# Home Depot, Inc. (HD) — Stock CV

Home Depot, Inc. 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.

> 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.

## Identity

- **Ticker**: HD
- **Sector**: Consumer Cyclical
- **Industry**: Retail-Lumber & Other Building Materials Dealers
- **Headquarters**: ATLANTA, GA
- **Employees**: 472 400
- **Website**: https://www.homedepot.com
- **Market cap**: $290B
- **Last price**: $291.04
- **Financial profile**: Solid

## Vitals (TTM)

- **Revenue**: $386B
- **Net income**: $33.6B
- **Free cash flow**: $37.2B
- **Net debt**: $61.1B
- **P/E**: 20.4
- **Revenue growth (YoY)**: -16.0%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 90 |
| Growth | 11 |
| Profitability | 62 |
| Health | 55 |
| Quality | 82 |
| Moat | 81 |

## Qualifications (beginner checklist) — 9 of 11 passed

- [ ] Revenue growing — -16.0% YoY
- [x] Profitable — $33.6B TTM
- [ ] Profit growing — -5.2% YoY
- [x] Generates cash — $37.2B TTM
- [x] Debt under control — ~1.6y of cash flow to repay
- [x] Established company — $290B market cap
- [x] Not printing shares — -6.0% shares over ~5y
- [x] Proven track record — 12/12 profitable years
- [x] Financially stable — Altman Z 4.3 — safe
- [x] Pays a dividend — yield 3.18%
- [x] Valuation not extreme — P/E 20.4

## Experience (career milestones)

- **FY2021** — Best year on record: $42.6B net income
- **2020** — Home Depot bought back HD Supply for $8 billion
- **FY2016** — Profitable every year on record: 12 consecutive profitable years in our data
- **FY2016** — Revenue already above $100B: $239B in first reported year
- **FY2016** — Positive free cash flow every year since: 12-year streak
- **2007** — The Home Depot Supply rebranded under the new name HD Supply in January 2007
- **2006** — The Home Depot acquired Hughes Supply, the largest home construction wholesaler in the United States for…
- **2005** — Home Depot Direct launched its online home-furnishings store, 10 Crescent Lane, shortly followed…
- **2004** — Apex Supply and Maintenance Warehouse stores were rebranded in 2004 as "The Home Depot Supply"
- **2002** — The Home Depot entered the Mexican market in 2002 with the acquisition of the home improvement chain Del Norte
- **2001** — Your Other Warehouse, a large plumbing distributor with a focus on special order fulfillment, was acquired by The…
- **2000** — 100-store quarters: fastest big-box expansion in retail history
- **1999** — Atlanta-based company Apex Supply was acquired by The Home Depot in 1999
- **1986** — The warehouse format: 100k sq ft DIY stores — hardware as a destination
- **Sep 22, 1984** — IPO on Nasdaq: went public with four stores
- **Jun 29, 1978** — Founded in Atlanta: Bernie Marcus and Arthur Blank, fired from Handy Dan

## 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

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2023 | $388B | $39.9B | $47.2B |
| FY2024 | $396B | $38.7B | $44.2B |
| FY2025 | $416B | $37.2B | $33.8B |
| FY2026 | $423B | $37.1B | $37.9B |
| FY2027 | $131B | $11.3B | $14.9B |

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Source: https://stockcv.com/HD — derived from company filings; may be delayed or incomplete. Information, not investment advice.