Home Depot is the world's largest home improvement specialty retailer, operating 2,364 warehouse-format stores offering more than 30,000 products in store and 1 million products online in the US, Canada, and Mexico.
It is a $290B consumer company. Revenue shrank 16.0% over the last year, it keeps 9¢ of every dollar of sales as profit, and its net debt equals ~1.6 years of free cash flow. It trades at 20.4× earnings — around the middle of its own history.
- Website
- homedepot.com
- Location
- Atlanta, GA
- Employees
- 472 400
- Sector
- Consumer Cyclical
- Founded
- 1978
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong valuation, quality and moat; Growth lags behind.
Valuation90
- P/E vs own history33th pct · 20/25
- FCF yield12.8% · 25/25
- P/S1.7x · 25/25
- EV/EBITDA14.0x · 20/25
Growth11
- Revenue CAGR2.2% · 6/25
- Net income CAGR-3.7% · 0/25
- EPS CAGR ~5Y-18.8% · 0/25
- Fwd implied growth4.4% · 5/25
Profitability62
- ROIC14.6% · 12/25
- ROE102.7% · 25/25
- Net margin8.7% · 13/25
- Operating margin12.4% · 12/25
Health55
- Altman Z4.31 · 25/25
- Current ratio1.08 · 12/25
- Interest coverage9.1x · 18/25
- Net cash / debtD/A 56% · 0/25
Quality82
- Piotroski F4/9 · 10/25
- Beneish M-2.88 · 25/25
- FCF conversion89% · 22/25
- Margin stabilityσ 1.1% · 25/25
Moat81
- ROIC >12% years12/12 yrs · 25/25
- Median gross margin33.7% · 13/25
- FCF-positive years12/12 yrs · 25/25
- Worst-year net marginworst 8.5% · 18/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- FY2021FinancialBest year on record$42.6B net income
- 2020AcquisitionHome Depot bought back HD Supply for $8 billion
- FY2016FinancialProfitable every year on record12 consecutive profitable years in our data
- FY2016FinancialRevenue already above $100B$239B in first reported year
- FY2016FinancialPositive free cash flow every year since12-year streak
- 2007MilestoneThe Home Depot Supply rebranded under the new name HD Supply in January 2007
- 2006AcquisitionThe Home Depot acquired Hughes Supply, the largest home construction wholesaler in the United States for…
- 2005ProductHome Depot Direct launched its online home-furnishings store, 10 Crescent Lane, shortly followed…
- 2004MilestoneApex Supply and Maintenance Warehouse stores were rebranded in 2004 as "The Home Depot Supply"
- 2002AcquisitionThe Home Depot entered the Mexican market in 2002 with the acquisition of the home improvement chain Del Norte
- 2001AcquisitionYour Other Warehouse, a large plumbing distributor with a focus on special order fulfillment, was acquired by The…
- 2000Milestone100-store quartersfastest big-box expansion in retail history
- 1999AcquisitionAtlanta-based company Apex Supply was acquired by The Home Depot in 1999
- 1986ProductThe warehouse format100k sq ft DIY stores — hardware as a destination
- Sep 22, 1984IPOIPO on Nasdaqwent public with four stores
- Jun 29, 1978FoundedFounded in AtlantaBernie Marcus and Arthur Blank, fired from Handy Dan
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- Interest covered 9.1× by operating earnings
- Altman Z-Score 4.31 — low bankruptcy-risk zone
Watch-outs
- Revenue shrinking 16.0% year over year
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago-16.0% YoY
- Profitable — makes more than it spends$33.6B TTM
- Profit growing — earnings are higher than last year-5.2% YoY
- Generates cash — cash left after running and investing$37.2B TTM
- Debt under control — could handle its obligations~1.6y of cash flow to repay
- Established company — not a micro-cap — lower blow-up risk$290B market cap
- Not printing shares — share count not ballooning — you keep your slice-6.0% shares over ~5y
- Proven track record — years of profitability behind it12/12 profitable years
- Financially stable — balance sheet not near distressAltman Z 4.3 — safe
- Pays a dividend — returns cash to shareholdersyield 3.18%
- Valuation not extreme — price not wildly above earningsP/E 20.4
Peer comparisonHome Depot, Inc. vs 6 largest consumer cyclical peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| HD this company | $290.4B | 20.4 | -16.0% | 8.7% | Solid |
| AMZN Amazon.Com Inc | $2.8T | 20.9 | +15.8% | 17.4% | Mixed |
| TSLA Tesla, Inc. | $1.5T | 397.1 | +11.8% | 3.7% | Strong |
| NFLX NetFlix Inc | $292.8B | 21.4 | +16.0% | 28.2% | Solid |
| DIS The Walt Disney Company | $186.5B | 21.7 | +4.6% | 8.7% | Solid |
| MCD McDonald's Corporation | $166.9B | 18.9 | +6.3% | 31.7% | Strained |
| TJX TJX Companies, Inc. (The) | $153.0B | 25.2 | +7.7% | 9.7% | Mixed |
Head-to-head: HD vs AMZN · HD vs TSLA · HD vs NFLX
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2027. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/HD
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Deeper analysis of HD on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $291.04 · market cap $290B.