A Business at a Glance
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HOME DEPOT, INC.
HD
$331.2B
Mkt Cap
$332.98
+2.55%
HOME DEPOT, INC. (HD) has a current P/E ratio of 22.7, 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 40.1%. This indicates strong capital allocation and a potential competitive advantage.
HOME DEPOT, INC. (HD) has a market capitalization of $331.5B. It is classified as a mega-cap stock.
Yes, HOME DEPOT, INC. (HD) pays a dividend with a trailing twelve-month yield of 2.74%.
Based on historical P/E analysis, HOME DEPOT, INC. (HD) appears expensive. The current P/E of 22.7 is 24% above its historical median of 18.4. The estimated fair value CAGR (P/E method) is 7.6%.
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 $164.7 billion in its most recent fiscal year, based on SEC EDGAR filings.
The Home Depot is the world's largest home improvement retailer, operating 2,347 stores across the U.S., Canada, and Mexico, each averaging approximately 104,000 square feet of enclosed space plus outdoor garden area, and serving two primary customer groups: DIY consumers and professional contractors ("Pros"). The company generates revenue through the sale of approximately 30,000 to 40,000 items per store across 16 merchandising departments—including appliances, building materials, flooring, hardware, lumber, paint, and plumbing—complemented by an extensive e-commerce platform offering significantly broader assortment, as well as installation services, tool and equipment rental, and MRO products through its HD Supply subsidiary. The business model is asset-intensive and geographically diversified, with a global sourcing program spanning the U.S., Mexico, Canada, China, India, Vietnam, Taiwan, and Europe to procure both national brands and proprietary products; the company maintains a network of distribution and fulfillment centers supporting omnichannel fulfillment. In fiscal 2024, Home Depot acquired SRS Distribution, a specialty trade distributor with over 780 branch locations serving professional roofers, landscapers, and pool contractors across roofing, landscape, and pool product lines, and in 2025 acquired GMS, a leading distributor of specialty building products including drywall and framing materials. The company's competitive moat derives from its recognized brand, scale, merchandising expertise, proprietary product portfolio (including HDX, Husky, Hampton Bay, and other brands), extensive patent and trademark protections, omnichannel capabilities, and Pro-focused ecosystem including trade credit programs, dedicated sales force, and customized fulfillment options.
【Resilient demand amid housing headwinds】 Management expects underlying consumer demand to remain relatively stable despite persistent housing affordability pressures and elevated interest rates, with the company positioned to continue gaining market share through its competitive advantages and strategic investments in customer experience. The company anticipates modest improvement in comparable sales as the year progresses, reflecting easier comparisons to 2025 storm activity, though near-term demand for larger remodeling projects remains constrained by financing challenges. Capital allocation priorities remain focused on reinvesting in the business to drive growth faster than the market, maintaining dividend payments, and returning excess cash through share repurchases once the company returns to an excess cash position expected in the first half of 2027. Management is investing in differentiated capabilities for Pros including enhanced fulfillment options, trade credit offerings, showroom space, and order management systems, while continuing to optimize the interconnected digital and physical shopping experience for all customer segments.
