HD

The Home Depot, Inc.

Fundamental data last updated:May 12, 2026

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company profile

SECTOR

Consumer Cyclical

industry

Home Improvement

Exchange

NYSE

County of HQ

US

Next Earnings Date

05/19/2026

Business Summary

The Home Depot, Inc. operates as a home improvement retailer. It operates The Home Depot stores that sell various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products The company also offers installation services for flooring, cabinets and cabinet makeovers, countertops, furnaces and central air systems, and windows. In addition, it provides tool and equipment rental services. The company primarily serves homeowners; and professional renovators/remodelers, general contractors, maintenance professionals, handymen, property managers, building service contractors, and specialty tradesmen, such as electricians, plumbers, and painters. It also sells its products through websites, including homedepot.com; blinds.com, an online site for custom window coverings; and thecompanystore.com, an online site for textiles and décor products. As of December 31, 2021, the company operated 2,317 stores in the United States. The Home Depot, Inc. was incorporated in 1978 and is based in Atlanta, Georgia.

 


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VALUATION

P/E

22.01

Market Cap ($M USD)

$312.57B

Forward P/E

15.79

PEG

0.40

PRICE TO SALES

1.90

PRICE TO BOOK

24.32

EV / EBITDA

15.50

5-Year Average P/E

Free Cash Flow Yield

4.05%

DCF Value

$303.65

Graham Number

$64.33

Price to FCF

24.72

EV to FCF

29.77

Earnings Yield

4.54%

FCF Yield

4.05%

DIVIDEND

Yield

2.94%

Annual Payout

$9.23

Payout Ratio

64.65%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$14.26

Next Year EPS Growth Estimate

$19.88

Next Year Revenue Growth Estimate

$196.48B

Return on Equity (ROE)

130.02%

FREE CASH FLOW

Operating Margin

12.68%

Debt-to-Equity

5.10

Piotroski F-Score

5

Altman Z-Score

5.56

Return on Invested Capital (ROIC)

28.75%

Current Ratio

1.06

Quick Ratio

0.26

Net Debt to EBITDA

2.63

Interest Coverage

8.66

Gross Profit margin

33.32%

FCF PER SHARE

$12.74

REVENUE PER SHARE

$165.84

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Gainseekers Quantitative Analysis

Summary

The market seems to be mispricing The Home Depot, Inc. relative to its DCF value, with recent pricing indicating it traded above its intrinsic worth. The Forward P/E of 15.97 suggests a more reasonable valuation compared to its current P/E, hinting at expected earnings growth. With an Altman Z-score of 5.56, the company is financially robust, indicating low bankruptcy risk. However, the Earnings Yield of 4.49% is not particularly enticing for deep value hunters. Overall, the stock’s valuation appears stretched when juxtaposed with its Graham Number.

AI Exposure / Tech Reliance

In the realm of AI and tech adaptation, Home Depot stands resilient due to its industry focus on tangible goods and home improvement services. While not a tech company, its ability to integrate AI for inventory management and customer service could enhance operational efficiency. The nature of its business provides a buffer against rapid tech obsolescence.

The Bull Case

For the value or GARP investor, Home Depot's appeal lies in its impressive ROIC of 28.75%, showcasing exceptional capital efficiency. The company's FCF Yield, though modest, indicates consistent cash generation, while a Piotroski F-Score of 5 suggests moderate financial health. Its operating margin of 12.68% underscores strong pricing power, making it a compelling choice for those seeking stable returns in a cyclical sector.

The Bear Case

Despite its strengths, Home Depot faces structural risks with a Price/Book ratio of 24.60, signaling potential overvaluation. The Price/Sales ratio of 1.92 further highlights this concern, suggesting the market may be pricing in excessive growth expectations. Additionally, the quick ratio of 0.26 raises liquidity concerns, indicating potential short-term financial strain. These factors, combined with its proximity to the 52-week high, suggest caution is warranted.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$408.08

Institutional Ownership %

1-Year Beta

1.00

Insider Buying % (6 Mo)

Distance to 52-Week High

35.99%

Distance to 52-Week Low

1.09%

EARNINGS SURPRISE %

7.51%

50-DAY SMA

$337.29

200-DAY SMA

$369.55

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.