HOME DEPOT INC (HDI.DE) Stock Fundamental Analysis
FRA:HDI - Deutsche Boerse Ag - US4370761029 - Common Stock - Currency: EUR
HDI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 does not seem to be growing, but still is valued expensively.
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.
Each year in the past 5 years HDI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HDI (14.76%) is better than 96.30% of its industry peers.
With an excellent Return On Equity value of 184.02%, HDI belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
HDI has a better Return On Invested Capital (24.31%) than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HDI is significantly above the industry average of 8.40%.
The 3 year average ROIC (29.60%) for HDI is well above the current ROIC(24.31%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.76% | ||
| ROE | 184.02% | ||
| ROIC | 24.31% |
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 8.98% is amongst the best of the industry. HDI outperforms 94.44% of its industry peers.
In the last couple of years the Profit Margin of HDI has declined.
HDI has a better Operating Margin (13.24%) than 94.44% of its industry peers.
HDI's Operating Margin has been stable in the last couple of years.
The Gross Margin of HDI (33.34%) 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 | 13.24% | ||
| PM (TTM) | 8.98% | ||
| GM | 33.34% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HDI is creating value.
The number of shares outstanding for HDI remains at a similar level compared to 1 year ago.
The number of shares outstanding for HDI has been reduced compared to 5 years ago.
The debt/assets ratio for HDI has been reduced compared to a year ago.
2.2 Solvency
HDI has an Altman-Z score of 6.14. This indicates that HDI is financially healthy and has little risk of bankruptcy at the moment.
HDI has a better Altman-Z score (6.14) than 96.30% of its industry peers.
HDI has a debt to FCF ratio of 3.44. This is a good value and a sign of high solvency as HDI would need 3.44 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 3.44, HDI belongs to the best of the industry, outperforming 81.48% of the companies in the same industry.
A Debt/Equity ratio of 5.96 is on the high side and indicates that HDI has dependencies on debt financing.
HDI's Debt to Equity ratio of 5.96 is on the low side compared to the rest of the industry. HDI is outperformed by 87.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.96 | ||
| Debt/FCF | 3.44 | ||
| Altman-Z | 6.14 |
ROIC/WACC2.63
WACC9.23%
2.3 Liquidity
A Current Ratio of 1.09 indicates that HDI should not have too much problems paying its short term obligations.
The Current ratio of HDI (1.09) is comparable to the rest of the industry.
A Quick Ratio of 0.28 indicates that HDI may have some problems paying its short term obligations.
HDI has a Quick ratio of 0.28. This is amonst the worse of the industry: HDI underperforms 81.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.28 |
3. Growth
3.1 Past
HDI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.40%.
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 7.33% 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)-0.4%
EPS 3Y-1.31%
EPS 5Y7.8%
EPS Q2Q%-1.93%
Revenue 1Y (TTM)7.33%
Revenue growth 3Y1.81%
Revenue growth 5Y7.67%
Sales Q2Q%9.44%
3.2 Future
HDI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.66% yearly.
HDI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.93% yearly.
EPS Next Y3.66%
EPS Next 2Y6.15%
EPS Next 3Y6.85%
EPS Next 5Y6.66%
Revenue Next Year3.51%
Revenue Next 2Y3.83%
Revenue Next 3Y3.94%
Revenue Next 5Y3.93%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
Based on the Price/Earnings ratio of 24.89, the valuation of HDI can be described as rather expensive.
68.52% of the companies in the same industry are more expensive than HDI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.30. HDI is around the same levels.
With a Price/Forward Earnings ratio of 21.98, HDI is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as HDI.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, HDI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.89 | ||
| Fwd PE | 21.98 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HDI.
The rest of the industry has a similar Price/Free Cash Flow ratio as HDI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.17 | ||
| EV/EBITDA | 16.69 |
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)6.8
PEG (5Y)3.19
EPS Next 2Y6.15%
EPS Next 3Y6.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.48%, HDI has a reasonable but not impressive dividend return.
HDI's Dividend Yield is a higher than the industry average which is at 4.81.
