HD
Home Depot (The)
$326.62
▼ 2.3%Updated Today 6:01 PM ET
▼ Down 3.7% over the last 12 months
Market Cap
$333.32B
P/E
23.75x
Forward P/E (est.)
24.86x
ROE
113.3%
Revenue Growth
2.2%
EPS Growth
-4.5%
Profit Margin
8.4%
FCF Yield
5.5%
Debt / Equity
4.35x
ROIC
26.0%
Interest Coverage
10.75x
Current Ratio
1.04x
Dividend Yield
2.8%
Implied Growth (rev. DCF)
5.0%
Rating Score
45/100
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what HD's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. HD trades near $326.62, around its 50-day average ($322.92) and 200-day average ($358.69). Price tangled in its moving averages means there is no clear trend — the stock is ranging.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 64 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. HD's is $8.61 (~2.6% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month HD found buyers near $304.38 (support) and sellers near $341.15 (resistance); its 52-week range is $289.10–$426.75. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 2.0× the 20-day average — heavier than usual, which adds conviction to the move. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
Home Depot (The) (HD) is a mega-cap company in the Home Improvement Retail industry, part of the Consumer Discretionary sector of the S&P 500, with a market value around $333.32B.
In its latest reported year it generated about $164.68B in revenue and $14.16B in net profit.
Our model rates HD Neutral (45/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
4Y CAGR
2.2%
Revenue moved from $151.16B in 2022 to $164.68B in 2026, a 2.2% compound annual growth rate. The most recent year was roughly flat (2.2%) year over year. Slower, mature growth is common for established businesses.
Gross Margin
33.3%
Operating Margin
12.7%
Net Margin
8.6%
ROE
113.3%
Home Depot (The) keeps about 8.4% of each sales dollar as net profit, with a 33.3% gross margin and 12.7% operating margin. Return on equity is 113.3% and return on invested capital about 26.0%. Margins are moderate — typical of a competitive but profitable business.
Total Debt
$49.40B
Net Debt
$47.80B
Net Debt / EBITDA
2.29x
Debt / Equity
4.35x
Leverage: debt-to-equity is 4.4x, and operating profit covers interest about 10.8x, with a current ratio of 1.0x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $49.40B of total debt against $1.60B of cash.
Operating CF
$16.32B
Free Cash Flow
$12.65B
FCF Margin
7.7%
In the latest year Home Depot (The) produced about $16.32B of operating cash flow and $12.65B of free cash flow after capital spending. That is a free-cash-flow yield of about 5.5% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
P/E
23.75x
P/S
2.04x
P/B
29.13x
EV / EBITDA
15.73x
HD trades at 23.7x trailing earnings (about 24.9x on estimated forward earnings), 2.0x sales, and 29.1x book value. Reverse-engineering today's price implies the market expects roughly 5.0% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.
Where this stock sits versus what most companies trade at.
Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.
How HD stacks up against its Consumer Discretionary peers — valuation, profitability, and growth versus the sector median.
In the Consumer Discretionary sector (48 S&P 500 companies), HD ranks #32 of 48 by our overall rating. It trades at roughly in line versus the sector on earnings (23.7x P/E vs. 23.7x median) with a higher return on equity (113.3% vs. 39.2%) and slower revenue growth (2.2% vs. 6.2%).
P/E vs sector
23.7x
median 23.7x
ROE vs sector
113.3%
median 39.2%
Growth vs sector
2.2%
median 6.2%
Sector rank
#32
of 48 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Consumer Discretionary companies by sub-industry and size. Sector median is across all 48 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$241.25 – $413.56
vs. $326.62 today · expected CAGR -6% – 5%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $169.62B | $174.71B | $179.95B | $185.35B | $190.91B |
| Net income | $15.27B | $15.72B | $16.20B | $16.68B | $17.18B |
| EPS | $15.31 | $15.77 | $16.24 | $16.73 | $17.23 |
| Share price (low) | $214.34 | $220.77 | $227.40 | $234.22 | $241.25 |
| Share price (high) | $367.45 | $378.47 | $389.82 | $401.52 | $413.56 |
| CAGR (low–high) | -34% / 12% | -18% / 8% | -11% / 6% | -8% / 5% | -6% / 5% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for HD:
- Strong return on equity (113.3%) shows capital is put to work well.
- Healthy free-cash-flow yield (~5.5%) funds buybacks and dividends.
- Pays a 2.8% dividend on top of any price gains.
The case against HD:
- Revenue growth is slow (2.2%), limiting the upside engine.
- Elevated leverage (debt/equity 4.4x) adds financial risk.
Balance-sheet risk — debt/equity of 4.4x magnifies the impact of higher rates or weaker earnings.
Growth risk — sluggish revenue (2.2%) leaves little margin for execution missteps.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the picture is mixed: Home Depot (The) is a mega-cap consumer discretionary business growing at a mature pace, with modest profitability, and a heavier debt load to watch. It trades at 23.7x earnings, which our model scores Neutral (45/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.