HD Stock Analysis: The Home Depot | NYSE
Home Improvement Retail | NYSE, USA | Market Cap: 347.017m USD | 12M Return: -8.3% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 1.43B
EPS Trend: -76.1%
Qual. Beats: 0
Rev. Trend: 89.2%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 10.5 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. (HD) is a U.S.-based home improvement retailer operating in the Consumer Discretionary sector, with operations also extending to Canada and Mexico. The company sells building materials, home improvement products, lawn and garden supplies, décor, and maintenance, repair, and operations (MRO) products. Its business model combines traditional big-box retail with a services component, offering installation services across categories such as flooring, HVAC, cabinetry, countertops, and window coverings, as well as tool and equipment rentals. Revenue is generated through two primary customer segments: do-it-yourself (DIY) consumers and do-it-for-me (DIFM) customers, alongside professional contractors, builders, and specialty tradespeople. The companys distribution channels include approximately 2,000 physical stores and a portfolio of branded websites, including homedepot.com, hdsupply.com, and specialty sites for window coverings, pool and landscape supplies, and roofing and building materials. The Home Depot was incorporated in 1978 and is headquartered in Atlanta, Georgia.
- Mortgage rates decline, reigniting home improvement demand
- Pro customer segment expansion drives comp sales growth
- Tariff costs continue pressuring gross margins
| Net Income: 14.0b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.13 > 0.02 and ΔFCF/TA -2.06 > 1.0 |
| NWC/Revenue: 0.96% < 20% (prev 1.80%; Δ -0.85% < -1%) |
| CFO/TA 0.17 > 3% & CFO 18.0b > Net Income 14.0b |
| Net Debt (66.0b) to EBITDA (24.2b): 2.73 < 3 |
| Current Ratio: 1.04 > 1.5 & < 3 |
| Outstanding Shares: last quarter (996.0m) vs 12m ago 0.20% < -2% |
| Gross Margin: 33.13% > 18% (prev 33.34%; Δ -0.22% > 0.5%) |
| Asset Turnover: 160.9% > 50% (prev 164.3%; Δ -3.43% > 0%) |
| Interest Coverage Ratio: 8.66 > 6 (EBIT TTM 20.8b / Interest Expense TTM 2.41b) |
| A: 0.01 (Total Current Assets 37.2b - Total Current Liabilities 35.6b) / Total Assets 108b |
| B: 0.89 (Retained Earnings 95.5b / Total Assets 108b) |
| C: 0.20 (EBIT TTM 20.8b / Avg Total Assets 104b) |
| D: 0.15 (Book Value of Equity 13.9b / Total Liabilities 94.0b) |
| Altman-Z'' = 4.49 = AA |
| DSRI: 1.10 (Receivables 6.62b/5.89b, Revenue 167b/163b) |
| GMI: 1.01 (GM 33.34% / 33.13%) |
| AQI: 1.06 (AQ_t 0.31 / AQ_t-1 0.29) |
| SGI: 1.02 (Revenue 167b / 163b) |
| TATA: -0.04 (NI 14.0b - CFO 18.0b) / TA 108b) |
| Beneish M = -2.89 (Cap -4..+1) = A |
As of July 23, 2026, the stock is trading at USD 331.45 with a total of 2,903,180 shares traded. Over the past week, the price has changed by -2.93%, over one month by +1.48%, over three months by -1.64% and over the past year by -8.29%.
Current recommended Stop Loss: 313.80 (which is 5.3% or 2 ATR below the current price).
The Home Depot has received a consensus analysts rating of 4.18. Therefore, it is recommended to buy HD.