Compared to an average S&P500 Dividend Yield of 2.37, HDI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
5.2 History
The dividend of HDI is nicely growing with an annual growth rate of 10.50%!
Dividend Growth(5Y)10.5%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
61.38% 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.
DP61.38%
EPS Next 2Y6.15%
EPS Next 3Y6.85%
FRA:HDI (7/11/2025, 7:00:00 PM)
315.55
-6.35 (-1.97%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners74.51%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap313.63B
Analysts78.8
Price Target369.33 (17.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
Yearly Dividend7.64
Dividend Growth(5Y)10.5%
DP61.38%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.21%
Min EPS beat(2)-3.87%
Max EPS beat(2)-2.55%
EPS beat(4)0
Avg EPS beat(4)-2.29%
Min EPS beat(4)-3.87%
Max EPS beat(4)-0.62%
EPS beat(8)1
Avg EPS beat(8)-1.55%
EPS beat(12)1
Avg EPS beat(12)-1.48%
EPS beat(16)3
Avg EPS beat(16)-0.05%
Revenue beat(2)0
Avg Revenue beat(2)-1.56%
Min Revenue beat(2)-1.56%
Max Revenue beat(2)-1.55%
Revenue beat(4)0
Avg Revenue beat(4)-1.62%
Min Revenue beat(4)-2.66%
Max Revenue beat(4)-0.7%
Revenue beat(8)0
Avg Revenue beat(8)-2.06%
Revenue beat(12)0
Avg Revenue beat(12)-2.32%
Revenue beat(16)2
Avg Revenue beat(16)-1.6%
PT rev (1m)-3.34%
PT rev (3m)-7.73%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)0.02%
EPS NY rev (1m)0.19%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.89 | ||
| Fwd PE | 21.98 | ||
| P/S | 2.25 | ||
| P/FCF | 24.17 | ||
| P/OCF | 19.7 | ||
| P/B | 46.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.69 |
EPS(TTM)12.68
EY4.02%
EPS(NY)14.36
Fwd EY4.55%
FCF(TTM)13.06
FCFY4.14%
OCF(TTM)16.01
OCFY5.08%
SpS140.02
BVpS6.84
TBVpS-17.62
PEG (NY)6.8
PEG (5Y)3.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.76% | ||
| ROE | 184.02% | ||
| ROCE | 31.94% | ||
| ROIC | 24.31% | ||
| ROICexc | 24.81% | ||
| ROICexgc | 43.5% | ||
| OM | 13.24% | ||
| PM (TTM) | 8.98% | ||
| GM | 33.34% | ||
| FCFM | 9.32% |
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-Score4
Asset Turnover1.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.96 | ||
| Debt/FCF | 3.44 | ||
| Debt/EBITDA | 1.86 | ||
| Cap/Depr | 87.9% | ||
| Cap/Sales | 2.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.1% | ||
| Profit Quality | 103.79% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.28 | ||
| Altman-Z | 6.14 |
F-Score4
WACC9.23%
ROIC/WACC2.63
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)-0.4%
EPS 3Y-1.31%
EPS 5Y7.8%
EPS Q2Q%-1.93%
EPS Next Y3.66%
EPS Next 2Y6.15%
EPS Next 3Y6.85%
EPS Next 5Y6.66%
Revenue 1Y (TTM)7.33%
Revenue growth 3Y1.81%
Revenue growth 5Y7.67%
Sales Q2Q%9.44%
Revenue Next Year3.51%
Revenue Next 2Y3.83%
Revenue Next 3Y3.94%
Revenue Next 5Y3.93%
EBIT growth 1Y1.71%
EBIT growth 3Y-2.61%
EBIT growth 5Y6.32%
EBIT Next Year16.25%
EBIT Next 3Y9.45%
EBIT Next 5Y6.28%
FCF growth 1Y15.81%
FCF growth 3Y5.24%
FCF growth 5Y8.2%
OCF growth 1Y13.37%
OCF growth 3Y6.13%
OCF growth 5Y7.68%