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The Home Depot, Inc.

Fundamental data last updated:July 12, 2026

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company profile

SECTOR

Consumer Cyclical

industry

Home Improvement

Exchange

NYSE

County of HQ

US

Next Earnings Date

08/18/2026

Business Summary

The Home Depot, Inc. operates as a prominent retailer specializing in home renovation and improvement. Through its expansive network of "The Home Depot" stores, it furnishes consumers with an extensive array of goods, including building materials, home enhancement products, lawn and garden supplies, decorative items, and facilities maintenance, repair, and operational (MRO) supplies. In addition to selling products, the company extends professional installation services for key home features like flooring, cabinetry (including makeovers), countertops, furnaces and central air conditioning systems, and window replacements. Customers can also access tool and equipment rental options. Its diverse clientele includes both individual homeowners and a broad spectrum of professional clients, such as renovators, general contractors, maintenance personnel, handymen, property managers, building service contractors, and specialized tradespeople like electricians, plumbers, and painters. The firm also distributes its merchandise through several online platforms, notably homedepot.com, along with specialized sites such as blinds.com for bespoke window coverings and thecompanystore.com for home textiles and decorative goods. By the end of 2021, the corporation operated a total of 2,317 outlets across the United States. Incorporated in 1978, The Home Depot, Inc. maintains its corporate headquarters in Atlanta, Georgia.

 


VALUATION

P/E

24.35

Market Cap ($M USD)

$342.31B

Forward P/E

17.33

PEG

0.43

PRICE TO SALES

2.05

PRICE TO BOOK

24.60

EV / EBITDA

16.47

5-Year Average P/E

Free Cash Flow Yield

4.18%

DCF Value

$293.12

Graham Number

$66.54

Price to FCF

23.91

EV to FCF

27.85

Earnings Yield

4.11%

FCF Yield

4.18%

DIVIDEND

Yield

2.70%

Annual Payout

$9.26

Payout Ratio

65.56%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$14.10

Next Year EPS Growth Estimate

$19.81

Next Year Revenue Growth Estimate

$19.57T

Return on Equity (ROE)

113.30%

FREE CASH FLOW

Operating Margin

12.45%

Debt-to-Equity

5.10

Piotroski F-Score

5

Altman Z-Score

5.60

Return on Invested Capital (ROIC)

28.67%

Current Ratio

1.04

Quick Ratio

0.28

Net Debt to EBITDA

2.33

Interest Coverage

8.61

Gross Profit margin

33.13%

FCF PER SHARE

$14.40

REVENUE PER SHARE

$167.60

Gainseekers Quantitative Analysis

Summary

The market’s current pricing of Home Depot appears to be a mixed bag. While the stock traded above its DCF value, indicating potential overvaluation, the Forward P/E of 17.43 suggests a more reasonable future outlook. The Altman Z-score of 5.65 signals robust financial health, reducing bankruptcy risk. However, the Price/Book ratio of 24.73 raises eyebrows, hinting at a premium valuation. Despite these concerns, the impressive Earnings Yield of 4.08% reflects solid earnings potential relative to its price.

AI Exposure / Tech Reliance

In the realm of AI and tech resilience, Home Depot stands on solid ground due to its industry. As a leader in home improvement, it can leverage AI for inventory management and customer personalization. This adaptability positions it well to integrate modern tech shifts into its operations.

The Bull Case

For value and GARP investors, Home Depot offers compelling reasons to buy. The ROIC of 28.67% showcases exceptional capital efficiency, translating into strong returns on invested capital. With a Free Cash Flow Yield of 4.16%, the company demonstrates its ability to generate cash, supporting its dividend and growth initiatives. The Piotroski F-Score of 5, while moderate, combined with a Gross Profit Margin of 33.13%, underscores its pricing power and operational strength.

The Bear Case

Despite its strengths, Home Depot faces structural risks. The Price/Sales ratio of 2.07 and Price/Book of 24.73 suggest a stretched valuation, potentially limiting upside. The Quick Ratio of 0.28 indicates liquidity concerns, which could be problematic in downturns. Additionally, the stock's proximity to its 52-week high raises caution about technical overextension.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$373.92

Institutional Ownership %

1-Year Beta

0.95

Insider Buying % (6 Mo)

Distance to 52-Week High

24.31%

Distance to 52-Week Low

15.79%

EARNINGS SURPRISE %

0.59%

50-DAY SMA

$324.04

200-DAY SMA

$353.57

⚠️ 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.