HD

The Home Depot, Inc.

Fundamental data last updated:September 24, 2026

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company profile

SECTOR

Consumer Cyclical

industry

Home Improvement

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

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

24.87

Market Cap ($M USD)

$349.64B

Forward P/E

17.71

PEG

0.44

PRICE TO SALES

2.10

PRICE TO BOOK

25.12

EV / EBITDA

16.77

5-Year Average P/E

Free Cash Flow Yield

4.09%

DCF Value

$298.36

Graham Number

$66.54

Price to FCF

24.42

EV to FCF

28.36

Earnings Yield

4.02%

FCF Yield

4.09%

DIVIDEND

Yield

2.64%

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

$195.68B

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

5.72

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 misaligned with its intrinsic value. Trading above its DCF value and Graham Number, the stock seems overvalued. However, a Forward P/E of 17.81 and a robust Altman Z-score of 5.66 suggest financial stability and growth potential. The Earnings Yield of 3.997% indicates moderate returns, but the high Price/Book ratio of 25.27 raises concerns about overvaluation. Overall, while the company shows strong fundamentals, the market may be pricing in perfection.

AI Exposure / Tech Reliance

In the realm of AI and tech adaptation, Home Depot is well-positioned due to its industry focus on home improvement. The sector's resilience to digital disruption allows for gradual integration of AI in supply chain and customer service. This positions the company to leverage technology without immediate existential threats.

The Bull Case

For the value-driven investor, Home Depot offers compelling reasons to buy. With a stellar ROIC of 28.67%, the company demonstrates exceptional capital efficiency. A Piotroski F-Score of 5 and a solid operating margin of 12.45% highlight its operational robustness. The FCF Yield, though modest, underscores a steady cash flow, reflecting strong pricing power and efficient management.

The Bear Case

Despite its strengths, Home Depot faces structural risks. The Price/Book ratio of 25.27 and Price/Sales of 2.11 indicate a potentially overvalued stock. The quick ratio of 0.28 suggests liquidity constraints, and the stock's proximity to its 52-week high implies technical overextension. These factors could deter cautious investors wary of paying a premium for growth.

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

21.70%

Distance to 52-Week Low

17.55%

EARNINGS SURPRISE %

0.59%

50-DAY SMA

$323.52

200-DAY SMA

$355.06

⚠️ 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.