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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