Stock · HD · Consumer Cyclical
United States · Large Cap · listed since 1981 · Revenue 12 mo. $169.2B
Price as of 11/06/2026
Summary
44.9 of 100
Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.
Analysis
What the price requires
If free cash flow stays at €11.3B (2026), it supports €126.1B. The remaining €170.7B of the market value assume it grows 12.0% a year for 10 years and not at all afterwards.
Required FCF growth per year
12.0%
no growth afterwards
Price to operating cash flow 18.2×, below its usual range.
Middle half of 20 quarters: 18.3× to 20.3×, median 19.5×.
Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.
with respect to the priced-in expectation
with respect to the priced-in expectation
AI summary of the 2026 annual report
A language model selected and condensed statements from the report. Each statement carries a verbatim quote. The selection is not complete and shows the state of the report. It gives no rating and does not feed into the score.
Form 10-K, fiscal year ended 02/01/2026, filed 03/18/2026. Open the report at the SEC
The company sells home improvement products, building materials, lawn and garden products, décor products and facilities MRO products, in stores and online.
We offer our customers a wide assortment of home improvement products, building materials, lawn and garden products, décor products, and facilities MRO products, in stores and online.The company's online product offerings add to what its stores carry and act as an extended aisle.
Our online product offerings complement our stores by serving as an extended aisle.The company also offers services, including home improvement installation and tool and equipment rental.
We also provide a number of services, including home improvement installation services, and tool and equipment rental.The acquisition of GMS by SRS in fiscal 2025 added specialty interior building products, such as wallboard, ceilings and steel framing, for residential and commercial projects.
The acquisition of GMS by SRS in fiscal 2025 further expanded our ability to serve Pros by adding specialty interior building products such as wallboard, ceilings, steel framing and complementary products for residential and commercial projects.DIFM customers are usually homeowners who hire Pros to complete their projects or installations.
Intersecting our DIY customers and our Pros are our DIFM customers. These customers are typically homeowners who use Pros to complete their projects or installations.The company also sells MRO products and related services to operators of multifamily, hospitality, healthcare and government housing facilities, among others, mainly through HD Supply.
We also provide MRO products and related value-added services to multifamily, hospitality, healthcare, and government housing facilities, among others, primarily through our subsidiary HD Supply.The company bought SRS in fiscal 2024, and SRS sells products to specialty trade roofers, landscapers and pool contractors.
In fiscal 2024, we acquired SRS, which sells products to specialty trade roofers, landscapers, and pool contractors.In stores and online, the company competes mainly on customer experience, price, quality, product availability, range and innovation, and delivery options.
Both in-store and online, we compete primarily based on customer experience; price; quality; product availability, assortment, and innovation; and delivery options and capabilities.Competitors range from traditional store-based retailers to multichannel and purely online ones. They include other home improvement retailers, hardware stores of all sizes, building materials suppliers and lumber yards.
These competitors range from traditional brick-and-mortar, to multichannel, to exclusively online, and they include a number of other home improvement retailers; local, regional and national hardware stores; electrical, plumbing and building materials supply houses; and lumber yards.Online and digital tools, including AI tools, make it easier for new competitors to enter, make prices easier to compare and increase competition.
Online and other digital capabilities, as well as AI tools, facilitate competitive entry, price transparency, and comparison shopping, increasing the level of competition we face.For example, high interest rates throughout fiscal 2025 and a significant rise in home prices in recent years have affected housing affordability.
For instance, the high interest rate environment that persisted throughout fiscal 2025 and the significant increase in home prices in recent years have impacted housing affordability.Major changes in tax or trade policy, tariffs or trade relations could significantly harm costs, demand and profit on retail products the company sources outside the U.S., including from Mexico, Canada and China.
For the retail products we source, directly or indirectly, outside of the U.S., including Mexico, Canada and China, major changes in tax or trade policies, tariffs or trade relations could significantly adversely impact the cost of, demand for, and profitability of retail product sales in our U.S. or other locations.Proprietary products bring certain increased risks, including regulatory, product liability, intellectual property, supplier relations and reputation risks.
Our proprietary products subject us to certain increased risks, including regulatory, product liability, intellectual property, supplier relations, and reputational risks.If the company cannot manage its installation services business effectively, it could lose sales, face fines or lawsuits, suffer reputational damage or lose its general contractor licenses.
