HD — The Home Depot, Inc. $352.68

Generated 2026-06-30 21:49

Quality Scorecard Stable

C55/100
🟡 Pricing power (gross margin) 33% Gross margin 33% — moderate margins
Return on equity 128% ROE 128% — high returns on capital
Leverage (net debt / EBITDA) 2.5x Net debt / EBITDA 2.5x — low leverage
Interest coverage 9x EBIT covers interest 9x — comfortably covered
🟡 Earnings consistency (revenue) 1/3 down 1 revenue-down year(s) in 3 — one down year
Earnings growth (net income YoY) -4% Net income -4% YoY — earnings declining
Cash conversion (CFO/NI) 115% Operating cash ÷ net income 115% — earnings convert to cash
Operating margin trend eroding Operating margin eroding
Free cash flow margin 8% FCF margin 8% — thin / negative
🟡 Returns capital to shareholders yes dividend ~2.7%; shares +0.4%/yr
🟡 Buyback efficiency (net share-count Δ) +0.4%/yr Shares outstanding +0.4% YoY — roughly flat

Stable-stage checklist (proxy metrics from yfinance). 11 of 11 criteria scored. Not financial advice.

Buy-Now Score

52/100
Quality ×40%55
Trajectory ×30%60
Valuation ×30%42

Comparative rank: 40% Quality + 30% Trajectory + 30% Valuation — higher = better buy now. Not financial advice.

Valuation

$121.16$407.38
Price $352.68DCF $134.62 (-62%)Analyst $370.34 (+5%)MarketGist fair $323.20 (-8%)

DCF: 4% start growth → 2.5%, 9.4% discount (band $91.29–$204.84). Analyst: 32 analysts. MarketGist fair = 80% analyst + 20% DCF. Not financial advice.

Key Trends (6-yr)

GAAP EPS
▼ -4.6% YoY
Sales
▲ +3.2% YoY
Shares Outstanding
▲ +0.2% YoY

Company Overview

Basic Information

Company Name: The Home Depot, Inc.
Symbol: HD
Exchange: NYQ
Sector: Consumer Cyclical
Industry: Home Improvement Retail

Company Details

Country: United States
City: Atlanta
Employees: 470,000
Market Cap: $351.66B

Business Description

The Home Depot, Inc. operates as a home improvement retailer in the United States and internationally. It sells 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, water heaters, baths, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, windows, and window coverings. In addition, it provides tool and equipment rental services. The company serves consumers, such as do-it-yourself homeowners and do-it-for-me customers; and professional renovators/remodelers, general contractors, homebuilders, maintenance professionals, handymen, property managers, building service contractors and specialty tradespeople, such as electricians, landscapers, insulation installers, plumbers, painters, pool contractors, roofers, and wallboard and ceiling installers. It sells its products through websites and its mobile applications, including homedepot.com; homedepot.ca and homedepot.com.mx; blinds.com, justblinds.com, and americanblinds.com for custom window coverings; constructionresourcesusa.com or design-oriented surfaces, appliances, and architectural specialty products; thecompanystore.com, an online site for textiles and décor products; hdsupply.com for maintenance, repair, and operations products and related services; and srsdistribution.com, heritagelandscapesupplygroup.com, heritagepoolsupplygroup.com, and gms.com for roofing and building materials, landscape, and pool products; and The Home Depot stores. The Home Depot, Inc. was incorporated in 1978 and is headquartered in Atlanta, Georgia.

Key Metrics

Price & Valuation

Current Price
$352.68
Market Cap
$351.66B
P/E Ratio
25.07
Forward P/E
21.92
PEG Ratio
1.97
Price to Book
25.34

Profitability

Profit Margin: 8.41%
Operating Margin: 11.93%
Gross Margin: 33.13%
Return on Equity (ROE): 128.38%
Return on Assets (ROA): 12.52%
Revenue Growth: 4.80%

Financial Health

Current Ratio: 1.04
Quick Ratio: 0.23
Debt to Equity: 459.36
Total Debt: $63.73B
Total Cash: $1.60B
Beta: 0.97

Trading & Analyst Info

52-Week Range

52-Week High: $426.75
52-Week Low: $289.10
50-Day Average: $322.96
200-Day Average: $356.45

Analyst Recommendations

Recommendation: BUY
Target Mean Price: $370.34
Target High: $430.00
Target Low: $310.00

Price graph

Price vs Rates, Inflation & Volume (long-term)

Dotted = market-implied expectation (next ~12 mo), not a prediction.

Quarterly Verdict

🟡 55/100

Hold / watch

Quality grade C; 3 improving / 3 weakening metrics YoY.

