HOME DEPOT INC (HDI.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HDI - US4370761029 - Common Stock
321.55 EUR
+4.25 (+1.34%)
Overall HDI gets a fundamental rating of 5 out of 10. We evaluated HDI against 59 industry peers in the Specialty Retail industry. While HDI belongs to the best of the industry regarding profitability, there are concerns on its financial health. HDI has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year HDI was profitable.
HDI had a positive operating cash flow in the past year.
Each year in the past 5 years HDI has been profitable.
HDI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 13.72%, HDI belongs to the best of the industry, outperforming 89.83% of the companies in the same industry.
The Return On Equity of HDI (120.35%) is better than 98.31% of its industry peers.
HDI's Return On Invested Capital of 21.84% is amongst the best of the industry. HDI outperforms 88.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HDI is significantly above the industry average of 11.42%.
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
HDI has a Profit Margin of 8.77%. This is amongst the best in the industry. HDI outperforms 88.14% of its industry peers.
In the last couple of years the Profit Margin of HDI has declined.
HDI has a better Operating Margin (12.96%) than 91.53% of its industry peers.
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.
HDI has more shares outstanding than it did 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
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.
HDI's Debt to FCF ratio of 4.02 is fine compared to the rest of the industry. HDI outperforms 64.41% of its industry peers.
HDI has a Debt/Equity ratio of 4.09. This is a high value indicating a heavy dependency on external financing.
HDI has a Debt to Equity ratio of 4.09. This is amonst the worse of the industry: HDI underperforms 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
WACC9.43%
2.3 Liquidity
A Current Ratio of 1.05 indicates that HDI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.05, HDI is not doing good in the industry: 64.41% of the companies in the same industry are doing better.
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.
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%.
The Earnings Per Share has been growing slightly by 7.80% on average over the past years.
HDI shows a small growth in Revenue. In the last year, the Revenue has grown by 7.50%.
Measured over the past years, HDI shows a small growth in Revenue. The Revenue has been growing by 7.67% on average per year.
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 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.
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 25.06 indicates a quite 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 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 27.25.
A Price/Forward Earnings ratio of 24.23 indicates a rather expensive valuation of HDI.
HDI's Price/Forward Earnings is on the same level as the industry average.
HDI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.06 | ||
| Fwd PE | 24.23 |
4.2 Price Multiples
HDI's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. HDI is more expensive than 64.41% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HDI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.87 | ||
| EV/EBITDA | 16.63 |
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)175.69
PEG (5Y)3.21
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.
Compared to an average industry Dividend Yield of 1.34, HDI pays a bit more dividend than its industry peers.
HDI's Dividend Yield is a higher than the S&P500 average which is at 1.92.
| 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 (1/12/2026, 7:00:00 PM)
321.55
+4.25 (+1.34%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners74.02%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap320.11B
Revenue(TTM)166.19B
Net Income(TTM)14.58B
Analysts76.52
Price Target349.26 (8.62%)
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 | 25.06 | ||
| Fwd PE | 24.23 | ||
| P/S | 2.25 | ||
| P/FCF | 26.87 | ||
| P/OCF | 21.21 | ||
| P/B | 30.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.63 |
EPS(TTM)12.83
EY3.99%
EPS(NY)13.27
Fwd EY4.13%
FCF(TTM)11.97
FCFY3.72%
OCF(TTM)15.16
OCFY4.72%
SpS142.78
BVpS10.41
TBVpS-17.67
PEG (NY)175.69
PEG (5Y)3.21
Graham Number54.82
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
WACC9.43%
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%.