- StrongBuy: 21
- Buy: 5
- Hold: 12
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 370.3 | 11.7% |
P/E Trailing = 24.6998
P/E Forward = 23.3645
P/S = 2.083
P/B = 25.012
P/EG = 1.9621
Revenue TTM = 167b USD
EBIT TTM = 20.8b USD
EBITDA TTM = 24.2b USD
Long Term Debt = 44.8b USD (from longTermDebt, last quarter)
Short Term Debt = 4.99b USD (from shortTermDebt, last quarter)
Debt = 67.6b USD (from shortLongTermDebtTotal, last quarter) + Leases 9.65b
Net Debt = 66.0b USD (calculated: Debt 67.6b - CCE 1.60b)
Enterprise Value = 413b USD (347b + Debt 67.6b - CCE 1.60b)
Interest Coverage Ratio = 8.66 (Ebit TTM 20.8b / Interest Expense TTM 2.41b)
EV/FCF = 28.85x (Enterprise Value 413b / FCF TTM 14.3b)
FCF Yield = 3.47% (FCF TTM 14.3b / Enterprise Value 413b)
FCF Margin = 8.59% (FCF TTM 14.3b / Revenue TTM 167b)
Net Margin = 8.41% (Net Income TTM 14.0b / Revenue TTM 167b)
Gross Margin = 33.13% ((Revenue TTM 167b - Cost of Revenue TTM 111b) / Revenue TTM)
Gross Margin QoQ = 33.00% (prev 32.64%)
Tobins Q-Ratio = 3.83 (Enterprise Value 413b / Total Assets 108b)
Interest Expense / Debt = 3.56% (Interest Expense 2.41b / Debt 67.6b)
Taxrate = 24.00% (4.42b / 18.4b)
NOPAT = 15.8b (EBIT 20.8b * (1 - 24.00%))
Current Ratio = 1.04 (Total Current Assets 37.2b / Total Current Liabilities 35.6b)
Debt / Equity = 4.87 (Debt 67.6b / totalStockholderEquity, last quarter 13.9b)
Debt / EBITDA = 2.73 (Net Debt 66.0b / EBITDA 24.2b)
Debt / FCF = 4.61 (Net Debt 66.0b / FCF TTM 14.3b)
Total Stockholder Equity = 12.4b (last 4 quarters mean from totalStockholderEquity)
RoA = 13.53% (Net Income 14.0b / Total Assets 108b)
RoE = 113.3% (Net Income TTM 14.0b / Total Stockholder Equity 12.4b)
RoCE = 36.45% (EBIT 20.8b / Capital Employed (Equity 12.4b + L.T.Debt 44.8b))
RoIC = 20.92% (NOPAT 15.8b / Invested Capital 75.7b)
WACC = 7.80% (E(347b)/V(415b) * Re(8.79%) + D(67.6b)/V(415b) * Rd(3.56%) * (1-Tc(0.24)))
Discount Rate = 8.79% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 77.46 | Cagr: 0.09%
[DCF] Terminal Value 74.62% ; FCFF base≈14.7b ; Y1≈14.0b ; Y5≈13.4b
[DCF] Fair Price = 145.8 (EV 211b - Net Debt 66.0b = Equity 145b / Shares 997.1m; r=8.35% [WACC [floored]]; 5y FCF grow -5.79% → 2.50% )
EPS Correlation: -76.12 | EPS CAGR: -2.20% | SUE: 0.24 | # QB: 0
Revenue Correlation: 89.22 | Revenue CAGR: 3.81% | SUE: 0.68 | # QB: 0
EPS current Quarter (2026-07-31): EPS=4.73 | Chg30d=-0.04% | Revisions=-29% | Analysts=30
EPS next Quarter (2026-10-31): EPS=3.96 | Chg30d=-0.02% | Revisions=-22% | Analysts=30
EPS current Year (2027-01-31): EPS=14.96 | Chg30d=-0.07% | Revisions=-62% | GrowthEPS=+1.8% | GrowthRev=+3.8%
EPS next Year (2028-01-31): EPS=16.09 | Chg30d=-0.09% | Revisions=-12% | GrowthEPS=+7.6% | GrowthRev=+3.8%
[Analyst] Revisions Ratio: -43% (up=5, down=15)