HOME DEPOT INC (HDI.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HDI - US4370761029 - Common Stock
324.8 EUR
+0.05 (+0.02%)
Overall HDI gets a fundamental rating of 5 out of 10. We evaluated HDI against 56 industry peers in the Specialty Retail industry. HDI scores excellent on profitability, but there are concerns on its financial health. HDI is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year HDI was profitable.
- HDI had a positive operating cash flow in the past year.
- In the past 5 years HDI has always been profitable.
- Each year in the past 5 years HDI had a positive operating cash flow.
1.2 Ratios
- HDI's Return On Assets of 13.72% is amongst the best of the industry. HDI outperforms 92.86% of its industry peers.
- The Return On Equity of HDI (120.35%) is better than 98.21% of its industry peers.
- HDI has a Return On Invested Capital of 21.84%. This is amongst the best in the industry. HDI outperforms 92.86% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for HDI is significantly above the industry average of 10.20%.
- 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
- The Profit Margin of HDI (8.77%) is better than 91.07% of its industry peers.
- In the last couple of years the Profit Margin of HDI has declined.
- With an excellent Operating Margin value of 12.96%, HDI belongs to the best of the industry, outperforming 94.64% of the companies in the same industry.
- HDI's Operating Margin has been stable in the last couple of years.
- HDI has a Gross Margin (33.36%) which is in line with its industry peers.
- HDI's Gross Margin has been stable in the last couple of years.
| 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.
- HDI has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, HDI has less shares outstanding
- The debt/assets ratio for HDI has been reduced compared to a year ago.
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's Debt to FCF ratio of 4.02 is fine compared to the rest of the industry. HDI outperforms 67.86% of its industry peers.
- 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: 83.93% 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/WACC2.32
WACC9.43%
2.3 Liquidity
- A Current Ratio of 1.05 indicates that HDI should not have too much problems paying its short term obligations.
- The Current ratio of HDI (1.05) is worse than 62.50% 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 80.36% 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.
- HDI shows a small growth in Revenue. In the last year, the Revenue has grown by 7.50%.
- HDI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.67% yearly.
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
- HDI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.01% yearly.
- HDI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.78% yearly.
EPS Next Y0.14%
EPS Next 2Y2.03%
EPS Next 3Y4.29%
EPS Next 5Y6.01%
Revenue Next Year3.7%
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
- The Price/Earnings ratio is 25.64, which means the current valuation is very expensive for HDI.
- 66.07% of the companies in the same industry are more expensive than HDI, based on the Price/Earnings ratio.
- HDI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 24.75 indicates a rather expensive valuation of HDI.
- HDI's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, HDI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.64 | ||
| Fwd PE | 24.75 |
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.
- 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 | 27.48 | ||
| EV/EBITDA | 16.96 |
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)178.5
PEG (5Y)3.29
EPS Next 2Y2.03%
EPS Next 3Y4.29%
5. Dividend
5.1 Amount
- HDI has a Yearly Dividend Yield of 2.41%. 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 1.47.
- HDI's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
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.
- The dividend of HDI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP62.39%
EPS Next 2Y2.03%
EPS Next 3Y4.29%
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%.