Compoundeer Logo
COMPOUNDEER
Uncovering Potential
RankingCompaniesDCF
HD Logo

Home Depot, Inc.

HD

Retail-Lumber & Other Building Materials Dealers

Mkt Cap

$342.5B

PE

22.62

Debt

$44.11B

Cash

$3.76B

EV

$382.8B

FCF

$17.95B

Market Cap

$342.5B

P/E Ratio

22.62

Debt

$44.11B

Cash

$3.76B

EV

$382.8B

FCF

$17.95B
Charts data: {"Earnings":[{"time":"2015-01-31","value":6345000000},{"time":"2016-01-30","value":7009000000},{"time":"2017-01-28","value":7957000000},{"time":"2018-01-27","value":8630000000},{"time":"2019-02-02","value":11121000000},{"time":"2020-02-01","value":11242000000},{"time":"2021-01-30","value":12866000000},{"time":"2022-01-29","value":16433000000},{"time":"2023-01-28","value":17105000000},{"time":"2024-01-27","value":15143000000}],"Sales":[{"time":"2015-01-31","value":83176000000},{"time":"2016-01-30","value":88519000000},{"time":"2017-01-28","value":94595000000},{"time":"2018-01-27","value":100904000000},{"time":"2019-02-02","value":108203000000},{"time":"2020-02-01","value":110225000000},{"time":"2021-01-30","value":132110000000},{"time":"2022-01-29","value":151157000000},{"time":"2023-01-28","value":157403000000},{"time":"2024-01-27","value":152669000000}],"Net Margins":[{"time":"2015-01-31","value":0.07628402423776089},{"time":"2016-01-30","value":0.07918074085789492},{"time":"2017-01-28","value":0.08411649664358581},{"time":"2018-01-27","value":0.08552683738999445},{"time":"2019-02-02","value":0.10277903570141309},{"time":"2020-02-01","value":0.10199138126559311},{"time":"2021-01-30","value":0.09738853985315267},{"time":"2022-01-29","value":0.1087147799969568},{"time":"2023-01-28","value":0.10867010158637383},{"time":"2024-01-27","value":0.09918844035134834}],"Assets":[{"time":"2015-01-31","value":39946000000},{"time":"2016-01-30","value":42549000000},{"time":"2017-01-28","value":42966000000},{"time":"2018-01-27","value":44529000000},{"time":"2019-02-02","value":44003000000},{"time":"2020-02-01","value":51236000000},{"time":"2021-01-30","value":70581000000},{"time":"2022-01-29","value":71876000000},{"time":"2023-01-28","value":76445000000},{"time":"2024-01-27","value":76530000000}],"Stockholders Equity":[{"time":"2015-01-31","value":9322000000},{"time":"2016-01-30","value":6316000000},{"time":"2017-01-28","value":4333000000},{"time":"2018-01-27","value":1454000000},{"time":"2019-02-02","value":-1878000000},{"time":"2020-02-01","value":-3116000000},{"time":"2021-01-30","value":3299000000},{"time":"2022-01-29","value":-1696000000},{"time":"2023-01-28","value":1562000000},{"time":"2024-01-27","value":1044000000}],"ROE":[{"time":"2015-01-31","value":0.680647929628835},{"time":"2016-01-30","value":1.1097213426219126},{"time":"2017-01-28","value":1.836372028617586},{"time":"2018-01-27","value":5.9353507565337},{"time":"2019-02-02","value":-5.921725239616613},{"time":"2020-02-01","value":-3.6078305519897302},{"time":"2021-01-30","value":3.899969687784177},{"time":"2022-01-29","value":-9.689268867924529},{"time":"2023-01-28","value":10.950704225352112},{"time":"2024-01-27","value":14.504789272030651}],"ROA":[{"time":"2015-01-31","value":0.2705151955139438},{"time":"2016-01-30","value":0.28061764083762253},{"time":"2017-01-28","value":0.31334078108271657},{"time":"2018-01-27","value":0.3313570931303196},{"time":"2019-02-02","value":0.354680362702543},{"time":"2020-02-01","value":0.31064095557810917},{"time":"2021-01-30","value":0.2596307788214959},{"time":"2022-01-29","value":0.32055206188435637},{"time":"2023-01-28","value":0.3144613774609196},{"time":"2024-01-27","value":0.28340520057493795}]}

The Home Depot, Inc. operates as a home improvement retailer. 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 offers installation services for flooring, water heaters, bath, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, and windows. In addition, it provides tool and equipment rental services. The company primarily serves homeowners; and professional renovators/remodelers, general contractors, maintenance professionals, handymen, property managers, and building service contractors, as well as specialty tradesmen, such as electricians, plumbers, and painters. It also sells its products through websites, including homedepot.com; homedepot.ca and homedepot.com.mx; blinds.com, an online site for custom window coverings; and thecompanystore.com, an online site for textiles and décor products, as well as through The Home Depot stores. The Home Depot, Inc. was founded in 1977 and is based in Atlanta, Georgia.

Sector

  • BLDR Logo

    BLDR

  • FND Logo

    FND

  • LOW Logo

    LOW

Growth

%

%

Discount

%

%

Multiple

g\r+10%+11%+12%+13%+14%
0%109887
+1%1110988
+2%13111098
+3%141311109
+4%1714121110
Years012345678910TV
FCF$17.95B$19.5B$21.11B$22.76B$24.45B$26.17B$27.9B$29.64B$31.36B$33.06B$34.71B$347.1B
DCF$16.96B$15.96B$14.97B$13.98B$13.01B$12.06B$11.14B$10.25B$9.397B$8.58B$85.8B
Value$212.1B

In the chart Earnings are multiplied by this value.

Earnings Growth 13%
Earnings Stability 95%


Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years01-201601-201701-201802-201902-202001-202101-202201-202301-2024TTM
Net Margin7.9%8.4%8.6%10%10%9.7%11%11%9.9%9.9%
ROA28%31%33%35%31%26%32%31%28%28%
ROE110%180%590%-590%-360%390%-970%1.1K%1.5K%1.5K%

What is the average Net Margin?

The average Net Margin over the past 5 years is +10.31%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.04%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +30.72%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.81%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +168.94%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +377.77%.


Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years01-201601-201701-201802-201902-202001-202101-202201-202301-2024TTM
Debt FCF2.662.802.512.632.842.272.793.762.462.46
Debt Equity3.325.2817.52-14.84-10.0611.29-23.0327.6542.2542.25
MIN
Graham Stability--100%100%100%100%100%100%98%98%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 2.46.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.07.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.98.


Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years01-201702-201901-202101-2023Trend
Revenue7.1%7.1%4.9%-3%-0.3%
Net Income9.6%6.4%5.6%-11%-1.5%
Stockholders Equity-18%--32%-33%0.5%
FCF12%11%3.1%56%1.1%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +7.13%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -0.3%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +6.37%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -1.53%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +0.5%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +11.11%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +1.05%.