HOME DEPOT INC (HDI.DE) Stock Fundamental Analysis
Europe - FRA:HDI - US4370761029 - Common Stock
329.75 EUR
-1.3 (-0.39%)
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 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. HDI is quite expensive at the moment. It does show a decent growth rate.
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.
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 Return On Assets of 14.62%. This is amongst the best in the industry. HDI outperforms 92.86% of its industry peers.
The Return On Equity of HDI (137.17%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 23.77%, HDI belongs to the top of the industry, outperforming 94.64% 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 10.42%.
The 3 year average ROIC (29.60%) for HDI is well above the current ROIC(23.77%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.62% | ||
| ROE | 137.17% | ||
| ROIC | 23.77% |
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 8.86%, HDI belongs to the best of the industry, outperforming 91.07% of the companies in the same industry.
HDI's Profit Margin has declined in the last couple of years.
HDI has a Operating Margin of 13.09%. This is amongst the best in the industry. HDI outperforms 94.64% of its industry peers.
In the last couple of years the Operating Margin of HDI has remained more or less at the same level.
Looking at the Gross Margin, with a value of 33.35%, HDI is in line with its industry, outperforming 51.79% 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 | 13.09% | ||
| PM (TTM) | 8.86% | ||
| GM | 33.35% |
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 about the same amout of shares outstanding than it did 1 year ago.
HDI has less shares outstanding than it did 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 6.27. This indicates that HDI is financially healthy and has little risk of bankruptcy at the moment.
HDI's Altman-Z score of 6.27 is amongst the best of the industry. HDI outperforms 96.43% of its industry peers.
HDI has a debt to FCF ratio of 3.68. This is a good value and a sign of high solvency as HDI would need 3.68 years to pay back of all of its debts.
HDI's Debt to FCF ratio of 3.68 is fine compared to the rest of the industry. HDI outperforms 75.00% of its industry peers.
A Debt/Equity ratio of 4.31 is on the high side and indicates that HDI has dependencies on debt financing.
HDI has a Debt to Equity ratio of 4.31. This is amonst the worse of the industry: HDI underperforms 89.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.31 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 6.27 |
ROIC/WACC2.6
WACC9.14%
2.3 Liquidity
A Current Ratio of 1.15 indicates that HDI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.15, HDI perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
A Quick Ratio of 0.34 indicates that HDI may have some problems paying its short term obligations.
HDI has a Quick ratio of 0.34. This is in the lower half of the industry: HDI underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.47% over the past year.
The Earnings Per Share has been growing slightly by 7.80% on average over the past years.
The Revenue has grown by 8.52% in the past year. This is quite good.
HDI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.67% yearly.
EPS 1Y (TTM)0.47%
EPS 3Y-1.31%
EPS 5Y7.8%
EPS Q2Q%1.74%
Revenue 1Y (TTM)8.52%
Revenue growth 3Y1.81%
Revenue growth 5Y7.67%
Sales Q2Q%4.87%
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 7.42% on average per year.
HDI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.83% yearly.
EPS Next Y3.59%
EPS Next 2Y6%
EPS Next 3Y6.88%
EPS Next 5Y7.42%
Revenue Next Year3.29%
Revenue Next 2Y3.97%
Revenue Next 3Y4.07%
Revenue Next 5Y3.83%
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.
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
HDI is valuated quite expensively with a Price/Earnings ratio of 25.50.
Based on the Price/Earnings ratio, HDI is valued a bit cheaper than 64.29% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.10, HDI is valued at the same level.
A Price/Forward Earnings ratio of 22.72 indicates a rather expensive valuation of HDI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HDI is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.52. HDI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.5 | ||
| Fwd PE | 22.72 |
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.
HDI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.64 | ||
| EV/EBITDA | 16.8 |
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)7.1
PEG (5Y)3.27
EPS Next 2Y6%
EPS Next 3Y6.88%
5. Dividend
5.1 Amount
HDI has a Yearly Dividend Yield of 2.39%.
Compared to an average industry Dividend Yield of 3.39, HDI pays a bit more dividend than its industry peers.
HDI's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
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 61.82% of its income as dividend. 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.
