebt, last quarter)
Debt = 53.58b USD (Calculated: Short Term 6.23b + Long Term 47.34b)
Net Debt = 59.92b USD (from netDebt column, last quarter)
Enterprise Value = 436.42b USD (384.21b + Debt 53.58b - CCE 1.37b)
Interest Coverage Ratio = 8.86 (Ebit TTM 21.72b / Interest Expense TTM 2.45b)
FCF Yield = 3.48% (FCF TTM 15.19b / Enterprise Value 436.42b)
FCF Margin = 9.32% (FCF TTM 15.19b / Revenue TTM 162.95b)
Net Margin = 8.98% (Net Income TTM 14.64b / Revenue TTM 162.95b)
Gross Margin = 33.34% ((Revenue TTM 162.95b - Cost of Revenue TTM 108.62b) / Revenue TTM)
Tobins Q-Ratio = 4.86 (Enterprise Value 436.42b / Book Value Of Equity 89.77b)
Interest Expense / Debt = 1.15% (Interest Expense 615.0m / Debt 53.58b)
Taxrate = 23.70% (from yearly Income Tax Expense: 4.60b / 19.41b)
NOPAT = 16.57b (EBIT 21.72b * (1 - 23.70%))
Current Ratio = 1.09 (Total Current Assets 34.53b / Total Current Liabilities 31.59b)
Debt / Equity = 6.74 (Debt 53.58b / last Quarter total Stockholder Equity 7.96b)
Debt / EBITDA = 2.09 (Net Debt 59.92b / EBITDA 25.64b)
Debt / FCF = 3.53 (Debt 53.58b / FCF TTM 15.19b)
Total Stockholder Equity = 6.20b (last 4 quarters mean)
RoA = 14.76% (Net Income 14.64b, Total Assets 99.16b )
RoE = 236.1% (Net Income TTM 14.64b / Total Stockholder Equity 6.20b)
RoCE = 40.56% (Ebit 21.72b / (Equity 6.20b + L.T.Debt 47.34b))
RoIC = 27.53% (NOPAT 16.57b / Invested Capital 60.19b)
WACC = 7.41% (E(384.21b)/V(437.79b) * Re(8.32%)) + (D(53.58b)/V(437.79b) * Rd(1.15%) * (1-Tc(0.24)))
Shares Correlation 5-Years: -90.0 | Cagr: -1.15%
Discount Rate = 8.32% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 76.84% ; FCFE base≈16.27b ; Y1≈16.18b ; Y5≈16.93b
Fair Price DCF = 281.9 (DCF Value 280.52b / Shares Outstanding 994.9m; 5y FCF grow -1.26% → 2.90% )
Revenue Correlation: 2.12 | Revenue CAGR: -3.09%
Revenue Growth Correlation: 86.91%
EPS Correlation: -45.01 | EPS CAGR: -11.00%
EPS Growth Correlation: 73.59%
Additional Sources for HD Stock
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