A Business at a Glance
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Item 1. Business. The Home Depot, Inc. is the world’s largest home improvement retailer based on net sales for fiscal 2024. We offer our customers a wide assortment of building materials, home improvement products, lawn and garden products, décor products, and facilities MRO products, in stores and online. We also provide a number of services, including home improvement installation services, and tool and equipment rental. As of the end of fiscal 2024, we operated 2,347 stores located throughout the U.S. (including the Commonwealth of Puerto Rico and the territories of the U.S. Virgin Islands and Guam), Canada, and Mexico. The Home Depot stores average approximately 104,000 square feet of enclosed space, with approximately 24,000 additional square feet of outside garden area. We also maintain a network of distribution and fulfillment centers, as well as a number of e-commerce websites in the U.S., Canada and Mexico. For disclosure purposes, the geographic operating segments of the U.S.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 166.2B | 159.5B | 152.7B | 157.4B | 151.2B | 132.1B |
| Net Income | 14.6B | 14.8B | 15.1B | 17.1B | 16.4B | 12.9B |
| EPS | $14.66 | $14.91 | $15.11 | $16.69 | $15.53 | $11.94 |
| Free Cash Flow | 13.9B | 16.3B | 17.9B | 11.5B | 14.0B | 16.4B |
| ROIC | 25.3% | 30.2% | 30.0% | 38.4% | 43.7% | 43.3% |
| Gross Margin | 33.4% | 33.4% | 33.4% | 33.5% | 33.6% | 34.0% |
| Debt/Equity | 4.62 | 9.38 | 8.40 | 33.03 | -27.28 | 13.48 |
| Dividends/Share | $9.14 | $8.99 | $9.00 | $8.36 | $7.60 | $6.60 |
| Operating Income | 21.5B | 21.5B | 21.7B | 24.0B | 23.0B | 18.3B |
| Operating Margin | 13.0% | 13.5% | 14.2% | 15.3% | 15.2% | 13.8% |
| ROE | 120.4% | 223.0% | 228.1% | 1095.1% | - | 390.0% |
| Shares Outstanding | 996M | 993M | 1,002M | 1,025M | 1,058M | 1,078M |
HOME DEPOT, INC. passes 6 of 9 quality checks, suggesting mixed fundamentals.
HOME DEPOT, INC. trades at 23.3x trailing earnings, compared to its 15-year median P/E of 18.4x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 24.4x vs a median of 18.2x. The company's 5-year average ROIC is 37.1% with a gross margin of 33.6%. Total shareholder yield (dividends) is 2.7%. At current prices, the estimated annualized return to fair value is +8.4%.
HOME DEPOT, INC. (HD) has a current P/E ratio of 23.3, compared to its historical median P/E of 18.4. The stock is currently considered Expensive based on its historical valuation range.
HOME DEPOT, INC. (HD) has a 5-year average return on invested capital (ROIC) of 37.1%. This indicates strong capital allocation and a potential competitive advantage.
HOME DEPOT, INC. (HD) has a market capitalization of $339.6B. It is classified as a mega-cap stock.
Yes, HOME DEPOT, INC. (HD) pays a dividend with a trailing twelve-month yield of 2.68%.
Based on historical P/E analysis, HOME DEPOT, INC. (HD) appears expensive. The current P/E of 23.3 is 27% above its historical median of 18.4. The estimated fair value CAGR (P/E method) is 8.6%.
HOME DEPOT, INC. (HD) operates in the Retail-Lumber & Other Building Materials Dealers industry, within the Consumer Cyclical sector.
HOME DEPOT, INC. (HD) reported annual revenue of $159.5 billion in its most recent fiscal year, based on SEC EDGAR filings.
HOME DEPOT, INC. (HD) has a net profit margin of 9.3%. This is a modest margin.
HOME DEPOT, INC. (HD) generated $16.3 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
HOME DEPOT, INC. (HD) has a debt-to-equity ratio of 9.38. This indicates higher leverage, which may increase financial risk.
HOME DEPOT, INC. (HD) reported earnings per share (EPS) of $14.91 in its most recent fiscal year.
HOME DEPOT, INC. (HD) has a return on equity (ROE) of 223.0%. This indicates the company generates strong returns for shareholders.
HOME DEPOT, INC. (HD) has a 5-year average gross margin of 33.6%. This indicates decent pricing power.
The Ledger Terminal provides 18 years of financial data for HOME DEPOT, INC. (HD), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
HOME DEPOT, INC. (HD) has a book value per share of $6.69, based on its most recent annual SEC filing.