DP61.82%
EPS Next 2Y6%
EPS Next 3Y6.88%
FRA:HDI (10/31/2025, 7:00:00 PM)
329.75
-1.3 (-0.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners73.35%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap328.23B
Revenue(TTM)165.05B
Net Income(TTM)14.63B
Analysts77.92
Price Target376.54 (14.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
Yearly Dividend7.75
Dividend Growth(5Y)10.5%
DP61.82%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.71%
Min EPS beat(2)-3.87%
Max EPS beat(2)-3.55%
EPS beat(4)0
Avg EPS beat(4)-3.02%
Min EPS beat(4)-3.87%
Max EPS beat(4)-2.12%
EPS beat(8)0
Avg EPS beat(8)-2.19%
EPS beat(12)1
Avg EPS beat(12)-1.71%
EPS beat(16)3
Avg EPS beat(16)-0.21%
Revenue beat(2)0
Avg Revenue beat(2)-2.32%
Min Revenue beat(2)-3.08%
Max Revenue beat(2)-1.56%
Revenue beat(4)0
Avg Revenue beat(4)-1.73%
Min Revenue beat(4)-3.08%
Max Revenue beat(4)-0.7%
Revenue beat(8)0
Avg Revenue beat(8)-2.28%
Revenue beat(12)0
Avg Revenue beat(12)-2.42%
Revenue beat(16)2
Avg Revenue beat(16)-1.66%
PT rev (1m)1.04%
PT rev (3m)1.3%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)0.24%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.5 | ||
| Fwd PE | 22.72 | ||
| P/S | 2.3 | ||
| P/FCF | 26.64 | ||
| P/OCF | 21.21 | ||
| P/B | 35.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.8 |
EPS(TTM)12.93
EY3.92%
EPS(NY)14.51
Fwd EY4.4%
FCF(TTM)12.38
FCFY3.75%
OCF(TTM)15.55
OCFY4.71%
SpS143.57
BVpS9.28
TBVpS-15.42
PEG (NY)7.1
PEG (5Y)3.27
Graham Number51.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.62% | ||
| ROE | 137.17% | ||
| ROCE | 31.21% | ||
| ROIC | 23.77% | ||
| ROICexc | 24.77% | ||
| ROICexgc | 43.28% | ||
| OM | 13.09% | ||
| PM (TTM) | 8.86% | ||
| GM | 33.35% | ||
| FCFM | 8.62% |
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-Score5
Asset Turnover1.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.31 | ||
| Debt/FCF | 3.68 | ||
| Debt/EBITDA | 1.79 | ||
| Cap/Depr | 91% | ||
| Cap/Sales | 2.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.8% | ||
| Profit Quality | 97.27% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.34 | ||
| Altman-Z | 6.27 |
F-Score5
WACC9.14%
ROIC/WACC2.6
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)0.47%
EPS 3Y-1.31%
EPS 5Y7.8%
EPS Q2Q%1.74%
EPS Next Y3.59%
EPS Next 2Y6%
EPS Next 3Y6.88%
EPS Next 5Y7.42%
Revenue 1Y (TTM)8.52%
Revenue growth 3Y1.81%
Revenue growth 5Y7.67%
Sales Q2Q%4.87%
Revenue Next Year3.29%
Revenue Next 2Y3.97%
Revenue Next 3Y4.07%
Revenue Next 5Y3.83%
EBIT growth 1Y2.07%
EBIT growth 3Y-2.61%
EBIT growth 5Y6.32%
EBIT Next Year15.96%
EBIT Next 3Y9.51%
EBIT Next 5Y6.31%
FCF growth 1Y-12.53%
FCF growth 3Y5.24%
FCF growth 5Y8.2%
OCF growth 1Y-8.99%
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.
What is the valuation status of HOME DEPOT INC (HDI.DE) stock?
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.
How financially healthy is HOME DEPOT INC?
The financial health rating of HOME DEPOT INC (HDI.DE) is 5 / 10.
Can you provide the expected EPS growth for HDI stock?
The Earnings per Share (EPS) of HOME DEPOT INC (HDI.DE) is expected to grow by 3.59% in the next year.