The Home Depot, Inc.

HD: NYSE
38Total

Lowest reading is at 14 out of 100. All scores are out of 100.

About The Company

CEO

Mr. Edward P. Decker

Market Cap

292.52 Billion USD

Sector

Consumer Cyclical

Website

https://www.homedepot.com

Last Update

26/09/2026, 10:16:55

Description

The Home Depot, Inc. operates as a home improvement retailer in the United States and internationally.

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Strongest readings

  • ✔Return on capital employed of 28.75% is above the market average of 10.00%
  • ✔Dividend growth averages 7.07% per year
  • ✔Altman-Z score of 5.41 sits above the distress range
  • ✔Share count has been falling at 1.56% per year

Weakest readings

  • ✘Returns on capital have declined over five years (15.62% lower)
  • ✘Debt is high at 3.86 times equity
  • ✘The current price sits above estimated fair value (margin of safety -94.32%)
  • ✘Priced well above the cashflow it produces (value score 14 out of 100)
  • ✘Earnings and cashflow growth is weak (growth score 24 out of 100)

Key Figures

StatusMetricValueReadingMarket avg
✘
Price / earnings (TTM)
20.48x
19.60x
✘
Margin of safety (DCF)
-94.32%
17.95%
✘
Revenue growth (5y average)
4.13%
10.97%
✔
Dividend yield (TTM)
3.15%
1.85%
✔
Share count, per year
-1.56%
0.00%
✔Return on capital employed28.75%
10.00%

The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

Valuation

14 / 100

Priced above the market on most measures.

StatusMetricValueReadingMarket avg
✘
Price / earnings
20.48x
19.60x
Free cashflow yieldN/A4.70%
Price / earnings growthN/A1.50x
Price / book17.60x
—
✘
Margin of safety
-94.32%
17.95%

The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

  • ✘Estimated intrinsic value of 16.66 USD is below the current price of 293.20 USD

Desired Margin Of Safety

0%

▼

Tip: Set your desired Margin Of Safety

Free Cash Flow Type

Annual Cashflow Growth

0%

Discount Rate

0%

Estimated Fair Value: 166.5 USD ✘

Current Price: 293.2 USD

How Does This Work?

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This calculator helps investors estimate the Intrinsic Value of a company based on the current value of future cash flows. To use the tool, simply input a desired Margin Of Safety, which is an additional discount applied to the present value of the expected future cash flows. The tool calculates the present value using a discount rate that reflects the risk and time value of money, and provides an estimated fair value for the company based on the selected margin of safety. The calculator defaults to using 5 Year Free Cash Flow Growth % and a discount rate based on the US 10-year treasury bond coupon rate. Use our performance analyser to get a feel for the impact this has on longterm investment returns and find a margin of safety you are comfortable with.

Growth

24 / 100

Growing more slowly than the market on most measures.

StatusMetricValueReadingMarket avg
✘
Revenue growth
4.13%
10.97%
✘Earnings growth-1.32%
14.48%
Cashflow growthN/A12.35%

The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

  • ✘Revenue growth has slowed this year (2.50% against a five year average of 4.13%)
  • ✘Earnings growth has slowed this year (-2.97% against a five year average of -1.32%)

Health

54 / 100

Balance sheet covers its obligations.

Measured on Leverage and capital, Funding and liquidity, Earnings quality.

StatusMetricValueReadingThreshold
✔Altman-Z score5.41
3.00
✘Piotroski score4.00
5.00
✘Debt / equity3.86x
0.80x
✔Current ratio1.06x
1.00x
✔Interest coverage8.66x
2.50x
✘Free cashflow / debt0.00x
0.15x
✔Debt / capital0.79x
1.00x

The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

    Dividend

    52 / 100

    Covered, with limited headroom.

    StatusMetricValueReadingMarket avg
    ✔
    Dividend yield
    3.15%
    1.85%
    ✔Dividend growth2.50%
    0.00%
    ✘Payout ratio (earnings)64.81%
    40.00%
    Payout ratio (cashflow)N/A65.00%
    ✔Worst year, last 5 years2.19%
    -2.00%

    The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

    • ✘Dividend growth has been slowing recently

    Management

    62 / 100

    Returns on capital are at or above the market.

    StatusMetricValueReadingMarket avg
    ✔Return on equity110.48%
    15.00%
    ✔Return on capital employed28.75%
    10.00%
    Return on assets13.47%
    —
    Free cashflow return on capitalN/A—
    ✘Return on capital, 5y change-15.62%
    0.00%
    ✔
    Share count, per year
    -1.56%
    0.00%
    ✘Share count, recent0.47%
    0.00%
    ✘Realized buyback return-23.13%
    0.00%
    ✔Goodwill erosion / equity0.04%
    2.00%
    Price volatility, 5 year24.70%
    —

    The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

    • ✘Shares were repurchased while the value score was only 14 out of 100
    • ✘Dividends were raised while earnings fell (dividend 7.07% per year, earnings -1.32% per year)

    Analysts

    not enough data
    StatusMetricValueReadingNeutral
    Analyst opinion scoreN/A50

    The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

    Financial History

    Annual figures across the full reporting history we hold.

    Market Peers

    HD

    SEC Filings

    Find yearly (10-K), quaterly (10-Q) and disclosure (8-K) report here, on the Securities and Exchange Commission's EDGAR database. If reading through reports isn't your cup of tea, don't worry. We've made it easy for you by summarizing all the important bits.

    See 35+ Years Annual Reports

    Other Information

    Company Name

    The Home Depot, Inc.

    Currency

    USD

    Beta

    0.955

    Vol Avg

    4027714

    Ceo

    Mr. Edward P. Decker

    Cik

    0000354950

    Cusip

    Exchange

    NYSE

    Full Time Employees

    470000

    Industry

    Home Improvement Retail

    Sector

    Consumer Cyclical

    Ipo Date

    Address

    2455 Paces Ferry Road

    City

    Atlanta

    State

    GA

    Country

    United States

    Zip

    30339

    Phone

    770 433 8211

    Analysis Last Updated

    26/09/2026, 10:16:55

    Financial data compiled from SEC EDGAR filings and Yahoo Finance.

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