Home Depot, Inc. (HD)
Consumer Discretionary · Home Improvement Retail · US stock · S&P 500 component
$327.73
▲ +13.59 (4.33%)
Fair valueFair
$283 −13.8% to fair value
$141fair band $241–$343$424
Day's range
$313.56 – $327.92
52-week range
$277.15 – $397.63
About Home Depot, Inc.
Home Depot operates large home improvement stores and an online store in North America. It carries tools, building materials, appliances, flooring, paint, lumber and garden supplies, aimed at do-it-yourself homeowners and at professional contractors, remodelers and tradespeople. Services such as installation and tool rental are also offered, and the company supplies professional customers through specialist distribution businesses.
Home Depot earns its revenue from product sales in its stores and online, and from services such as installation. Revenue for the last twelve months was $169.2 billion, and it has grown at 1.5% a year across the last three years. The operating margin is 12.4%, and the business earns a profit of 24% on the capital invested in it. It has net debt of 2.1 times EBITDA. The company pays a dividend with a yield of 2.8%. On the site's X-Ray Score it receives 40 out of 100.
Price chart
52-wk range $277.15 – $397.63Volume 5,465,728Daily, split-adjusted
Vitals
Market cap$326.4B
52-week range$277.15 – $397.63
Volume (last day)5,465,728
P/E (TTM)22.9
EBIT / EV yield5.6%
Free-cash-flow yield4.6%
Dividend yield2.8%
Revenue (TTM)$169.2B
Net income (TTM)$14.2B
Operating margin12.4%
Return on capital23.7%
Debt incl. leases$52.9B
Cash & securities$2.1B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$283middle half of models $231 – $330
Fair
−13.8% to fair value
Average of the 14 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $328
Undervalued < $241Fair $241 – $343Overvalued > $343
P/E multiple
$329
P/B multiple · not used
$1,512
P/S multiple
$384
EV/EBITDA multiple
$338
EV/EBIT multiple
$331
EV/revenue multiple
$375
10-year DCF, EBITDA exit
$281
5-year DCF, EBITDA exit
$307
10-year DCF, revenue exit
$283
5-year DCF, revenue exit
$312
10-year DCF, growth exit
$174
5-year DCF, growth exit
$166
Dividend discount, stable
$182
Dividend discount, multi-stage
$215
Earnings power value
$280
Growth the price implies
16.2%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Weak business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Consumer Discretionary peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Weak
36/100
Expensive against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield5.6%
Free-cash-flow yield4.6%
Fair value vs price0.9×
Growth
Weak
30/100
Growing slower than most of its sector.
See the numbers →
Revenue growth (3y)1.5%
EPS growth (3y)-5.2%
Growth consistency80%
Profitability
Weak
48/100
Earns lower returns on its capital than most peers.
See the numbers →
Return on invested capital23.7%
Operating margin12.4%
Gross profitability51.4%
Financial health
Weak
40/100
Balance sheet is more stretched than most peers.
See the numbers →
Piotroski F-Score4 / 9
Net debt / EBITDA2.1×
Interest cover8.7×
Dividends
Fair
53/100
Dividend is typical for its sector.
See the numbers →
Dividend yield2.8%
Dividends vs free cash flow61%
Dividend growth5.5%
Quarterly results: last 6 quarters
+9.4%
May '25
+4.9%
Aug '25
+2.8%
Nov '25
-3.8%
Feb '26
+4.8%
May '26
+5.7%
Aug '26
Revenue against the same quarter a year earlier. Latest quarter revenue $47.9B, diluted EPS $4.79.
Compare with peers
LOW Lowes Companies Inc48Other Home Improvement Retail companies by X-Ray Score.
SWOT analysis: Home Depot, Inc.
Strengthsinside the company
- Return on invested capital is 23.7%, against a median of 24.9% for sector peers.
Weaknessesinside the company
- Earnings per share have declined 5.2% a year over three years.
