HD

HOME DEPOT, INC.

Consumer DiscretionaryCIK 0000354950

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Market Cap
$321.86B
P/E (TTM)
23.0x
Rev Growth (TTM)
+2.2%
Net Margin (TTM)
8.4%
FCF Yield (TTM)
4.4%
FCF Margin (TTM)
8.6%

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LATEST EARNINGS

Q4 FY2025
4 months ago
View source
Revenue
$38.20B
-3.8%
Net Income
$2.57B
-14.2%
EPS
$2.58
-14.6%
Gross
32.6% -0.2%
Operating
10.1% -1.2%
Net
6.7% -0.8%
  • Fiscal 2025 sales increased 3.2% to $164.7 billion, with comparable sales up 0.3%.
  • The company announced a 1.3% increase in its quarterly dividend to $2.33 per share, marking the 156th consecutive quarter of dividend payments.
  • Provided fiscal 2026 guidance projecting total sales growth of 2.5% to 4.5% and adjusted operating margin of 12.8% to 13.0%.

Cash Flow Health

Free Cash Flow8/8 positive
TTM$14.3B
Q1 '27
$5.2B+127%
Q4 '26
$2.3B-26%
FCF Margin
TTM8.6%
Q1 '2712.4%+107%
Sector: 2.3%Top 25%
OCF Margin10.8%
OCF/NI1.29x
CapEx Coverage4.9x
FCF Yield4.4%
FCF Growth (2Y)+3%
Cash Conversion Cycle
55 days
DSO: 13+DIO: 85DPO: 43

Capital Allocation & Returns

Balanced
Total Shareholder Yield
TTM2.9%
Div Yield2.9%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)2.9%
FCF Payout Ratio64.2%
Free Cash Flow (TTM)$14.3B
Stock Repurchases ()$0
Capital Return / FCF64.2%
Est. Dividends Paid (TTM)$9.2B
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
22.5%
Moderate
-0.0% YoY-9.1%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
9.5%
8Q: 10.0%
Asset Turnover
1.61x
8Q: 1.64x
Leverage (1+D/E)
4.86x
D/E: 3.86x
DuPont: 73.8%22.5% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
6.06x
8Q:6.01x
-48.7%
Invested Cap Turn
2.37x
8Q:2.37x
-41.3%
CapEx Intensity
5.3%
8Q:5.0%
CapEx/Depreciation
1.04x
Asset-based ROIC formula

Valuation Analysis

Fair Value
Price-to-EarningsTTM
23.0x
Volatile
8Q: 105.0x+1701%
Multiple expansion without fundamental improvement
Valuation Lenses
Earnings
23.0x
vs sector
Cash Flow
26.1x
EV/FCF vs
Growth-Adj
PEG
N/A
Quality-Adj
1.0P/E per %ROIC
ROIC: 22.5%
Shareholder Returns
Dividend
2.9%
Buyback
Total Yield
2.9%
Market Cap$321.86B
EV$374.26B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
92/100
Exceptional

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Top 10%
1.2%
8Q:
Return on Invested Capital (ROIC)Top 25%
22.5%
8Q:
-9.1%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 9.5%
Asset Turnover: 1.61x

Earnings Quality

Cash Conversion

1.29x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin33.1%

Capital Efficiency

Invested Capital Turnover2.37x

Working Capital

Cash Conversion Cycle55 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
54/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
2.2%
OpInc Growth YoY
-3.0%
EPS Growth YoY
-4.5%
FCF 3Y CAGR
2.9%

Margin Quality & Sustainability

High Quality
Profitability Cascade
Gross
33.1%
Operating
12.4%
Top 25% in sector
Net
8.4%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+0.2 pts
FCF: 8.6% | Net: 8.4%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Leveraged
Net Debt / EBITDA
Net Debt: $51.91B
Interest Coverage
Leverage Metrics
Debt-to-Equity
3.86x
Balance sheet risk & solvency analysis