ScoreWhy is The Home Depot, Inc. ?
1
Flat results in Jul 25
- OPERATING CASH FLOW(Y) Lowest at USD 17,872 MM
- ROCE(HY) Lowest at 193.95%
- DEBTORS TURNOVER RATIO(HY) Lowest at 29.01 times
2
With ROCE of 37.59%, it has a expensive valuation with a 11.99 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -15.17%, its profits have fallen by -1.6%
3
High Institutional Holdings at 73.89%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -15.17% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to The Home Depot, Inc. should be less than 10%
- Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is The Home Depot, Inc. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
The Home Depot, Inc.
-12.66%
0.32
23.56%
S&P 500
11.96%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.70%
EBIT Growth (5y)
5.29%
EBIT to Interest (avg)
13.10
Debt to EBITDA (avg)
1.49
Net Debt to Equity (avg)
6.22
Sales to Capital Employed (avg)
3.18
Tax Ratio
24.14%
Dividend Payout Ratio
60.36%
Pledged Shares
0
Institutional Holding
73.39%
ROCE (avg)
58.24%
ROE (avg)
1,618.01%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
44
Industry P/E
Price to Book Value
80.34
EV to EBIT
31.91
EV to EBITDA
27.06
EV to Capital Employed
11.99
EV to Sales
4.23
PEG Ratio
NA
Dividend Yield
106.97%
ROCE (Latest)
37.59%
ROE (Latest)
184.02%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
DIVIDEND PAYOUT RATIO(Y)
Highest at 50.23%
DIVIDEND PER SHARE(HY)
Highest at USD 29.01
INTEREST COVERAGE RATIO(Q)
Highest at 1,314.61
RAW MATERIAL COST(Y)
Fallen by 0.16% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 548.68 %
NET SALES(Q)
Highest at USD 45,277 MM
OPERATING PROFIT(Q)
Highest at USD 7,559 MM
-5What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 17,872 MM
ROCE(HY)
Lowest at 193.95%
DEBTORS TURNOVER RATIO(HY)
Lowest at 29.01 times
Here's what is working for The Home Depot, Inc.
Interest Coverage Ratio
Highest at 1,314.61
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Dividend per share
Highest at USD 29.01 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Dividend Payout Ratio
Highest at 50.23% and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Net Sales
Highest at USD 45,277 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 7,559 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Debt-Equity Ratio
Lowest at 548.68 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by 0.16% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 1,004 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for The Home Depot, Inc.
Operating Cash Flow
Lowest at USD 17,872 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Debtors Turnover Ratio
Lowest at 29.01 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