Opportunitiesvaluation and setting
- No specific opportunity is visible in our valuation, sector or growth data.
Threatsvaluation and setting
- No specific threat is flagged by our checks; general market and interest-rate risk still applies.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare HD with peers and sector
Medians of 46 Consumer Discretionary peers and of 46 Consumer Discretionary stocks in our universe.
Largest peers (X-Ray Score): AMZN 42, TSLA 28, MCD 53, TJX 55, BKNG 70, SBUX 31.
| Metric | HD | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 40 | 51 | 51 |
| Valuation | 36 | 49 | 49 |
| Growth | 30 | 53 | 53 |
| Profitability | 48 | 52 | 52 |
| Financial health | 39 | 50 | 50 |
| Dividends | 53 | 51 | 51 |
Sector leaders: highest X-Ray Score in Consumer Discretionary
HD ranks #38 of 47 in Consumer Discretionary by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for HD
Each factor is rated by where HD stands among the 47 Consumer Discretionary stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 1 Good · 16 Average · 6 Bad of 23
Growth: 0 · 1 · 2
Profitability: 1 · 4 · 0
Financial strength: 0 · 3 · 1
Valuation: 0 · 4 · 1
Cash flow: 0 · 2 · 2
Efficiency: 0 · 2 · 0
| Factor | HD | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +1.5% | Bad beats 17% | +6.5% | – | – |
| Revenue growth, last year | +3.2% | Average beats 34% | +4.9% | +4.1% | ≈ In line |
| EPS growth, 3 years a year | −5.2% | Bad beats 32% | +4.0% | – | – |
| Profitability | |||||
| Gross margin | 33.2% | Average beats 34% | 42.5% | 33.4% | ≈ In line |
| Operating margin | 12.4% | Average beats 39% | 14.9% | 14.2% | ▼ Worse |
| Net margin | 8.4% | Average beats 34% | 11.4% | 9.9% | ▼ Worse |
| Return on invested capital | 23.7% | Average beats 44% | 24.6% | – | – |
| Return on equity | 85.6% | Good beats 88% | 35.3% | 659.2% | ▼ Worse |
| Financial strength | |||||
| Net debt / EBITDA | 2.1x | Average beats 46% | 1.8x | 1.6x | ▼ Worse |
| Interest cover | 8.7x | Average beats 35% | 25.3x | 11.2x | ▼ Worse |
| Current ratio | 1.08 | Average beats 41% | 1.10 | 1.11 | ≈ In line |
| Piotroski F-score | 4 / 9 | Bad beats 9% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 22.9x | Average beats 41% | 21.1x | 23.6x | ≈ In line |
| Price / book | 19.6x | Bad beats 13% | 7.2x | 134.7x | ▲ Better |
| Price / sales | 1.9x | Average beats 56% | 2.1x | 2.3x | ▲ Better |
| EV / EBITDA | 15.4x | Average beats 43% | 15.0x | 16.4x | ≈ In line |
| Free cash flow yield | 4.6% | Average beats 56% | 4.3% | 3.6% | ▲ Better |
| Cash flow | |||||
| Free cash flow margin | 8.9% | Average beats 38% | 10.8% | 9.3% | ≈ In line |
| Cash from operations / net income | 1.32 | Average beats 40% | 1.37 | 1.15 | ▲ Better |
| Free cash flow growth, 3 years a year | +3.2% | Bad beats 30% | +12.1% | – | – |
| Accruals (lower is better) | −4.2% | Bad beats 31% | −5.3% | – | – |
| Efficiency | |||||
| Inventory turnover | 4.2x | Average beats 50% | 4.2x | 4.5x | ≈ In line |
| Days sales outstanding | 15 days | Average beats 45% | 14 days | 8 days | ▼ Worse |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 1 Good · ● 9 Average · ● 6 BadCash quality
Earnings backed by cashBad
Free-cash-flow yieldAverage
Risk models
Altman Z''Good
Piotroski F-ScoreBad
Growth
EPS growth (3y)Bad
Free-cash-flow growth (3y)Bad
Revenue growth (3y)Bad
Growth consistencyAverage
Balance sheet
Current ratioAverage
Net debt / EBITDAAverage
Interest coverAverage
Valuation
Fair value vs priceBad
EBIT / EV yieldAverage
Profitability
Return on invested capitalAverage
Operating marginAverage
Gross profitabilityAverage
Each check is graded against the company's sector, not a fixed number. Checklist score 38/100.
