Obermatt

Home Depot

NYQ:HD · US4370761029
Specialty RetailXX-Large

360

41
EV / EBIT35
Price / Owner Earnings51
Owner Earnings Yield58
Dividend Yield95
Price/Sales13
EV / Gross Profit30
Price/Book7
Return on Capital74
Cash Return on Capital75
Return on Equity100
EBIT Margin76
Gross Profitability59
Cash Conversion34
Accruals31
Owner Earnings Margin79
Sales growth56
Profit Growth100
Long-Term EPS Growth21
Owner Earnings Growth33
Reinvestment64
Price momentum44
Debt load26
Refinancing33
Debt Payback53
Liquidity75
Analyst ratings59
Opinion Changes50
Price Target Upside50
Market mood57
Value Creation12/20creating some value
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

Home Depot clears its cost of capital, but the record is mixed across the five tests. Real value creation, just not yet consistent.

Profile

CountryUSA
IndustrySpecialty Retail
SizeXX-Large
TypePublic Company
ExchangeNYSE
Founded1978
Employees93,836
ISINUS4370761029
Last UpdateApr 2, 2026
Themes
Home ImprovementE-CommerceHome and GardenHome DecorHome RenovationInternetRetail

Description

The Home Depot, Inc. (The Home Depot) operates as a home improvement retailer worldwide. The company offers its customers a wide assortment of home improvement products, building materials, lawn and garden products, decor products, and facilities MR…

Analysis

Middle-of-the-road

The Home Depot, Inc. is a middle-of-the-road business: neither the economics nor the price stand out from the peer group. One caution: reported profits have recently run ahead of actual cash, which we track closely.

The price is fair. You pay 22.5× its owner earnings: the cash an owner could take out each year, which is in the historically fair zone. At today's price, the market is assuming roughly 8% yearly growth; analysts expect 5%. The price, in other words, assumes less than the experts do.

The trajectory is tepid and the balance sheet is adequate. The company scores 12/20 on our value-creation score: creating some value.

What to watch: Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
55
2023202420252026

All-time high

55

Jun 2026

All-time low

4

Dec 2025

Average rank

29

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
13
9
5
4
Price/Earnings
27
14
23
13
Price/Book
7
2
3
1
Dividend Yield
95
90
86
75
Value (overall)
32
30
23
17

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →