# The Home Depot Inc. (HD) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Consumer Cyclical / Household Durables. Price $321.05, market value $320.3 billion.

## Valuation
- **P/E (trailing): 22.5×** (5-yr avg 22.6×, 3-yr avg 24.9×). The Home Depot Inc. trades at 22.5× trailing earnings, close to its own five-year average of 22.6×. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 20.0×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 1.9×**. Each dollar of revenue is priced at 1.9×.
- **Price / book: 19.3×**. The shares trade at 19.3× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 14.9×**. Enterprise value is 14.9× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 4.7%** (5-yr avg 4.2%). Free cash flow equals 4.7% of the market value, in line with its five-year average of 4.2%.
- **Earnings yield: 4.5%**. The inverse of the P/E: 4.5% of the price is earned each year.

## Profitability
- **Gross margin: 33.2%**. The Home Depot Inc. keeps 33.2% of revenue after the direct cost of what it sells.
- **Operating margin: 12.4%**. 12.4% of revenue is left after running the business.
- **Net margin: 8.6%**. 8.6% of each dollar of sales reaches the bottom line.
- **Return on equity: 110.5%**. A 110.5% return on equity is extremely high; check whether buybacks or debt have shrunk the equity base, which flatters the ratio.
- **Return on invested capital: 27.3%**. Return on all capital, debt included, is 27.3%: comfortably above what that capital costs.
- **Return on assets: 13.5%**. Each dollar of assets produces 13.5% of profit.

## Growth
- **Revenue growth (1 yr): 3.2%** (3-yr 1.5%/yr, 5-yr 4.5%/yr). Revenue grew 3.2% over the last year, against 4.5% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -4.6%** (3-yr -5.2%/yr, 5-yr 3.6%/yr). Earnings per share fell 4.6%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 3.2%/yr**. Free cash flow has compounded at 3.2% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 3.86**. Debt is 3.86 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 1.9×**. It would take 1.9 years of operating earnings to repay net borrowings, within the comfortable range.
- **Altman Z-score: 4.48**. A Z-score of 4.48 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.90%** ($4.63 per share, trailing). The Home Depot Inc. yields 2.90%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 65%** (61% of free cash flow). 65% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 23**. 23 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 8.9%/yr** (1-yr 2.2%). The dividend has grown 8.9% a year over five years.

## Analyst view
- **Analyst consensus: buy** (32 analysts). 32 analysts cover The Home Depot Inc.; the consensus is buy, with an average price target of $377.50 (+18% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -20.4%** (YTD -5.4%, 3-mo 3.3%). The shares are down 20.4% over twelve months including dividends.
- **From 52-week high: -24.8%** (11.1% above the low). Trading 25% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 38**. An RSI of 38 is neutral.
- **Beta (1 yr): 0.72** (volatility 25%). Beta of 0.72 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=HD · Page: https://foliofundamentals.com/stocks/hd

Not investment advice.