If we are unable to effectively manage our installation services business, we could lose sales and be subject to fines, lawsuits, reputational damage or the loss of our general contractor licenses.Since the last quarter
Q2 → Q3 2026
6 more unchanged: Revenue, 12 mo., Gross margin, EBIT margin, FCF margin, Net debt, Shares outstanding
Derivation
Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.
Price as of 11/06/2026.
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Return on equity | 110.48% | 11.07% | Rank 99 |
| Return on capital (Greenblatt) | 53.30% | 17.91% | Rank 87 |
| EBIT margin | 12.68% | 10.89% | Rank 57 |
| FCF margin | 7.68% | 8.07% | Rank 48 |
| Gross margin | 33.32% | 34.00% | Rank 48 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Revenue growth, 1 year | 3.24% | 5.10% | Rank 38 |
| Earnings growth, 3 years per year | −5.24% | 8.34% | Rank 25 |
| Earnings growth, 5 years per year | 3.53% | 15.10% | Rank 29 |
| Sustainable growth (ROE × retained earnings) | 2.23% | 4.34% | Rank 22 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Earnings yield | 4.13% | 4.32% | Rank 48 |
| FCF yield | 3.82% | 4.17% | Rank 46 |
| EV/saleslower is better | 2.40 | 1.95 | Rank 41 |
| EV/EBITlower is better | 18.89 | 16.88 | Rank 43 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Share price, 1 year | −16.54% | −4.35% | Rank 32 |
| Share price, 6 months | 8.68% | 3.63% | Rank 64 |
| Share price, 3 months | 1.71% | 2.92% | Rank 46 |
| Distance from 52-week high | −12.17% | −15.83% | Rank 59 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Accruals (Sloan)lower is better | 6.77% | 0.39% | Rank 15 |
| Change in share countlower is better | 0.40% | −0.37% | Rank 19 |
| Dividend streak in years | 37 | 4 | Rank 99 |
| Price reaction to results, market-adjusted | 0.69% | 0.16% | Rank 57 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Equity ratio | 12.19% | 40.59% | Rank 11 |
| Net debt/EBITDAlower is better | 2.54 | 0.99 | Rank 29 |
| Debt to equitylower is better | 5.10 | 0.49 | Rank 5 |
| Volatility, 1 yearlower is better | 27.13% | 33.42% | Rank 79 |
Ten years in figures
| Year | Revenue, $B | EBIT margin | FCF, $B | Shares | Net debt, $B |
|---|---|---|---|---|---|
| 2017 | 94.6 | 14.2% | 8.2 | 1.23B | 21.1 |
| 2018 | 100.9 | 14.6% | 10.1 | 1.18B | 23.4 |
| 2019 | 108.2 | 14.4% | 10.7 | 1.14B | 27.4 |
| 2020 | 110.2 | 14.4% | 11.0 | 1.10B | 35.2 |
| 2021 | 132.1 | 13.8% | 16.4 | 1.08B | 35.5 |
| 2022 | 151.2 | 15.2% | 14.0 | 1.06B | 43.9 |
| 2023 | 157.4 | 15.3% | 11.5 | 1.03B | 47.6 |
| 2024 | 152.7 | 14.2% | 17.9 | 1.00B | 48.5 |
| 2025 | 159.5 | 13.5% | 16.3 | 993M | 60.6 |
| 2026 | 164.7 | 12.7% | 12.6 | 997M | 64.0 |
2 of 7 StockScorer Score rules met · How the score is built
The Home Depot Inc mainly meets criteria in the Profitability category. Result from 18 strategies checked.
The Home Depot Inc is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.
2 of 7 rules met
3 of 11 points
Detail data
Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.
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Selected fundamental metrics for The Home Depot Inc.
| Metric | Stock | Sector |
|---|---|---|
| P/E ratio | 24.2 | 21.6 |
| P/B ratio | 26.7 | 2.4 |
| Return on equity (ROE) | 110.5% | 11.1% |
| Equity ratio | 12.2% | 40.6% |
| Debt-to-equity (D/E) | 5.10 | 0.49 |
| Dividend yield | 2.7% | 2.2% |
How comparable stocks in the same sector score in the StockScorer model.
| Symbol | Company | Rating |
|---|---|---|
| HD | The Home Depot Incthis page | |
| LOW | Lowe's Companies Inc | Medium5.5 |
| WES.AX | Wesfarmers Ltd | locked |
| KGF.L | Kingfisher PLC | locked |
| HBH.DE | Hornbach Holding Vz. | locked |
| MCD | McDonald’s Corporation | locked |
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