HOME DEPOT INC (HDI.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HDI - US4370761029 - Common Stock
326.1 EUR
+1.1 (+0.34%)
We assign a fundamental rating of 5 out of 10 to HDI. HDI was compared to 59 industry peers in the Specialty Retail industry. HDI has an excellent profitability rating, 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
- 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
- HDI has a better Return On Assets (13.72%) than 89.83% of its industry peers.
- HDI's Return On Equity of 120.35% is amongst the best of the industry. HDI outperforms 98.31% of its industry peers.
- With an excellent Return On Invested Capital value of 21.84%, HDI belongs to the best of the industry, outperforming 88.14% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for HDI is significantly above the industry average of 11.42%.
- 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 88.14% of its industry peers.
- HDI's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 12.96%, HDI belongs to the best of the industry, outperforming 91.53% of the companies in the same industry.
- HDI's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 33.36%, HDI is in line with its industry, outperforming 44.07% of the companies in the same industry.
- 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.
- The number of shares outstanding for HDI has been increased compared to 1 year ago.
- Compared to 5 years ago, HDI has less shares outstanding
- 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 has a Debt to FCF ratio of 4.02. This is in the better half of the industry: HDI outperforms 64.41% 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.
- HDI has a worse Debt to Equity ratio (4.09) than 84.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.09 | ||
| Debt/FCF | 4.02 | ||
| Altman-Z | N/A |
ROIC/WACC2.32
WACC9.41%
2.3 Liquidity
- A Current Ratio of 1.05 indicates that HDI should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.05, HDI is doing worse than 64.41% of the companies in the same industry.
- A Quick Ratio of 0.29 indicates that HDI may have some problems paying its short term obligations.
- The Quick ratio of HDI (0.29) is worse than 84.75% 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%.
- 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%.
- 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
- 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.
- The Revenue is expected to grow by 3.78% on average over the next years.
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%
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 25.34, which means the current valuation is very expensive for HDI.
- Compared to the rest of the industry, the Price/Earnings ratio of HDI indicates a somewhat cheap valuation: HDI is cheaper than 62.71% of the companies listed in the same industry.
- HDI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.54.
- HDI is valuated rather expensively with a Price/Forward Earnings ratio of 24.49.
- HDI's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of HDI to the average of the S&P500 Index (24.31), we can say HDI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.34 | ||
| Fwd PE | 24.49 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HDI is valued a bit more expensive than 64.41% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as HDI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.16 | ||
| EV/EBITDA | 16.73 |
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)177.63
PEG (5Y)3.25
EPS Next 2Y1.98%
EPS Next 3Y4.25%
5. Dividend
5.1 Amount
- HDI has a Yearly Dividend Yield of 2.56%. 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 1.34.
- Compared to an average S&P500 Dividend Yield of 1.92, HDI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
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 2Y1.98%
EPS Next 3Y4.25%
FRA:HDI (1/15/2026, 7:00:00 PM)
326.1
+1.1 (+0.34%)
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 Cap324.64B
Revenue(TTM)166.19B
Net Income(TTM)14.58B
Analysts76.52
Price Target349.26 (7.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
Yearly Dividend7.72
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)-0.88%
PT rev (3m)-7.24%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-13.21%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-3.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.34 | ||
| Fwd PE | 24.49 | ||
| P/S | 2.28 | ||
| P/FCF | 27.16 | ||
| P/OCF | 21.43 | ||
| P/B | 31.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.73 |
EPS(TTM)12.87
EY3.95%
EPS(NY)13.32
Fwd EY4.08%
FCF(TTM)12.01
FCFY3.68%
OCF(TTM)15.22
OCFY4.67%
SpS143.28
BVpS10.45
TBVpS-17.73
PEG (NY)177.63
PEG (5Y)3.25
Graham Number55
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
WACC9.41%
ROIC/WACC2.32
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%
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%.