Financials
| FY22 | FY23 | FY24 | FY25 | FY26 | |
|---|---|---|---|---|---|
| Revenue | $151.2B | $157.4B | $152.7B | $159.5B | $164.7B |
| Operating income | $23.0B | $24.0B | $21.7B | $21.5B | $20.9B |
| Net income | $16.4B | $17.1B | $15.1B | $14.8B | $14.2B |
| Operating cash flow | $16.6B | $14.6B | $21.2B | $19.8B | $16.3B |
| Operating margin | 15.2% | 15.3% | 14.2% | 13.5% | 12.7% |
| Free cash flow | $14.0B | $11.5B | $17.9B | $16.3B | $12.6B |
| Diluted EPS | $15.53 | $16.69 | $15.11 | $14.91 | $14.23 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bullish
10 bullish · 0 neutral · 6 bearish
Weekly
Bearish
4 bullish · 1 neutral · 7 bearish
Monthly
Strongly bearish
0 bullish · 1 neutral · 7 bearish
Moving averages (daily)
| SMA 10 | 305.6 | Bullish |
| EMA 10 | 308.7 | Bullish |
| SMA 20 | 296.3 | Bullish |
| EMA 20 | 303.8 | Bullish |
| SMA 50 | 309.7 | Bullish |
| EMA 50 | 308.5 | Bullish |
| SMA 100 | 321.9 | Bullish |
| EMA 100 | 317.0 | Bullish |
| SMA 200 | 331.8 | Bearish |
| EMA 200 | 328.0 | Bearish |
Oscillators (daily)
| RSI (14) | 71.60 | Bearish |
| MACD (12, 26) | 3.11 | Bullish |
| Momentum (12) | 14.32 | Bullish |
| Stochastic %K (14) | 99.61 | Bearish |
| Williams %R (14) | -0.39 | Bearish |
| CCI (20) | 176.7 | Bearish |
Pivot points (classic, last session)
S3 303.9 | S2 308.7 | S1 318.2 | Pivot 323.1 | R1 332.6 | R2 337.4 | R3 346.9 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
9.29 USD
Yield on today's price
2.83%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 2.3300 | |
| 2.3300 | |
| 2.3300 | |
| 2.3000 | |
| 2.3000 | |
| 2.3000 | |
| 2.3000 | |
| 2.2500 | |
| 2.2500 | |
| 2.2500 | |
| 2.2500 | |
| 2.0900 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold HD
| ETF | Share of the fund |
|---|---|
| XLY Consumer Discretionary Select Sector S... | 5.83% |
| FDIS Fidelity MSCI Consumer Discretionary I... | 4.92% |
| VCR Vanguard Consumer Discretionary | 4.57% |
| HDV iShares Core High Dividend | 4.45% |
| ITB iShares U.S. Home Construction | 4.42% |
| NAIL Direxion Daily Homebuilders & Supplies... | 3.74% |
| SCHD Schwab U.S. Dividend Equity | 3.36% |
| XHB SPDR S&P Homebuilders | 3.28% |
The eight funds with the largest weight in HD among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
HD stock splits
HD has split its stock 7 times since 1990. The latest was a 3-for-2 split on 31 Dec 1999.
Full HD stock split history →HD SEC filings
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Director or officer change
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Director or officer change; Regulation FD disclosure
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Shareholder vote results
8-KSEC EDGAR
Results of operations
DEF 14ASEC EDGAR
Proxy statement
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.