HOME DEPOT INC (HDI.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HDI - US4370761029 - Common Stock
325.45 EUR
-3.85 (-1.17%)
HDI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 61 industry peers in the Specialty Retail industry. While HDI has a great profitability rating, there are quite some concerns on its financial health. HDI has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- HDI had positive earnings in the past year.
- In the past year HDI had a positive cash flow from operations.
- Each year in the past 5 years HDI has been profitable.
- HDI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of HDI (13.72%) is better than 91.80% of its industry peers.
- The Return On Equity of HDI (120.35%) is better than 98.36% of its industry peers.
- HDI has a Return On Invested Capital of 21.84%. This is amongst the best in the industry. HDI outperforms 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
- HDI has a better Profit Margin (8.77%) than 88.52% of its industry peers.
- HDI's Profit Margin has declined in the last couple of years.
- HDI's Operating Margin of 12.96% is amongst the best of the industry. HDI outperforms 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.
- The Gross Margin of HDI (33.36%) is comparable to the rest of the industry.
- 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.
- 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
- 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.
- HDI has a better Debt to FCF ratio (4.02) than 63.93% 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: 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/WACC2.31
WACC9.47%
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 has a Current ratio of 1.05. This is in the lower half of the industry: HDI underperforms 65.57% of its industry peers.
- A Quick Ratio of 0.29 indicates that HDI may have some problems paying 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
- The Earnings Per Share has been growing slightly by 1.90% over the past year.
- Measured over the past 5 years, HDI shows a small growth in Earnings Per Share. The EPS has been growing by 7.80% on average per year.
- HDI shows a small growth in Revenue. In the last year, the Revenue has grown by 7.50%.
- 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 6.01% 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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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
- A Price/Earnings ratio of 25.21 indicates a quite expensive valuation of HDI.
- 67.21% of the companies in the same industry are more expensive than HDI, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of HDI to the average of the S&P500 Index (27.38), we can say HDI is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 24.37, the valuation of HDI can be described as rather expensive.
- HDI's Price/Forward Earnings is on the same level as the industry average.
- HDI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.21 | ||
| Fwd PE | 24.37 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HDI is on the same level as its industry peers.
- The rest of the industry has a similar Price/Free Cash Flow ratio as HDI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.03 | ||
| EV/EBITDA | 16.88 |
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.
- HDI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)176.72
PEG (5Y)3.23
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.
- HDI's Dividend Yield is a higher than the industry average which is at 1.26.
- Compared to an average S&P500 Dividend Yield of 1.85, HDI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
5.2 History
- The dividend of HDI is nicely growing with an annual growth rate of 10.49%!
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.
- HDI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP62.39%
EPS Next 2Y1.98%
EPS Next 3Y4.25%
FRA:HDI (1/19/2026, 5:19:39 PM)
325.45
-3.85 (-1.17%)
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 Cap323.99B
Revenue(TTM)166.19B
Net Income(TTM)14.58B
Analysts76.52
Price Target344.88 (5.97%)
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 | 25.21 | ||
| Fwd PE | 24.37 | ||
| P/S | 2.26 | ||
| P/FCF | 27.03 | ||
| P/OCF | 21.33 | ||
| P/B | 31.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.88 |
EPS(TTM)12.91
EY3.97%
EPS(NY)13.36
Fwd EY4.1%
FCF(TTM)12.04
FCFY3.7%
OCF(TTM)15.26
OCFY4.69%
SpS143.7
BVpS10.48
TBVpS-17.78
PEG (NY)176.72
PEG (5Y)3.23
Graham Number55.17
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
WACC9.47%
ROIC/WACC2.31
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%.