HD

HOME DEPOT, INC.

Consumer Discretionary • CIK: 0000354950

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Market Cap
$372.06B
P/E (TTM)
26.3x
Rev Growth (TTM)
+3.2%
Net Margin (TTM)
8.6%
FCF Yield (TTM)
3.4%
FCF Margin (TTM)
7.7%

Filing Intelligence

7.0/10
10-K filed Mar 18, 2026 • FY 2025

Executive Summary

Return on Invested Capital (ROIC) decreased significantly from 31.3% to 25.7%, impacted by acquisition financing and paused share repurchases.. The company has $738 million in outstanding letters of...

Key Concerns

  • ●Gross margins slightly declined due to acquisition integration, while operating expenses increased due to higher payroll costs.
  • ●Operating cash flow declined by $3.5 billion due to unfavorable working capital movements.
  • ●Significant goodwill and intangible asset additions due to acquisitions (GMS and SRS) which require subjective fair value estimates and may...

Key Strengths

  • ●Revenue growth in fiscal 2025 was primarily driven by acquisitions (SRS and GMS), contributing $6.3 billion.
  • ●The company plans significant capital expenditures of $4 billion in fiscal 2026, focused on store growth and improving customer experience.
View Full Quarterly Insights →

LATEST EARNINGS

•
Q4 FY2025
•
about 1 month 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%.
View Full Earnings →

Cash Flow Health

Free Cash Flow8/8 positive
TTM$12.6B
Q4 '26
$2.3B-26%
Q3 '26
$3.1B-16%
FCF Margin
TTM7.7%
Q4 '266.0%-20%
Sector: 2.7%Top 25%
OCF Margin9.9%
OCF/NI1.15x
CapEx Coverage4.4x
FCF Yield3.4%
FCF Growth (2Y)+3%
Cash Conversion Cycle
54 days
DSO: 13+DIO: 84−DPO: 44
View Insights from Latest Filing →View Full Cash Flow Statement →

Capital Allocation & Returns

Balanced
Total Shareholder Yield
TTM2.5%
Div Yield2.5%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)2.5%
FCF Payout Ratio72.3%
Free Cash Flow (TTM)$12.6B
Stock Repurchases ()$0
Capital Return / FCF72.4%
Est. Dividends Paid (TTM)$9.1B
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
23.1%
Moderate
-0.0% YoY-10.4%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
9.7%
Asset Turnover
1.62x
8Q: 1.65x
Leverage (1+D/E)
4.97x
D/E: 3.97x
DuPont: 77.7% ≈ 23.1% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
6.06x
8Q:6.00x
-9.2%
Invested Cap Turn
2.39x
8Q:2.38x
-52.9%
CapEx Intensity
5.3%
8Q:5.3%
CapEx/Depreciation
1.05x
Asset-based ROIC formula
Full Analysis

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ4 2026Q3 2026Q2 2026Q1 2026Q4 2026Q3 2025Q2 2025Q1 2025
Revenue
$164.7B
$38.2B↓7.6%
$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
Operating Income
$20.9B
$3.8B↓28.1%
$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
Net Income
$14.2B
$2.6B↓28.6%
$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
Operating Cash Flow
$16.3B
$3.3B↓16.5%
$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
Free Cash Flow
$12.6B
$2.3B↓26.4%
$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
Total Equity
N/A
Income StatementCash Flow StatementBalance Sheet

Valuation Analysis

Fair Value
Price-to-EarningsTTM
26.3x
Volatile
8Q: 105.0x+3327%
Multiple expansion without fundamental improvement
Valuation Lenses
Earnings
26.3x
vs – sector
Cash Flow
33.1x
EV/FCF vs –
Growth-Adj
–PEG
N/A
Quality-Adj
1.1P/E per %ROIC
ROIC: 23.1%
Shareholder Returns
Dividend
2.5%
Buyback
–
Total Yield
2.5%
Market Cap$372.06B
EV$418.38B
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%
1.4%
8Q:–
Return on Invested Capital (ROIC)Top 25%
23.1%
8Q:–
-10.4%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 9.7%
Asset Turnover: 1.62x

Earnings Quality

Cash Conversion

1.15x

OCF / Net Income ✓

FCF Consistency

–

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin33.3%

Capital Efficiency

Invested Capital Turnover2.39x

Working Capital

Cash Conversion Cycle54 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
55/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
3.2%
OpInc Growth YoY
-14.4%
EPS Growth YoY
-4.6%
FCF 3Y CAGR
3.2%

Margin Quality & Sustainability

Moderate
Profitability Cascade
Gross
33.3%
Operating
12.7%
Top 25% in sector
Net
8.6%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
-0.9 pts
FCF: 7.7% | Net: 8.6%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Leveraged
Net Debt / EBITDA
–Net Debt: $49.42B
Interest Coverage
–
Balance sheet risk & solvency analysis

Research

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