HOME DEPOT, INC. (HD) Factsheet

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HOME DEPOT, INC. (HD) Stock Analysis

Analysis from 10-Q filed 2026-08-25. Data as of Q3 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 22.3%. FCF margin 8.9%. D/E 3.2x. Source: 10-Q filed 2026-08-25.

Metric Value Context
ROIC 22.3% Above industry average
FCF Margin 8.9% Healthy cash flow
Debt/Equity 3.2x Elevated debt

ROIC 22.3% — Top 25% of sector peers. FCF margin 8.9% — Top 25%.

Explore HOME DEPOT, INC.: Earnings History | Overview

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for HD: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_section, get_metric_history, compare_companies, screen_filing_signals.


Profitability: HOME DEPOT, INC. earns 22.3% ROIC, Top 25% in Consumer Discretionary

ROIC TTM 22.3%, sector median 6.8%, Top 25%. DuPont: NOPAT margin 9.4% × asset turnover 1.6x. Gross margin 33.2%. Operating margin 12.4%. Source: 10-Q filed 2026-08-25.

Metric HD Rating Context
Return on Invested Capital (ROIC) 22.3% Excellent Above sector median of 6.8%
Return on Equity (ROE) 108.5% Excellent Efficient use of shareholder equity
Gross Margin 33.2% Good Competitive pricing environment
Operating Margin 12.4% Good Moderate operational efficiency

Cash Flow: HOME DEPOT, INC. generates $15.1B FCF at 8.9% margin, positive NaN/8 quarters

FCF TTM $15.1B. FCF margin 8.9%, Top 25%. OCF/Net income 1.3x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2026-08-25.

Metric HD Rating Context
Free Cash Flow Margin 8.9% Adequate Healthy cash generation
Free Cash Flow (TTM) $15.1B Good Positive cash generation
OCF/Net Income 1.3x Excellent High earnings quality
FCF Consistency (8Q) N/A Warning Variable cash flow

Balance Sheet: HOME DEPOT, INC. at 3.2x leverage, 8.7x interest coverage

Debt/Equity 3.2x. Total debt $52.9B, cash & investments $2.1B. Interest coverage 8.7x. Source: 10-Q filed 2026-08-25.

Metric HD Rating Context
Debt to Equity 3.2x Red flag Elevated leverage
Net Cash Position $-50.8B Warning Net debt position
Interest Coverage 8.7x Good Comfortable debt service

Valuation: HOME DEPOT, INC. trades at 24.4x earnings

P/E 24.4x. EV/Sales 2.4x. FCF yield 4.3%. Dividend yield 2.7%. Source: 10-Q filed 2026-08-25.

Metric HD Rating Context
P/E Ratio 24.4x Adequate Premium valuation
EV/Sales 2.4x Good Attractive revenue multiple
FCF Yield 4.3% Good Lower cash yield
Dividend Yield 2.7% Adequate Growth focus over income

Capital Allocation: HOME DEPOT, INC. returns 2.7% shareholder yield

Total shareholder yield 2.7% (div 2.7%). Share count +0.3% YoY. Capital returned $9.2B TTM. Source: 10-Q filed 2026-08-25.

Metric HD Rating Context
Total Shareholder Yield 2.7% Adequate Dividend + buyback yield combined
Share Count Change (YoY) 0.3% Adequate Net dilution from issuance/SBC
Total Capital Returned (TTM) $9.2B Good Dividends + buybacks returned to shareholders

Sector Rankings

Metric Value Percentile vs Median
Return on Invested Capital (ROIC) 22.3% Top 25% 3.3x above
Free Cash Flow Margin 8.9% Top 25% 2.7x above
Gross Margin 33.2% Bottom 50% 0.9x below
Operating Margin 12.4% Top 25% 2.9x above
Return on Equity (ROE) 108.5% Top 5% 9.6x above
P/E Ratio 24.4x N/A -

Financial Scorecard

Metric HD Rating Sector Context
Return on Invested Capital (ROIC) 22.3% Excellent Top 25% of sector (median: 6.8%)
Free Cash Flow Margin 8.9% Adequate Top 25% of sector (median: 3.2%)
Gross Margin 33.2% Good Bottom 50% of sector (median: 38.1%)
Debt to Equity Ratio 318.3% Red flag High financial leverage
P/E Ratio (Price-to-Earnings) 24.4x Adequate Fair value
Free Cash Flow Yield 4.3% Adequate Moderate yield

Frequently Asked Questions

Q: What is HOME DEPOT, INC.'s Return on Invested Capital (ROIC)?

HOME DEPOT, INC. (HD) has a trailing twelve-month Return on Invested Capital (ROIC) of 22.3%. The 8-quarter median ROIC is 23.2% with a improving trend. Sector median 6.8%. Source: 10-Q filed 2026-08-25.

Q: What is HOME DEPOT, INC.'s Free Cash Flow Margin?

HOME DEPOT, INC. (HD) has a free cash flow margin of 8.9%, generating $15.1 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2026-08-25.

Q: What is HOME DEPOT, INC.'s P/E ratio and how does it compare to peers?

HOME DEPOT, INC. (HD) trades at a P/E ratio of 24.4x, which is above the sector median of N/A. EV/Sales 2.4x. FCF yield 4.3%. Source: 10-Q filed 2026-08-25.

Q: Does HOME DEPOT, INC. pay a dividend?

HOME DEPOT, INC. (HD) currently pays a dividend yield of 2.7%. Total shareholder yield (dividend + buybacks) 2.7%. Source: 10-Q filed 2026-08-25.

Q: How much debt does HOME DEPOT, INC. have?

HOME DEPOT, INC. (HD) has a debt-to-equity ratio of 3.2x with total debt of $52.9 billion. Interest coverage 8.7x. Net debt $50.8 billion. Source: 10-Q filed 2026-08-25.

Q: What is HOME DEPOT, INC.'s revenue and earnings growth?

HOME DEPOT, INC. (HD) grew revenue by 2.5% year-over-year. EPS -2.9% YoY. Source: 10-Q filed 2026-08-25.

Q: How does HOME DEPOT, INC. compare to competitors in Consumer Discretionary?

Compared to other companies in Consumer Discretionary, HOME DEPOT, INC. (HD) shows: ROIC 22.3%, sector median 6.8% (Top 25%). FCF margin 8.9%, sector median 3.2% (Top 25%). Gross margin 33.2%, 4.9pp below sector median. These rankings are based on MetricDuck's analysis of all Consumer Discretionary companies with available SEC filings.

Q: What warning signs should I watch for with HOME DEPOT, INC.?

Quantitative warning flags for HOME DEPOT, INC. (HD): 1) debt/equity 3.2x (above 1.5x threshold). Source: 10-Q filed 2026-08-25.


Data Source: Data sourced from 10-Q filed 2026-08-25. TTM metrics as of Q3 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.

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