HOME DEPOT INC (HDI.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:HDI • US4370761029
310.95 EUR
-2.2 (-0.7%)
Last: Jan 30, 2026, 07:00 PM
Taking everything into account, HDI scores 5 out of 10 in our fundamental rating. HDI was compared to 56 industry peers in the Specialty Retail industry. While HDI has a great profitability rating, there are quite some concerns on its financial health. HDI does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- In the past year HDI was profitable.
- HDI had a positive operating cash flow in the past year.
- HDI had positive earnings in each of the past 5 years.
- 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 92.86% of its industry peers.
- HDI has a better Return On Equity (120.35%) than 98.21% of its industry peers.
- HDI has a better Return On Invested Capital (21.84%) than 92.86% of its industry peers.
- HDI had an Average Return On Invested Capital over the past 3 years of 29.60%. This is significantly above the industry average of 10.20%.
- The last Return On Invested Capital (21.84%) 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 | 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
- With an excellent Profit Margin value of 8.77%, HDI belongs to the best of the industry, outperforming 91.07% 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 94.64% of its industry peers.
- HDI's Operating Margin has been stable in the last couple of years.
- HDI has a Gross Margin of 33.36%. This is comparable to the rest of the industry: HDI outperforms 46.43% of 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
- 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.
- 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.
- Looking at the Debt to FCF ratio, with a value of 4.02, HDI is in the better half of the industry, outperforming 67.86% 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: 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/WACC2.33
WACC9.39%
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 62.50% of the companies in the same industry.
- 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 has a Quick ratio of 0.29. This is amonst the worse of the industry: HDI underperforms 80.36% 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.
- HDI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.80% yearly.
- The Revenue has been growing slightly by 7.50% in the past year.
- 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.
- 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 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.
- 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
- A Price/Earnings ratio of 24.82 indicates a rather expensive valuation of HDI.
- Compared to the rest of the industry, the Price/Earnings ratio of HDI indicates a somewhat cheap valuation: HDI is cheaper than 66.07% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.30. HDI is around the same levels.
- With a Price/Forward Earnings ratio of 23.96, HDI is valued on the expensive side.
- The rest of the industry has a similar Price/Forward Earnings ratio as HDI.
- When comparing the Price/Forward Earnings ratio of HDI to the average of the S&P500 Index (25.57), we can say HDI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.82 | ||
| Fwd PE | 23.96 |
4.2 Price Multiples
- HDI's Enterprise Value to EBITDA ratio is in line with the industry average.
- HDI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.6 | ||
| EV/EBITDA | 16.58 |
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)172.8
PEG (5Y)3.18
EPS Next 2Y2.03%
EPS Next 3Y4.29%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.41%, HDI has a reasonable but not impressive dividend return.
- HDI's Dividend Yield is a higher than the industry average which is at 1.47.
- Compared to an average S&P500 Dividend Yield of 1.82, HDI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
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.
- HDI's earnings are growing slower than its dividend. 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%.