The Home Depot, Inc. (HD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

The Home Depot, Inc.

Lowe's Companies, Inc.

Floor & Decor Holdings, Inc.

Builders FirstSource, Inc.

Tile Shop Holdings, Inc.

Why is The Home Depot, Inc. ?

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

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%

High Institutional Holdings at 73.89%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

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 Report

Verdict Report

How 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.

-4.87%

0.32

23.56%

S&P 500

20.78%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.51%

EBIT Growth (5y)

2.71%

EBIT to Interest (avg)

13.10

Debt to EBITDA (avg)

1.49

Net Debt to Equity (avg)

6.22

Sales to Capital Employed (avg)

2.91

Tax Ratio

24.14%

Dividend Payout Ratio

64.67%

Pledged Shares

Institutional Holding

85.30%

ROCE (avg)

58.24%

ROE (avg)

1,618.01%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

43.71

EV to EBIT

29.35

EV to EBITDA

24.51

EV to Capital Employed

9.30

EV to Sales

3.72

PEG Ratio

Dividend Yield

123.89%

ROCE (Latest)

31.68%

ROE (Latest)

110.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 70.56%

DEBT-EQUITY RATIO (HY)

Lowest at 443.68 %

DIVIDEND PER SHARE(HY)

Highest at USD 26.63

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 18,032 MM

ROCE(HY)

Lowest at 128.38%

CASH AND EQV(HY)

Lowest at USD 2,990 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.33 times

Here's what is working for The Home Depot, Inc.

Debt-Equity Ratio

Lowest at 443.68 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at USD 26.63 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 70.56% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 1,081 MM

in the last five periods

MOJO 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 18,032 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Cash and Eqv

Lowest at USD 2,990 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 4.33 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio