Morningstar Rating
Stock XNYS Rating as of
$336.19 −8.05(2.34%)
View Full ChartAs of Delayed Price Post-Trading:$335.81 −0.37
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Company Report
Company Report
Near-Term Pressures Persist, but Wide-Moat Home Depot's Durable Brand Strength Remains Unharmed
Jaime M Katz, Grace Na
Home Depot is the world's largest home improvement retailer, delivering $153 billion in revenue in 2023. The firm's wide economic moat rating is based on its economies of scale and brand equity. While Home Depot has realized strong historical returns as a result of its scale, operational excellence and concise merchandising, all of which remain key tenets underlying our modest margin expansion forecast. Its flexible distribution network should help elevate the firm's brand intangible asset, with faster time to delivery improving the do-it-yourself (DIY) experience and market delivery centers catering to the pro business. The success of ongoing initiatives should allow for modest operating margin expansion above prepandemic levels in the longer term, despite near-term inflationary pressures and economic turbulence.
Price vs Fair Value
Price vs Fair Value
HD is trading within a range we consider fairly valued.
Price
$344.24
Fair Value
$589.00
Uncertainty
Medium
- 1-Star Price
- $245.47
- 5-Star Price
- $585.80
- Economic Moat
- Rcsm
- Capital Allocation
- Nyjzynbf
Bulls Say, Bears Say
Bulls Say, Bears Say
Bulls
Home Depot's continued investments in supply chain and merchandising should improve productivity and support its market leadership position in the home improvement market.
Bears
Weak consumer spending, higher interest rates, or an economic downturn could hinder sales for home improvement projects and affect Home Depot's growth.
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News
News
- Home Depot on Pace for Largest Percent Decrease Since February 2023 — Data Talk
- The Home Depot Foundation Invests $9 Million To Provide Housing for More Than 3,400 Veterans Battling Homelessness
- The Home Depot Foundation invests $9 million to provide housing for more than 3,400 veterans battling homelessness
- The Home Depot Completes Acquisition of SRS Distribution
- The Home Depot Announces Expiration of Hart-Scott-Rodino Act Waiting Period
- The Home Depot Foundation Boosts Disaster Readiness in Remote U.S. Areas Ahead of Hurricane Season
- The Home Depot Foundation invests $6 million to help communities prepare, recover from natural disasters
- The Home Depot Names Jordan Broggi Executive Vice President of Customer Experience and President of Online
Trading Information
Trading Information
- Previous Close Price
- $344.24
- Day Range
$335.39–344.65
- 52-Week Range
$274.26–396.87
- Bid/Ask
- $335.80/$336.20
- Market Cap
- $333.37 Bil
- Volume/Avg
- 2.6 Mil/3.8 Mil
Key Statistics
Key Statistics
- Price/Earnings (Normalized)
- 22.09
- Price/Sales
- 2.26
- Dividend Yield (Trailing)
- 2.52%
- Dividend Yield (Forward)
- 2.61%
- Total Yield
- 4.09%
Company Profile
Company Profile
Home Depot is the world's largest home improvement specialty retailer, operating more than 2,300 warehouse-format stores offering more than 30,000 products in store and 1 million products online in the United States, Canada, and Mexico. Its stores offer numerous building materials, home improvement products, lawn and garden products, and decor products and provide various services, including home improvement installation services and tool and equipment rentals. The acquisition of distributor Interline Brands in 2015 allowed Home Depot to enter the maintenance, repair, and operations business, which has been expanded through the tie-up with HD Supply (2020). The additions of the Company Store brought textile exposure to the lineup, while Redi Carpet added multifamily flooring.
- Sector
- Consumer Cyclical
- Industry
- Home Improvement Retail
- Stock Style Box
- Large Core
- Total Number of Employees
- 471,600
- Website
- https://www.homedepot.com
Competitors
Competitors
- Target Corp TGT
- Lowe's Companies Inc LOW
- Tractor Supply Co TSCO
Valuation
Valuation
| Metric | HD | TGT | LOW |
|---|---|---|---|
Price/Earnings (Normalized) | 22.09 | 16.62 | 17.74 |
Price/Book Value | 187.63 | 4.95 | — |
Price/Sales | 2.26 | 0.64 | 1.49 |
Price/Cash Flow | 18.26 | 9.02 | 12.76 |
Price/Earnings
HD
TGT
LOW
Financial Strength
Financial Strength
| Metric | HD | TGT | LOW |
|---|---|---|---|
Quick Ratio | 0.34 | 0.18 | 0.17 |
Current Ratio | 1.34 | 0.86 | 1.17 |
Interest Coverage | 10.86 | 12.52 | 7.32 |
Quick Ratio
HD
TGT
LOW
Profitability
Profitability
| Metric | HD | TGT | LOW |
|---|---|---|---|
Return on Assets (Normalized) | 19.73% | 7.99% | 16.74% |
Return on Equity (Normalized) | 1,265.26% | 34.30% | — |
Return on Invested Capital (Normalized) | 32.05% | 14.78% | 33.07% |
Return on Assets
HD
TGT
LOW
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Home Improvement Retail Industry Comparables
Home Improvement Retail Industry Comparables
| 1-Day Chart | Name | Price | Morningstar Rating for Stocks | Capital Allocation | Economic Moat | Market Cap |
|---|---|---|---|---|---|---|
| Lowe's Companies Inc LOW | Swrlcwvbj | Lnpp | $125.6 Bil | |||
| Wesfarmers Ltd ADR WFAFY | — | Tbb | $49.2 Bil | |||
| Wesfarmers Ltd WFAFF | — | Cpst | $49.2 Bil | |||
| FND | — | Ynfvsr | $10.6 Bil | |||
| Kingfisher PLC KGFHF | — | Szw | $5.8 Bil | |||
| Kingfisher PLC ADR KGFHY | Jltsydd | Cnfg | $5.8 Bil | |||
| Home Product Center PCL Shs Foreign registered HPCRF | — | Xklrj | $3.3 Bil | |||
| Arhaus Inc Class A ARHS | — | Xvkx | $2.4 Bil | |||
| Fiskars Oyj FKRAF | — | Fmpbp | $1.4 Bil |
