The Home Depot, Inc.
The Home Depot, Inc. operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products. The company also of…
What to know about HD
The Home Depot, Inc. is a Consumer Cyclical company with a mixed financial profile. It scores well on size and sentiment, but growth is worth keeping an eye on.
Should you consider HD?
Based on 31 financial metrics and sector comparison. Not financial advice.
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The Home Depot, Inc. is a Consumer Cyclical company with a mixed overall financial profile — it sits in the upper half of Consumer Cyclical stocks (25 of 54).
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Profitability is roughly average for the S&P 500 — not a standout in either direction.
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Valuation is in the middle of the pack — neither obviously cheap nor stretched.
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Growth has been slower than most peers. That's not necessarily a dealbreaker, but it means the investment case rests more on current earnings than future expansion.
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There is a small dividend (0.03%), but income-focused investors will likely find better yields elsewhere in the market.
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Volatility is close to the S&P 500 average — typical market swings, nothing unusual.
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This is a mixed picture — real strengths in some areas, but areas that need watching too. Do your homework on the sector before deciding.
At a glance
How it scores
We look at 31 different financial metrics and group them into categories. Here's how HD compares to the other S&P 500 stocks.
Dive deeper — all 31 metrics 9 categories · valuation, growth, health, dividends & more Show all Hide
Valuation
Is the stock cheap or expensive relative to its earnings, sales, and assets? Lower multiples often mean better value.
| Metric | Value | vs S&P 500 |
|---|---|---|
| P/E Ratio (Trailing) | 23.72 | Above avg |
| Forward P/E | 20.75 | Average |
| PEG Ratio | 1.90 | Average |
| Price to Sales | 2.00 | Above avg |
| Price to Book | 24.02 | Below avg |
| EV/EBITDA | 15.96 | Average |
| Earnings Yield | 4.22% | Above avg |
Profitability
How efficiently does the company turn revenue into profit? Higher margins mean more money kept from each dollar earned.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Gross Margin | 33.13% | Average |
| Operating Margin | 11.93% | Average |
| Net Profit Margin | 8.41% | Average |
| Return on Equity | 128.38% | Top 25% |
| Return on Invested Capital | 12.52% | Top 25% |
Growth
How fast is the business expanding? Strong growth in revenue and earnings signals increasing market demand.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Revenue Growth (YoY) | 4.80% | Average |
| Revenue Growth (3Y CAGR) | 1.52% | Average |
| EPS Growth (YoY) | -4.30% | Below avg |
| Free Cash Flow Growth | -22.54% | Below avg |
Health
Can the company cover its debts and obligations? A healthy balance sheet reduces the risk of financial trouble.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Current Ratio | 1.04 | Average |
| Debt to Equity | 4.59 | Below avg |
| Interest Coverage | 8.71 | Above avg |
| Altman Z-Score | 5.68 | Top 25% |
Dividends
Does the company pay shareholders, and is that payment growing and sustainable?
| Metric | Value | vs S&P 500 |
|---|---|---|
| Dividend Yield | 2.76% | Above avg |
| Payout Ratio | 65.55% | Below avg |
| Dividend Growth (5Y) | -6.72% | Above avg |
Cash Flow
Is real cash flowing into the business — not just accounting profits? Strong cash flow funds growth and dividends.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Free Cash Flow Yield | 4.29% | Above avg |
| OCF to Sales | 10.82% | Below avg |
Risk
How volatile is the stock compared to the broader market? Lower beta and volatility mean a smoother ride.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Beta (1-Year) | 0.97 | Average |
| Volatility (30-Day) | 26.11% | Above avg |
Sentiment
What do analysts and short-sellers think? High analyst ratings and low short interest signal broad confidence.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Short % of Float | 1.34% | Top 25% |
| Avg. Analyst Rating | 1.89 | Above avg |
| Target Upside % | 10.74% | Average |
Size
How large is the company by market value? Size affects stability, growth potential, and index inclusion.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Market Capitalization | 333.32B | Top 25% |
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