HOME DEPOT INC (HDI.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HDI - US4370761029 - Common Stock
296.65 EUR
-10.7 (-3.48%)
HDI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 55 industry peers in the Specialty Retail industry. While HDI belongs to the best of the industry regarding profitability, there are concerns on its financial health. HDI does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year HDI was profitable.
In the past year HDI had a positive cash flow from operations.
In the past 5 years HDI has always been profitable.
HDI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HDI has a Return On Assets of 13.72%. This is amongst the best in the industry. HDI outperforms 92.59% of its industry peers.
With an excellent Return On Equity value of 120.35%, HDI belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
HDI has a Return On Invested Capital of 21.84%. This is amongst the best in the industry. HDI outperforms 92.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HDI is significantly above the industry average of 10.37%.
The last Return On Invested Capital (21.84%) for HDI is well below the 3 year average (29.60%), which needs to be investigated, but indicates that HDI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.72% | ||
| ROE | 120.35% | ||
| ROIC | 21.84% |
ROA(3y)19.19%
ROA(5y)19.73%
ROE(3y)922.84%
ROE(5y)N/A
ROIC(3y)29.6%
ROIC(5y)32.3%
1.3 Margins
HDI has a better Profit Margin (8.77%) than 90.74% of its industry peers.
In the last couple of years the Profit Margin of HDI has declined.
The Operating Margin of HDI (12.96%) is better than 94.44% of its industry peers.
HDI's Operating Margin has been stable in the last couple of years.
HDI's Gross Margin of 33.36% is in line compared to the rest of the industry. HDI outperforms 40.74% of its industry peers.
In the last couple of years the Gross Margin of HDI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.96% | ||
| PM (TTM) | 8.77% | ||
| GM | 33.36% |
OM growth 3Y-4.34%
OM growth 5Y-1.25%
PM growth 3Y-5.13%
PM growth 5Y-1.87%
GM growth 3Y-0.21%
GM growth 5Y-0.39%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HDI is creating value.
The number of shares outstanding for HDI has been increased compared to 1 year ago.
HDI has less shares outstanding than it did 5 years ago.
HDI has a better debt/assets ratio than last year.
2.2 Solvency
HDI has a debt to FCF ratio of 4.02. This is a neutral value as HDI would need 4.02 years to pay back of all of its debts.
HDI's Debt to FCF ratio of 4.02 is fine compared to the rest of the industry. HDI outperforms 62.96% of its industry peers.
A Debt/Equity ratio of 4.09 is on the high side and indicates that HDI has dependencies on debt financing.
With a Debt to Equity ratio value of 4.09, HDI is not doing good in the industry: 87.04% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.09 | ||
| Debt/FCF | 4.02 | ||
| Altman-Z | N/A |
ROIC/WACC2.35
WACC9.31%
2.3 Liquidity
HDI has a Current Ratio of 1.05. This is a normal value and indicates that HDI is financially healthy and should not expect problems in meeting its short term obligations.
HDI's Current ratio of 1.05 is on the low side compared to the rest of the industry. HDI is outperformed by 68.52% of its industry peers.
HDI has a Quick Ratio of 1.05. This is a bad value and indicates that HDI is not financially healthy enough and could expect problems in meeting its short term obligations.
HDI has a worse Quick ratio (0.29) than 85.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.90% over the past year.
The Earnings Per Share has been growing slightly by 7.80% on average over the past years.
The Revenue has been growing slightly by 7.50% in the past year.
Measured over the past years, HDI shows a small growth in Revenue. The Revenue has been growing by 7.67% on average per year.
EPS 1Y (TTM)1.9%
EPS 3Y-1.31%
EPS 5Y7.8%
EPS Q2Q%1.91%
Revenue 1Y (TTM)7.5%
Revenue growth 3Y1.81%
Revenue growth 5Y7.67%
Sales Q2Q%2.82%
3.2 Future
Based on estimates for the next years, HDI will show a small growth in Earnings Per Share. The EPS will grow by 6.80% on average per year.
Based on estimates for the next years, HDI will show a small growth in Revenue. The Revenue will grow by 3.96% on average per year.
EPS Next Y0.18%
EPS Next 2Y2.92%
EPS Next 3Y4.92%
EPS Next 5Y6.8%
Revenue Next Year3.6%
Revenue Next 2Y4.05%
Revenue Next 3Y4.15%
Revenue Next 5Y3.96%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.18 indicates a rather expensive valuation of HDI.
62.96% of the companies in the same industry are more expensive than HDI, based on the Price/Earnings ratio.
HDI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.38.
A Price/Forward Earnings ratio of 22.00 indicates a rather expensive valuation of HDI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HDI is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.83, HDI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.18 | ||
| Fwd PE | 22 |
4.2 Price Multiples
68.52% of the companies in the same industry are cheaper than HDI, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HDI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.85 | ||
| EV/EBITDA | 16.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HDI does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of HDI may justify a higher PE ratio.
PEG (NY)129.55
PEG (5Y)2.97
EPS Next 2Y2.92%
EPS Next 3Y4.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.59%, HDI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.48, HDI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, HDI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
5.2 History
On average, the dividend of HDI grows each year by 10.49%, which is quite nice.
Dividend Growth(5Y)10.49%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
HDI pays out 62.39% of its income as dividend. This is not a sustainable payout ratio.
