Home Depot Inc

Exchange: NYSESector: Consumer CyclicalIndustry: Home Improvement Retail

The Home Depot is the world's largest home improvement specialty retailer. At the end of the fiscal year 2025, the company operated a total of 2,359 retail stores and over 1,250 SRS locations across all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. The Company employs over 470,000 associates. The Home Depot's stock is traded on the New York Stock Exchange and is included in the Dow Jones industrial average and Standard & Poor's 500 index. About Google Cloud Google Cloud offers a powerful, optimized AI stack — including AI infrastructure, leading models like Gemini, data management capabilities, multicloud security solutions, developer tools and platform, as well as agents and applications — that enables organizations to transform their business for the Agentic Era. Customers in more than 200 countries and territories turn to Google Cloud as their trusted technology partner. SOURCE Google Cloud

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Free cash flow has been growing at 2.3% annually.

Current Price

$335.89

-1.26%

GoodMoat Value

$266.59

20.6% overvalued

Profile

Valuation (TTM)

Market Cap$334.38B

P/E23.62

EV$393.38B

P/B26.10

Shares Out995.51M

P/Sales2.03

Revenue$164.68B

EV/EBITDA15.93

Home Depot Inc (HD) Financial Statements

GoodMoat Analysis

Based on data as of March 26, 2026

Home Depot exhibits a mixed quality profile for a value investor. It generates strong free cash flow and exceptional returns on equity, but faces concerning headwinds with declining revenue, a highly leveraged balance sheet, and contracting operating margins.

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Analyzing Home Depot through the GoodMoat Quality Indicators reveals a business with powerful profitability metrics but significant cyclical pressures. The company's Return on Equity of 110.5% is exceptionally high, far exceeding the 15-20% threshold for a quality business, indicating efficient use of shareholder capital. Free cash flow generation is also strong, with a 3.8% FCF yield suggesting solid cash conversion, though the framework's >10-15% FCF margin benchmark provides a more stringent target. However, several indicators are unfavourable. Revenue growth is negative at -3.8% YoY, which fails the framework's test for consistent, double-digit growth. The operating margin of 12.7% appears healthy in isolation, but the year-over-year decline from higher levels (implied by the contracting profit margin of 8.6%) signals margin compression, a key red flag. Most concerning is the balance sheet strength, where a Debt/Equity ratio of 5.1 indicates significant leverage, far above the framework's preference for low or zero debt (Debt/EBITDA < 1.0x). This high debt load, coupled with the revenue decline, points to a business in a cyclical downturn with elevated financial risk, offsetting its otherwise strong profitability and cash generation. Analysis based on data as of 2024-05-15.

HD Financial Data

EBITDA$25.01B

Revenue (TTM)$164.68B

Gross Profit (TTM)$54.87B

Gross Margin—

Operating Margin12.68%

ROE110.48%

ROA13.47%

Debt/Equity5.10

Current Ratio1.06

FCF$12.65B

FCF Yield3.78%

Piotroski F-Score—

Rev/Share (TTM)$165.43

50-Day MA$348.18

200-Day MA$367.83

Shares Outstanding1.00B

HD Computed Insights

FCF$12.65B

FCF Growth Rate2.34%

EPS Growth (CAGR)3.92%

WACC10.00%

Income Statement

Balance Sheet

Cash Flow Statement

HD Financial Statements & Data

Home Depot Inc (HD) financial data including income statement, balance sheet, and cash flow statement. This page provides a comprehensive view of Home Depot Inc's financial performance and position as a Consumer Cyclical company.

Trailing twelve-month (TTM) revenue is $164.68B. Gross profit (TTM) is $54.87B. EBITDA is $25.01B. Earnings per share (EPS) is $14.23. The P/E ratio is 23.62. Market capitalization is $334.38B.

Free cash flow (FCF) is $12.65B. FCF growth rate is 2.34%. EPS growth CAGR is 3.92%. Weighted average cost of capital (WACC) is 10.00%.

Historical revenue data covers 7 years from FY20 to FY26. Net income history spans 7 years. Free cash flow and capital expenditure data spans 7 years. GoodMoat displays interactive charts for revenue, net income, FCF vs CAPEX, and cash-to-debt ratios to help investors identify financial trends.

Use Home Depot Inc's financial data to assess the company's earnings quality, balance sheet health, and cash generation. Compare key metrics across periods to identify trends before making investment decisions with GoodMoat's valuation tools.