| Metric | Target | Period |
|---|---|---|
| Comparable sales growth | flat to 2% | FY2026 |
| Total sales growth | approximately 2.5% to 4.5% | FY2026 |
| SRS organic sales growth | mid-single-digit % | FY2026 |
| New store openings | approximately 15 new stores | FY2026 |
| New SRS locations | 40 to 50 | FY2026 |
| Gross margin | approximately 33.1% | FY2026 |
| Operating margin | approximately 12.4%-12.6% | FY2026 |
| Adjusted operating margin | approximately 12.8%-13% | FY2026 |
| Effective tax rate | approximately 24.3% | FY2026 |
| Net interest expense | approximately $2.3 billion | FY2026 |
| Diluted earnings per share |
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2027 Earnings Call, Q3 FY2027 Earnings Call, Q2 FY2027 Earnings Call, Q1 FY2027 Earnings Call
| Metric | TTM | FY2026 | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|---|
| Revenue | 166.2B | 164.7B | 159.5B | 152.7B | 157.4B | 151.2B |
| Net Income | 14.6B | 14.2B | 14.8B | 15.1B | 17.1B | 16.4B |
| EPS | $14.67 | $14.23 | $14.91 | $15.11 | $16.69 | $15.53 |
| Free Cash Flow | 13.9B | 12.6B | 16.3B | 17.9B | 11.5B | 14.0B |
| ROIC | 25.3% | 25.1% | 32.6% | 40.8% | 49.1% | 52.8% |
| Gross Margin | 33.4% | 33.3% | 33.4% | 33.4% | 33.5% | 33.6% |
| Debt/Equity | 4.62 | 4.59 | 8.47 | 41.68 | 27.13 | -23.52 |
| Dividends/Share | $9.14 | $9.20 | $9.00 | $8.36 | $7.60 | $6.60 |
| Operating Income | 21.5B | 20.9B | 21.5B | 21.7B | 24.0B | 23.0B |
| Operating Margin | 13.0% | 12.7% | 13.5% | 14.2% | 15.3% | 15.2% |
| ROE | 120.4% | 145.5% | 385.4% | 1450.5% | 1095.1% | - |
| Shares Outstanding | 996M | 995M | 993M | 1,002M | 1,025M | 1,058M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 83.2B | 88.5B | 94.6B | 100.9B | 108.2B | 110.2B | 132.1B | 151.2B | 157.4B | 152.7B | 159.5B | 164.7B | 166.2B |
| Gross Margin | 34.1% | 34.2% | 34.2% | 34.0% | 34.3% | 34.1% | 34.0% | 33.6% | 33.5% | 33.4% | 33.4% | 33.3% | 33.4% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 16.3B | 16.8B | 17.1B | 17.9B | 19.5B | 19.7B | 24.4B | 25.4B | 26.3B | 26.6B | 28.7B | 30.7B | 30.7B |
| EBIT | 10.5B | 11.8B | 13.4B | 14.7B | 15.5B | 15.8B | 18.3B | 23.0B | 24.0B | 21.7B | 21.5B | 20.9B | 21.5B |
| Op. Margin | 12.6% | 13.3% | 14.2% | 14.5% | 14.4% | 14.4% | 13.8% | 15.2% | 15.3% | 14.2% | 13.5% | 12.7% | 13.0% |
| Net Income | 6.3B | 7.0B | 8.0B | 8.6B | 11.1B | 11.2B | 12.9B | 16.4B | 17.1B | 15.1B | 14.8B | 14.2B | 14.6B |
| Net Margin | 7.6% | 7.9% | 8.4% | 8.6% | 10.3% | 10.2% | 9.7% | 10.9% | 10.9% | 9.9% | 9.3% | 8.6% | 8.8% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 25.6% | 28.8% | 32.2% | 35.4% | 47.0% | 47.0% | 48.8% | 52.8% | 49.1% | 40.8% | 32.6% | 25.1% | 25.3% |
