HOME DEPOT INC (HDI.DE) Stock Fundamental Analysis
FRA:HDI - Deutsche Boerse Ag - US4370761029 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to HDI. HDI was compared to 54 industry peers in the Specialty Retail industry. HDI has an excellent profitability rating, but there are some minor 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.
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 better Return On Assets (15.40%) than 94.34% of its industry peers.
HDI's Return On Equity of 222.98% is amongst the best of the industry. HDI outperforms 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 24.19%, HDI belongs to the best of the industry, outperforming 94.34% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HDI is significantly above the industry average of 9.99%.
The last Return On Invested Capital (24.19%) 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 | 15.4% | ||
| ROE | 222.98% | ||
| ROIC | 24.19% |
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's Profit Margin of 9.28% is amongst the best of the industry. HDI outperforms 92.45% of its industry peers.
In the last couple of years the Profit Margin of HDI has declined.
HDI has a Operating Margin of 13.49%. This is amongst the best in the industry. HDI outperforms 92.45% 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 (33.42%) which is comparable to the rest of the industry.
HDI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.49% | ||
| PM (TTM) | 9.28% | ||
| GM | 33.42% |
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.
Compared to 1 year ago, HDI has about the same amount of shares outstanding.
HDI has less shares outstanding than it did 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 3.27, which is a good value as it means it would take HDI, 3.27 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.27, HDI is in the better half of the industry, outperforming 77.36% of the companies in the same industry.
HDI has a Debt/Equity ratio of 7.35. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of HDI (7.35) is worse than 88.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.35 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | N/A |
ROIC/WACC2.58
WACC9.36%
2.3 Liquidity
A Current Ratio of 1.11 indicates that HDI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.11, HDI is not doing good in the industry: 60.38% of the companies in the same industry are doing better.
HDI has a Quick Ratio of 1.11. 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 83.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
HDI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.19%.
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 4.48% in the last year.
The Revenue has been growing slightly by 7.67% on average over the past years.
EPS 1Y (TTM)-1.19%
EPS 3Y-1.31%
EPS 5Y7.8%
EPS Q2Q%7.09%
Revenue 1Y (TTM)4.48%
Revenue growth 3Y1.81%
Revenue growth 5Y7.67%
Sales Q2Q%14.14%
3.2 Future
HDI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.26% yearly.
Based on estimates for the next years, HDI will show a small growth in Revenue. The Revenue will grow by 3.34% on average per year.
EPS Next Y7.44%
EPS Next 2Y8.35%
EPS Next 3Y10.03%
EPS Next 5Y8.26%
Revenue Next Year3.43%
Revenue Next 2Y3.86%
Revenue Next 3Y3.89%
Revenue Next 5Y3.34%
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 stable.
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
With a Price/Earnings ratio of 24.92, HDI is valued on the expensive side.
71.70% of the companies in the same industry are more expensive than HDI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.35, HDI is valued at the same level.
With a Price/Forward Earnings ratio of 23.19, HDI is valued on the expensive side.
Based on the Price/Forward Earnings ratio, HDI is valued a bit cheaper than 66.04% of the companies in the same industry.
HDI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.92 | ||
| Fwd PE | 23.19 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.62 | ||
| EV/EBITDA | 16.64 |
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)3.35
PEG (5Y)3.2
EPS Next 2Y8.35%
EPS Next 3Y10.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.41%, HDI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.08, HDI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, HDI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
On average, the dividend of HDI grows each year by 10.50%, which is quite nice.
Dividend Growth(5Y)10.5%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
HDI pays out 60.31% 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.
DP60.31%
EPS Next 2Y8.35%
EPS Next 3Y10.03%
FRA:HDI (3/7/2025, 7:00:00 PM)
342.45
-14.85 (-4.16%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners72.73%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap340.18B
Analysts78.78
Price Target420.46 (22.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Yearly Dividend8.28
Dividend Growth(5Y)10.5%
DP60.31%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.33%
Min EPS beat(2)-2.55%
Max EPS beat(2)-2.12%
EPS beat(4)0
Avg EPS beat(4)-1.84%
Min EPS beat(4)-2.55%
Max EPS beat(4)-0.62%
EPS beat(8)1
Avg EPS beat(8)-1.35%
EPS beat(12)2
Avg EPS beat(12)-0.49%
EPS beat(16)4
Avg EPS beat(16)1.55%
Revenue beat(2)0
Avg Revenue beat(2)-1.13%
Min Revenue beat(2)-1.55%
Max Revenue beat(2)-0.7%
Revenue beat(4)0
Avg Revenue beat(4)-2.12%
Min Revenue beat(4)-3.55%
Max Revenue beat(4)-0.7%
Revenue beat(8)0
Avg Revenue beat(8)-2.56%
Revenue beat(12)1
Avg Revenue beat(12)-1.95%
Revenue beat(16)3
Avg Revenue beat(16)-1.24%
PT rev (1m)0.73%
PT rev (3m)0.29%
EPS NQ rev (1m)-2.29%
EPS NQ rev (3m)-2.42%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-0.1%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.92 | ||
| Fwd PE | 23.19 | ||
| P/S | 2.32 | ||
| P/FCF | 22.62 | ||
| P/OCF | 18.64 | ||
| P/B | 55.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.64 |
EPS(TTM)13.74
EY4.01%
EPS(NY)14.76
Fwd EY4.31%
FCF(TTM)15.14
FCFY4.42%
OCF(TTM)18.37
OCFY5.36%
SpS147.9
BVpS6.16
TBVpS-20.23
PEG (NY)3.35
PEG (5Y)3.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.4% | ||
| ROE | 222.98% | ||
| ROCE | 31.91% | ||
| ROIC | 24.19% | ||
| ROICexc | 24.79% | ||
| ROICexgc | 43.53% | ||
| OM | 13.49% | ||
| PM (TTM) | 9.28% | ||
| GM | 33.42% | ||
| FCFM | 10.23% |
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%
ROICexcg growth 3Y-8.8%
ROICexcg 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-Score6
Asset Turnover1.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.35 | ||
| Debt/FCF | 3.27 | ||
| Debt/EBITDA | 1.93 | ||
| Cap/Depr | 92.66% | ||
| Cap/Sales | 2.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.34% | ||
| Profit Quality | 110.26% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | N/A |
F-Score6
WACC9.36%
ROIC/WACC2.58
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)-1.19%
EPS 3Y-1.31%
EPS 5Y7.8%
EPS Q2Q%7.09%
EPS Next Y7.44%
EPS Next 2Y8.35%
EPS Next 3Y10.03%
EPS Next 5Y8.26%
Revenue 1Y (TTM)4.48%
Revenue growth 3Y1.81%
Revenue growth 5Y7.67%
Sales Q2Q%14.14%
Revenue Next Year3.43%
Revenue Next 2Y3.86%
Revenue Next 3Y3.89%
Revenue Next 5Y3.34%
EBIT growth 1Y-0.75%
EBIT growth 3Y-2.61%
EBIT growth 5Y6.32%
EBIT Next Year18.91%
EBIT Next 3Y10.2%
EBIT Next 5Y7.1%
FCF growth 1Y-9.03%
FCF growth 3Y5.24%
FCF growth 5Y8.2%
OCF growth 1Y-6.43%
OCF growth 3Y6.13%
OCF growth 5Y7.68%