HDI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP62.39%
EPS Next 2Y2.92%
EPS Next 3Y4.92%
FRA:HDI (12/19/2025, 7:00:00 PM)
296.65
-10.7 (-3.48%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners73.76%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap295.32B
Revenue(TTM)166.19B
Net Income(TTM)14.58B
Analysts76.6
Price Target352.36 (18.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
Yearly Dividend7.68
Dividend Growth(5Y)10.49%
DP62.39%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.48%
Min EPS beat(2)-5.4%
Max EPS beat(2)-3.55%
EPS beat(4)0
Avg EPS beat(4)-3.84%
Min EPS beat(4)-5.4%
Max EPS beat(4)-2.55%
EPS beat(8)0
Avg EPS beat(8)-2.65%
EPS beat(12)1
Avg EPS beat(12)-2.15%
EPS beat(16)2
Avg EPS beat(16)-1.29%
Revenue beat(2)0
Avg Revenue beat(2)-2.7%
Min Revenue beat(2)-3.08%
Max Revenue beat(2)-2.32%
Revenue beat(4)0
Avg Revenue beat(4)-2.13%
Min Revenue beat(4)-3.08%
Max Revenue beat(4)-1.55%
Revenue beat(8)0
Avg Revenue beat(8)-2.24%
Revenue beat(12)0
Avg Revenue beat(12)-2.56%
Revenue beat(16)1
Avg Revenue beat(16)-1.93%
PT rev (1m)-7.58%
PT rev (3m)-5.44%
EPS NQ rev (1m)-13.1%
EPS NQ rev (3m)-13.1%
EPS NY rev (1m)-3.3%
EPS NY rev (3m)-3.29%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.18 | ||
| Fwd PE | 22 | ||
| P/S | 2.08 | ||
| P/FCF | 24.85 | ||
| P/OCF | 19.61 | ||
| P/B | 28.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.01 |
EPS(TTM)12.8
EY4.31%
EPS(NY)13.48
Fwd EY4.55%
FCF(TTM)11.94
FCFY4.02%
OCF(TTM)15.13
OCFY5.1%
SpS142.45
BVpS10.39
TBVpS-17.63
PEG (NY)129.55
PEG (5Y)2.97
Graham Number54.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.72% | ||
| ROE | 120.35% | ||
| ROCE | 29.95% | ||
| ROIC | 21.84% | ||
| ROICexc | 22.34% | ||
| ROICexgc | 40.25% | ||
| OM | 12.96% | ||
| PM (TTM) | 8.77% | ||
| GM | 33.36% | ||
| FCFM | 8.38% |
ROA(3y)19.19%
ROA(5y)19.73%
ROE(3y)922.84%
ROE(5y)N/A
ROIC(3y)29.6%
ROIC(5y)32.3%
ROICexc(3y)31.18%
ROICexc(5y)34.99%
ROICexgc(3y)44.07%
ROICexgc(5y)47.45%
ROCE(3y)38.92%
ROCE(5y)42.7%
ROICexgc growth 3Y-8.8%
ROICexgc growth 5Y1.22%
ROICexc growth 3Y-16.36%
ROICexc growth 5Y-8.21%
OM growth 3Y-4.34%
OM growth 5Y-1.25%
PM growth 3Y-5.13%
PM growth 5Y-1.87%
GM growth 3Y-0.21%
GM growth 5Y-0.39%
F-Score4
Asset Turnover1.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.09 | ||
| Debt/FCF | 4.02 | ||
| Debt/EBITDA | 1.94 | ||
| Cap/Depr | 91.88% | ||
| Cap/Sales | 2.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.98% | ||
| Profit Quality | 95.51% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | N/A |
F-Score4
WACC9.31%
ROIC/WACC2.35
Cap/Depr(3y)98.95%
Cap/Depr(5y)96.86%
Cap/Sales(3y)2.09%
Cap/Sales(5y)1.97%
Profit Quality(3y)98.66%
Profit Quality(5y)101.7%
High Growth Momentum
Growth
EPS 1Y (TTM)1.9%
EPS 3Y-1.31%
EPS 5Y7.8%
EPS Q2Q%1.91%
EPS Next Y0.18%
EPS Next 2Y2.92%
EPS Next 3Y4.92%
EPS Next 5Y6.8%
Revenue 1Y (TTM)7.5%
Revenue growth 3Y1.81%
Revenue growth 5Y7.67%
Sales Q2Q%2.82%
Revenue Next Year3.6%
Revenue Next 2Y4.05%
Revenue Next 3Y4.15%
Revenue Next 5Y3.96%
EBIT growth 1Y1.71%
EBIT growth 3Y-2.61%
EBIT growth 5Y6.32%
EBIT Next Year13.5%
EBIT Next 3Y7.79%
EBIT Next 5Y5.74%
FCF growth 1Y-21.59%
FCF growth 3Y5.24%
FCF growth 5Y8.2%
OCF growth 1Y-16.09%
OCF growth 3Y6.13%
OCF growth 5Y7.68%
HOME DEPOT INC / HDI.DE FAQ
Can you provide the ChartMill fundamental rating for HOME DEPOT INC?
ChartMill assigns a fundamental rating of 5 / 10 to HDI.DE.
What is the valuation status of HOME DEPOT INC (HDI.DE) stock?
ChartMill assigns a valuation rating of 3 / 10 to HOME DEPOT INC (HDI.DE). This can be considered as Overvalued.
What is the profitability of HDI stock?
HOME DEPOT INC (HDI.DE) has a profitability rating of 8 / 10.
How financially healthy is HOME DEPOT INC?
The financial health rating of HOME DEPOT INC (HDI.DE) is 3 / 10.
Can you provide the expected EPS growth for HDI stock?
The Earnings per Share (EPS) of HOME DEPOT INC (HDI.DE) is expected to grow by 0.18% in the next year.