| ROE | 58.1% | 89.6% | 149.4% | 298.3% | N/A | -450.2% | 390.0% | N/A | 1095.1% | 1450.5% | 385.4% | 145.5% | 120.4% |
| ROA | 15.8% | 17.1% | 18.7% | 19.7% | 25.1% | 23.6% | 21.1% | 23.1% | 23.1% | 19.8% | 17.2% | 14.1% | 13.7% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 8.2B | 9.4B | 9.8B | 12.0B | 13.2B | 13.7B | 18.8B | 16.6B | 14.6B | 21.2B | 19.8B | 16.3B | 17.6B |
| Free Cash Flow | 6.8B | 7.9B | 8.2B | 10.1B | 10.7B | 11.0B | 16.4B | 14.0B | 11.5B | 17.9B | 16.3B | 12.6B | 13.9B |
| Owner Earnings | 6.2B | 7.3B | 7.5B | 9.7B | 10.7B | 11.1B | 16.0B | 13.3B | 11.5B | 17.7B | 16.0B | 12.3B | 13.7B |
| CapEx | 1.4B | 1.5B | 1.6B | 1.9B | 2.4B | 2.7B | 2.5B | 2.6B | 3.1B | 3.2B | 3.5B | 3.7B | 3.7B |
| Maint. CapEx | 1.8B | 1.9B | 2.0B | 2.1B | 2.2B | 2.3B | 2.5B | 2.9B | 2.8B | 3.1B | 3.3B | 3.5B | 3.5B |
| Growth CapEx | 0 | 0 | 0 | 0 | 290M | 382M | 0 | 0 | 323M | 165M | 149M | 165M | 252M |
| D&A | 1.8B | 1.9B | 2.0B | 2.1B | 2.2B | 2.3B | 2.5B | 2.9B | 2.8B | 3.1B | 3.3B | 3.5B | 3.5B |
| CapEx/OCF | 17.5% | 16.0% | 16.6% | 15.8% | 18.7% | 19.6% | 13.1% | 15.5% | 21.3% | 15.2% | 17.6% | N/A | 21.1% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 2.5B | 3.0B | 3.4B | 4.2B | 4.7B | 6.0B | 6.5B | 7.0B | 7.8B | 8.4B | 8.9B | 9.2B | 9.1B |
| Dividend Yield | 2.7% | 2.5% | 2.6% | 2.7% | 2.6% | 2.9% | 2.7% | 2.2% | 2.7% | 2.8% | 2.5% | N/A | 2.7% |
| Share Buybacks | 7.0B | 7.0B | 6.9B | 8.0B | 10.0B | 7.0B | 791M | 14.8B | 6.7B | 8.0B | 649M | 0 | 0 |
| Buyback Yield | 5.9% | 5.5% | 4.8% | 4.5% | 5.6% | 3.4% | 0.3% | 4.9% | 2.4% | 2.2% | 0.2% | 0.0% | 0.0% |
| Stock-Based Comp | 225M | 244M | 267M | 273M | 282M | 251M | 310M | 399M | 366M | 380M | 442M | 522M | 522M |
| Debt Repayment | 39M | 39M | 3.0B | 543M | 1.2B | 1.1B | 2.9B | 1.5B | 2.5B | 1.3B | 1.5B | 5.0B | 5.0B |
| Balance Sheet | |||||||||||||
| Net Debt | 15.0B | 19.0B | 21.1B | 23.4B | 27.4B | 30.2B | 28.3B | 37.5B | 39.6B | 39.8B | 54.6B | 57.4B | 52.6B |
| Cash & Equiv. | 2.2B | 2.2B | 2.5B | 3.6B | 1.8B | 2.1B | 7.9B | 2.3B | 2.8B | 3.8B | 1.7B | 1.4B | 3.4B |
| Long-Term Debt | 16.9B | 20.8B | 22.3B | 24.3B | 26.8B | 29.5B | 34.8B | 36.4B | 41.1B | 42.1B | 51.4B | 49.4B | 46.3B |
| Debt/Equity | 1.84 | 3.36 | 5.45 | 18.59 | -15.55 | -10.37 | 10.96 | -23.52 | 27.13 | 41.68 | 8.47 | 4.59 | 4.62 |
| Interest Coverage | 12.6 | 12.8 | 13.8 | 13.9 | 14.8 | 13.2 | 13.6 | 17.1 | 14.9 | 11.2 | 9.3 | 8.7 | 85.1 |
| Equity | 9.3B | 6.3B | 4.3B | 1.5B | -1.9B | -3.1B | 3.3B | -1.7B | 1.6B | 1.0B | 6.6B | 12.8B | 12.1B |