➕ Return on equity: ROE 128% — high returns on capital
➕ Leverage (net debt / EBITDA): Net debt / EBITDA 2.5x — low leverage
➕ Interest coverage: EBIT covers interest 9x — comfortably covered
➖ Earnings growth (net income YoY): Net income -4% YoY — earnings declining
➕ Cash conversion (CFO/NI): Operating cash ÷ net income 115% — earnings convert to cash
➖ Operating margin trend: Operating margin eroding
➖ Free cash flow margin: FCF margin 8% — thin / negative
➕ Revenue +4.8% YoY
➖ Net income -4.2% YoY
➖ Operating margin -1.0 pts YoY
➕ Free cash flow +47.4% YoY
➕ Cash +16.9% YoY
➖ Debt +3.0% YoY

Heuristic from the Quality Scorecard + quarter-over-quarter trends. Not financial advice.

Financial Statements

Income Statement (Annual)

Item2026-01-312025-01-312024-01-312023-01-312022-01-31
Tax Effect Of Unusual Items$0.00$0.00$0.00$0.00N/A
Tax Rate For Calcs$0.24$0.24$0.24$0.24N/A
Normalized EBITDA$25.14B$25.49B$25.11B$27.07BN/A
Net Income From Continuing Operation Net Minority Interest$14.16B$14.81B$15.14B$17.11BN/A
Reconciled Depreciation$4.12B$3.76B$3.25B$2.98BN/A
Reconciled Cost Of Revenue$108.97B$105.48B$101.14B$104.11BN/A
EBITDA$25.14B$25.49B$25.11B$27.07BN/A
EBIT$21.01B$21.73B$21.87B$24.09BN/A
Net Interest Income$-2.29B$-2.12B$-1.76B$-1.56BN/A
Interest Expense$2.41B$2.32B$1.94B$1.62BN/A
Interest Income$124.00M$201.00M$178.00M$55.00MN/A
Normalized Income$14.16B$14.81B$15.14B$17.11BN/A
Net Income From Continuing And Discontinued Operation$14.16B$14.81B$15.14B$17.11BN/A
Total Expenses$143.79B$137.99B$130.98B$133.36BN/A
Total Operating Income As Reported$20.89B$21.53B$21.69B$24.04BN/A

Showing 15 of 40 rows

Balance Sheet (Annual)

Item2026-01-312025-01-312024-01-312023-01-312022-01-31
Treasury Shares Number$806.00M$806.00M$804.00M$778.00MN/A
Ordinary Shares Number$995.51M$994.00M$992.00M$1.02BN/A
Share Issued$1.80B$1.80B$1.80B$1.79BN/A
Net Debt$54.38B$51.72B$40.35B$40.44BN/A
Total Debt$65.35B$62.29B$52.24B$50.36BN/A
Tangible Book Value$-19.86B$-21.82B$-11.02B$-5.88BN/A
Invested Capital$68.58B$60.02B$45.16B$44.76BN/A
Working Capital$1.97B$3.02B$7.76B$9.36BN/A
Net Tangible Assets$-19.86B$-21.82B$-11.02B$-5.88BN/A
Capital Lease Obligations$9.58B$8.91B$8.13B$7.17BN/A
Common Stock Equity$12.81B$6.64B$1.04B$1.56BN/A
Total Capitalization$59.15B$55.12B$43.79B$43.52BN/A
Total Equity Gross Minority Interest$12.81B$6.64B$1.04B$1.56BN/A
Stockholders Equity$12.81B$6.64B$1.04B$1.56BN/A
Gains Losses Not Affecting Retained Earnings$-652.00M$-1.13B$-477.00M$-718.00MN/A

Showing 15 of 71 rows

Cash Flow Statement (Annual)

Item2026-01-312025-01-312024-01-312023-01-312022-01-31
Free Cash Flow$12.65B$16.32B$17.95B$11.50BN/A
Repurchase Of Capital Stock$0.00$-649.00M$-7.95B$-6.70BN/A
Repayment Of Debt$-5.04B$-1.54B$-1.27B$-2.49BN/A
Issuance Of Debt$2.16B$10.01B$2.00B$6.94BN/A
Issuance Of Capital Stock$314.00M$395.00M$323.00M$264.00MN/A
Capital Expenditure$-3.68B$-3.48B$-3.23B$-3.12BN/A
Interest Paid Supplemental Data$2.40B$2.20B$1.81B$1.45BN/A
Income Tax Paid Supplemental Data$4.85B$3.65B$5.02B$5.43BN/A
End Cash Position$1.39B$1.66B$3.76B$2.76BN/A
Beginning Cash Position$1.66B$3.76B$2.76B$2.34BN/A
Effect Of Exchange Rate Changes$99.00M$-186.00M$3.00M$-68.00MN/A
Changes In Cash$-369.00M$-1.92B$1.00B$482.00MN/A
Financing Cash Flow$-7.71B$-694.00M$-15.44B$-10.99BN/A
Cash Flow From Continuing Financing Activities$-7.71B$-694.00M$-15.44B$-10.99BN/A
Net Other Financing Charges$-145.00M$-301.00M$-156.00M$-188.00MN/A

Showing 15 of 53 rows

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