HOME DEPOT INC (HDI.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HDI - US4370761029 - Common Stock
327.05 EUR
+1.4 (+0.43%)
Overall HDI gets a fundamental rating of 5 out of 10. We evaluated HDI against 61 industry peers in the Specialty Retail industry. HDI has an excellent profitability rating, but 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
- HDI had positive earnings in the past year.
- HDI had a positive operating cash flow in the past year.
- Each year in the past 5 years HDI has been profitable.
- In the past 5 years HDI always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of HDI (13.72%) is better than 91.80% of its industry peers.
- HDI has a better Return On Equity (120.35%) than 98.36% of its industry peers.
- HDI has a better Return On Invested Capital (21.84%) than 91.80% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for HDI is significantly above the industry average of 10.05%.
- The 3 year average ROIC (29.60%) for HDI is well above the current ROIC(21.84%). The reason for the recent decline needs to be investigated.
| 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
- Looking at the Profit Margin, with a value of 8.77%, HDI belongs to the top of the industry, outperforming 88.52% of the companies in the same industry.
- In the last couple of years the Profit Margin of HDI has declined.
- The Operating Margin of HDI (12.96%) is better than 93.44% of its industry peers.
- In the last couple of years the Operating Margin of HDI has remained more or less at the same level.
- HDI has a Gross Margin of 33.36%. This is comparable to the rest of the industry: HDI outperforms 49.18% 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
- HDI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- HDI has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for HDI has been reduced compared to 5 years ago.
- Compared to 1 year ago, HDI has an improved debt to assets ratio.
2.2 Solvency
- The Debt to FCF ratio of HDI is 4.02, which is a neutral value as it means it would take HDI, 4.02 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 4.02, HDI is doing good in the industry, outperforming 63.93% of the companies in the same industry.
- HDI has a Debt/Equity ratio of 4.09. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 4.09, HDI is not doing good in the industry: 86.89% 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/WACC2.3
WACC9.49%
2.3 Liquidity
- A Current Ratio of 1.05 indicates that HDI should not have too much problems paying 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 65.57% 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's Quick ratio of 0.29 is on the low side compared to the rest of the industry. HDI is outperformed by 83.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
- HDI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.90%.
- The Earnings Per Share has been growing slightly by 7.80% on average over the past years.
- Looking at the last year, HDI shows a small growth in Revenue. The Revenue has grown by 7.50% in the last year.
- The Revenue has been growing slightly by 7.67% on average over the past years.
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 6.01% on average per year.
- Based on estimates for the next years, HDI will show a small growth in Revenue. The Revenue will grow by 3.78% on average per year.
EPS Next Y0.14%
EPS Next 2Y1.98%
EPS Next 3Y4.25%
EPS Next 5Y6.01%
Revenue Next Year3.59%
Revenue Next 2Y3.84%
Revenue Next 3Y4.02%
Revenue Next 5Y3.78%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 25.59, which means the current valuation is very expensive for HDI.
- 67.21% 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 27.32.
- Based on the Price/Forward Earnings ratio of 24.74, the valuation of HDI can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HDI is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of HDI to the average of the S&P500 Index (24.32), we can say HDI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.59 | ||
| Fwd PE | 24.74 |
4.2 Price Multiples
- HDI's Enterprise Value to EBITDA is on the same level as the industry average.
- HDI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.44 | ||
| EV/EBITDA | 16.87 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- HDI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)179.4
PEG (5Y)3.28
EPS Next 2Y1.98%
EPS Next 3Y4.25%
5. Dividend
5.1 Amount
- HDI has a Yearly Dividend Yield of 2.43%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.26, HDI pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, HDI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
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
- 62.39% of the earnings are spent on dividend by HDI. This is not a sustainable payout ratio.
- The dividend of HDI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP62.39%
EPS Next 2Y1.98%
EPS Next 3Y4.25%
FRA:HDI (1/22/2026, 7:00:00 PM)
327.05
+1.4 (+0.43%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)11-18 2025-11-18/bmo
Earnings (Next)05-18 2026-05-18
Inst Owners74.02%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap325.58B
Revenue(TTM)166.19B
Net Income(TTM)14.58B
Analysts76.52
Price Target344.88 (5.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
Yearly Dividend7.74
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)-2.12%
PT rev (3m)-8.41%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-13.19%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-3.44%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.59 | ||
| Fwd PE | 24.74 | ||
| P/S | 2.3 | ||
| P/FCF | 27.44 | ||
| P/OCF | 21.66 | ||
| P/B | 31.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.87 |
EPS(TTM)12.78
EY3.91%
EPS(NY)13.22
Fwd EY4.04%
FCF(TTM)11.92
FCFY3.64%
OCF(TTM)15.1
OCFY4.62%
SpS142.21
BVpS10.37
TBVpS-17.6
PEG (NY)179.4
PEG (5Y)3.28
Graham Number54.6
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
WACC9.49%
ROIC/WACC2.3
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 Y0.14%
EPS Next 2Y1.98%
EPS Next 3Y4.25%
EPS Next 5Y6.01%
Revenue 1Y (TTM)7.5%
Revenue growth 3Y1.81%
Revenue growth 5Y7.67%
Sales Q2Q%2.82%
Revenue Next Year3.59%
Revenue Next 2Y3.84%
Revenue Next 3Y4.02%
Revenue Next 5Y3.78%
EBIT growth 1Y1.71%
EBIT growth 3Y-2.61%
EBIT growth 5Y6.32%
EBIT Next Year13.92%
EBIT Next 3Y7.58%
EBIT Next 5Y6.03%
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.
Can you provide the valuation status for HOME DEPOT INC?
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.
What is the expected EPS growth for HOME DEPOT INC (HDI.DE) stock?
The Earnings per Share (EPS) of HOME DEPOT INC (HDI.DE) is expected to grow by 0.14% in the next year.
How sustainable is the dividend of HOME DEPOT INC (HDI.DE) stock?
The dividend rating of HOME DEPOT INC (HDI.DE) is 4 / 10 and the dividend payout ratio is 62.39%.