| Total Assets | 39.9B | 42.0B | 43.0B | 44.5B | 44.0B | 51.2B | 70.6B | 71.9B | 76.4B | 76.5B | 96.1B | 105.1B | 106.3B |
| Total Liabilities | 30.6B | 35.7B | 38.6B | 43.1B | 45.9B | 54.4B | 67.3B | 73.6B | 74.9B | 75.5B | 89.5B | 92.3B | 94.2B |
| Intangibles | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 3.5B | 3.3B | 3.6B | 9.0B | 10.3B | 10.4B |
| Retained Earnings | 27.0B | 31.0B | 35.5B | 39.9B | 46.4B | 51.7B | 58.1B | 67.6B | 76.9B | 83.7B | 89.5B | 94.5B | 94.3B |
| Working Capital | 4.0B | 4.0B | 3.6B | 2.7B | 1.8B | 1.4B | 5.3B | 362M | 9.4B | 7.8B | 3.0B | 2.0B | 1.7B |
| Current Assets | 15.3B | 16.5B | 17.7B | 18.9B | 18.5B | 19.8B | 28.5B | 29.1B | 32.5B | 29.8B | 31.7B | 34.4B | 36.1B |
| Current Liabilities | 11.3B | 12.5B | 14.1B | 16.2B | 16.7B | 18.4B | 23.2B | 28.7B | 23.1B | 22.0B | 28.7B | 32.4B | 34.4B |
| Per Share Data | |||||||||||||
| EPS | 4.71 | 5.46 | 6.45 | 7.29 | 9.73 | 10.25 | 11.94 | 15.53 | 16.69 | 15.11 | 14.91 | 14.23 | 14.67 |
| Owner EPS | 4.63 | 5.66 | 6.11 | 8.19 | 9.39 | 10.16 | 14.86 | 12.58 | 11.18 | 17.69 | 16.14 | 12.35 | 13.72 |
| Book Value | 6.92 | 4.92 | 3.51 | 1.23 | -1.64 | -2.84 | 3.06 | -1.60 | 1.52 | 1.04 | 6.69 | 12.88 | 12.17 |
| Cash Flow/Share | 6.12 | 7.30 | 7.93 | 10.16 | 11.52 | 12.48 | 17.48 | 15.66 | 14.26 | 21.13 | 19.95 | 16.41 | 18.13 |
| Dividends/Share | 1.88 | 2.36 | 2.76 | 3.56 | 4.12 | 5.44 | 6.00 | 6.60 | 7.60 | 8.36 | 9.00 | 9.20 | 9.14 |
| Shares Out. | 1.3B | 1.3B | 1.2B | 1.2B | 1.1B | 1.1B | 1.1B | 1.1B | 1.0B | 1.0B | 993.0M | 994.8M | 995.5M |
| Valuation | |||||||||||||
| P/E Ratio | 18.8 | 18.2 | 18.1 | 20.6 | 16.0 | 18.4 | 19.2 | 18.4 | 16.5 | 23.8 | 26.0 | N/A | 22.7 |
| P/FCF | 17.6 | 16.2 | 17.6 | 17.5 | 16.6 | 18.8 | 15.0 | 21.6 | 24.5 | 20.1 | 23.5 | N/A | 23.8 |
| EV/EBIT | 12.7 | 12.3 | 12.1 | 13.5 | 13.1 | 14.8 | 14.7 | 14.6 | 13.3 | 18.3 | 20.2 | N/A | 17.8 |
| Price/Book | 12.8 | 20.2 | 33.2 | 122.2 | N/A | N/A | 74.7 | N/A | 180.3 | 345.2 | 57.9 | N/A | 27.4 |
| Price/Sales | 1.1 | 1.3 | 1.4 | 1.6 | 1.6 | 1.8 | 1.8 | 2.1 | 1.8 | 1.9 | 2.3 | N/A | 2.0 |
| FCF Yield | 5.7% | 6.2% | 5.7% | 5.7% | 6.0% | 5.3% | 6.6% | 4.6% | 4.1% | 5.0% | 4.2% | N/A | 4.2% |
| Market Cap | 119.4B | 127.7B | 143.9B | 177.7B | 178.2B | 206.7B | 246.5B | 302.1B | 281.6B | 360.4B | 384.3B | 0 | 331.5B |
| Avg. Price | 68.92 | 92.79 | 105.67 | 133.82 | 156.19 | 184.30 | 224.15 | 304.99 | 278.49 | 296.84 | 364.96 | 0.00 | 332.98 |
| Year-End Price | 88.65 | 99.50 | 116.63 | 150.08 | 155.89 | 188.42 | 228.72 | 285.46 | 274.76 | 359.62 | 386.95 | 0.00 | 332.98 |
HOME DEPOT, INC. passes 4 of 9 quality checks, suggesting mixed fundamentals.
