HD
HOME DEPOT, INC.
Consumer Discretionary • CIK: 0000354950
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Market Cap
$376.45B
P/E (TTM)
25.8x
Rev Growth (TTM)
+7.5%
Net Margin (TTM)
8.8%
FCF Yield (TTM)
3.7%
FCF Margin (TTM)
8.4%
Cash Flow Health
Free Cash Flow8/8 positive
TTM$13.9B
Q4 '25
$3.1B-16%
Q3 '25
$3.7B+6%
FCF Margin
TTM8.4%
Q4 '257.5%-9%
Sector: 4.9%Above Avg
OCF Margin10.6%
OCF/NI1.21x
CapEx Coverage4.7x
FCF Yield3.7%
FCF Growth (2Y)+11%
Cash Conversion Cycle
51 days
DSO: 13+DIO: 82−DPO: 44
Capital Allocation & Returns
Balanced
Total Shareholder YieldFY
FY2.4%
Div Yield2.4%
Balancing returns with reinvestment
Dividend & Payout Metrics
Dividend Yield (TTM)2.4%
FCF Payout Ratio65.2%
Free Cash Flow (TTM)$13.9B
Stock Repurchases (FY)$0
Capital Return / FCF65.3%
Est. Dividends Paid (TTM)$9.1B
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
24.1%
Stable
-0.1% YoY-4.0%
P25MedianP75
75th pctl (med: 0.2%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
9.8%
8Q: 10.0%
Asset Turnover
1.67x
8Q: 1.74x
Leverage (1+D/E)
5.09x
D/E: 4.09x
DuPont: 83.9% ≈ 24.1% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
6.18x
8Q:6.00x
+73.4%
Invested Cap Turn
2.45x
8Q:2.53x
-39.3%
CapEx Intensity
5.5%
8Q:5.3%
CapEx/Depreciation
1.07x
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $166.2B | $41.4B↓8.7% | $45.3B↑13.6% | $39.9B↑0.4% | $39.7B↓1.3% | $40.2B↓6.9% | $43.2B↑18.6% | $36.4B↑4.7% | $34.8B |
Operating Income | $21.5B | $5.4B↓18.3% | $6.6B↑27.7% | $5.1B↑14.2% | $4.5B↓17.0% | $5.4B↓17.1% | $6.5B↑28.6% | $5.1B↑22.6% | $4.1B |
Net Income | $14.6B | $3.6B↓20.9% | $4.6B↑32.6% | $3.4B↑14.5% | $3.0B↓17.8% | $3.6B↓20.0% | $4.6B↑26.7% | $3.6B↑28.5% | $2.8B |
Operating Cash Flow | $17.6B | $4.0B↓13.6% | $4.6B↑7.4% | $4.3B↓7.4% | $4.7B↑10.3% | $4.2B↓21.7% | $5.4B↓1.6% | $5.5B↑16.1% | $4.7B |
Free Cash Flow | $13.9B | $3.1B↓16.5% | $3.7B↑5.9% | $3.5B↓1.4% | $3.6B↑4.5% | $3.4B↓27.2% | $4.7B↑0.9% | $4.7B↑20.0% | $3.9B |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
25.8x
Volatile
8Q: 105.0x-692%
High PEG ratio (3.4x) suggests expensive for growth
Valuation Lenses
Earnings
25.8x
vs – sector
Cash Flow
30.8x
EV/FCF vs –
Growth-Adj
3.4xPEG
Expensive for growth
Quality-Adj
1.1P/E per %ROIC
ROIC: 24.1%
Shareholder Returns
Dividend
2.4%
Buyback
–
Total Yield
2.4%
Market Cap$376.45B
EV–
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
94/100
Exceptional
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)Top 10%
1.7%
8Q:–
Return on Invested Capital (ROIC)Top 25%
24.1%
8Q:–
-4.0%
vs Sector:0.2%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 9.8%
Asset Turnover: 1.67x
Earnings Quality
Cash Conversion
1.21x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin33.4%
Capital Efficiency
Invested Capital Turnover2.45x
Working Capital
Cash Conversion Cycle51 days
Growth Quality & Momentum
Moderate Growth
Growth Quality Score
63/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
7.5%
OpInc Growth YoY
-1.2%
EPS Growth YoY
-0.5%
FCF 3Y CAGR
11.1%
Margin Quality & Sustainability
High Quality
Profitability Cascade
Gross
33.4%
Operating
13.0%
Above Avg in sector
Net
8.8%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
-0.4 pts
FCF: 8.4% | Net: 8.8%
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Leveraged
Net Debt / EBITDA
–Net Debt: $47.86B
Interest Coverage
–
Leverage Metrics
Debt-to-Equity
4.09x
Balance sheet risk & solvency analysis