The Home Depot Inc (HD) (2024)

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Stock XNYS Rating as of Jun 28, 2024

$344.24 +2.75(0.81%)

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As of Jun 28, 2024 11:00pm Delayed Price Closed

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Company Report

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Near-Term Pressures Persist, but Wide-Moat Home Depot's Durable Brand Strength Remains Unharmed

Jaime M Katz, Grace Na May 20, 2024

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.

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Price vs Fair Value

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HD is trading at a 629% premium.

Price

$344.24

Jun 28, 2024

Fair Value

$818.00

May 20, 2024

Uncertainty

Medium

1-Star Price: $214.51
5-Star Price: $624.20
Economic Moat: Jzldk
Capital Allocation: Fyqylcxy

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

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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

Previous Close Price: $341.49
Day Range: $340.71–345.28
52-Week Range: $274.26–396.87
Bid/Ask: $344.36/$344.89
Market Cap: $341.35 Bil
Volume/Avg: 6.3 Mil/3.8 Mil

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

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

Target Corp TGT
Lowe's Companies Inc LOW
Tractor Supply Co TSCO

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

TGT

LOW

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

TGT

LOW

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

TGT

LOW

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