HOME DEPOT, INC. trades at 22.7x 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 23.8x vs a median of 18.8x. The company's 5-year average ROIC is 40.1% with a gross margin of 33.5%. Total shareholder yield (dividends) is 2.7%. At current prices, the estimated annualized return to fair value is +7.5%.
HOME DEPOT, INC. (HD) has a net profit margin of 8.6%. This is a modest margin.
HOME DEPOT, INC. (HD) generated $12.6 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 4.59. This indicates higher leverage, which may increase financial risk.
HOME DEPOT, INC. (HD) reported earnings per share (EPS) of $14.23 in its most recent fiscal year.
HOME DEPOT, INC. (HD) has a return on equity (ROE) of 145.5%. This indicates the company generates strong returns for shareholders.
HOME DEPOT, INC. (HD) has a 5-year average gross margin of 33.5%. This indicates decent pricing power.
The Ledger Terminal provides 19 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 $12.88, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects underlying consumer demand to remain relatively stable despite persistent housing affordability pressures and elevated interest rates, with the company positioned to continue gaining market share through its competitive advantages and strategic investments in customer experience. The company anticipates modest improvement in comparable sales as the year progresses, reflecting easier comparisons to 2025 storm activity, though near-term demand for larger remodeling projects remains constrained by financing challenges. Capital allocation priorities remain focused on reinvesting in the business to drive growth faster than the market, maintaining dividend payments, and returning excess cash through share repurchases once the company returns to an excess cash position expected in the first half of 2027. Management is investing in differentiated capabilities for Pros including enhanced fulfillment options, trade credit offerings, showroom space, and order management systems, while continuing to optimize the interconnected digital and physical shopping experience for all customer segments.
Based on recent SEC filings and earnings calls, HOME DEPOT, INC. (HD) has provided the following forward guidance: Comparable sales growth: flat to 2% (FY2026); Total sales growth: approximately 2.5% to 4.5% (FY2026); SRS organic sales growth: mid-single-digit % (FY2026); New store openings: approximately 15 new stores (FY2026); New SRS locations: 40 to 50 (FY2026), plus 7 additional metrics.
| approximately flat to 4% increase |
| FY2026 |
| Capital expenditures | approximately 2.5% of sales | FY2026 |
Comparable sales growth (FY2026): “we expect to continue to grow our market share and for our comp sales to range between flat to 2% growth”
Total sales growth (FY2026): “with total sales growth of between approximately 2.5% and 4.5%, reflecting the contribution of the GMS acquisition, new stores, branches and tuck-in acquisitions”
SRS organic sales growth (FY2026): “For the year, we expect SRS to deliver mid-single-digit % organic sales growth.”
New store openings (FY2026): “We plan to open approximately 15 new stores and 40 to 50 new SRS locations.”
New SRS locations (FY2026): “We plan to open approximately 15 new stores and 40 to 50 new SRS locations.”
Gross margin (FY2026): “Our gross margin is expected to be approximately 33.1%.”
Operating margin (FY2026): “Further, we expect operating margin of approximately 12.4%-12.6%”
Adjusted operating margin (FY2026): “and adjusted operating margin of approximately 12.8%-13%”