Morningstar Rating
Stock XNYS Rating as of
$360.07 +4.41(1.24%)
View Full ChartAs of Delayed Price Closed
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Company Report
Company Report
Home Depot Earnings: Consumer Apprehension Crimps Sales, but Long-Term Algorithm Intact
Jaime M Katz
Wide-moat Home Depot echoed the sentiment of other consumer firms in its second quarter, noting weaker spending due to economic uncertainty. This surfaced in second-quarter same-store sales declines of 3.3%, 150 basis points lower than our estimate, and an organic sales downtick of 2.4% (excluding recently acquired SRS). While comp transactions fell 2.2% and comp average ticket declined 1.3%, consumers are still seeking out innovative products, displaying the strength of the brand. Rather, we think the mix of transactions continued to weigh on metrics, shifting less favorably away from big-ticket sales (over $1,000), which were down 5.8% in the period.
HD is trading within a range we consider fairly valued.
Price
$355.66
Fair Value
$412.00
Uncertainty
Low
- 1-Star Price
- $471.10
- 5-Star Price
- $929.00
- Economic Moat
- Rgp
- Capital Allocation
- Bflttlkcv
Bulls Say, Bears Say
Bulls Say, Bears Say
Bulls
Home Depot's continued investments in supply chain and merchandising should improve productivity and support its market leadership position in the home improvement market.
Bears
Weak consumer spending, higher interest rates, or an economic downturn could hinder sales for home improvement projects and affect Home Depot's growth.
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News
News
- The Home Depot Declares Second Quarter Dividend of $2.25
- Why the bull market in stocks can continue despite a brutal start to August
- Home Depot's stock bounces as home improvement demand may have just bottomed
- The Home Depot Announces Second Quarter Fiscal 2024 Results; Updates Fiscal 2024 Guidance
- Why U.S. stocks face a bumpy road to recovery with inflation and earnings updates on the horizon
- Earnings Watch: Walmart reports this week. Its 'resilience' will be tested amid signs of consumer slowdown, analyst says
- The Home Depot to Host Second Quarter Earnings Conference Call on August 13
- A Milestone of Care: The Home Depot’s Legacy of Support for Associates
Trading Information
Trading Information
- Previous Close Price
- $355.66
- Day Range
$358.14–365.41
- 52-Week Range
$274.26–396.87
- Bid/Ask
- $360.10/$362.50
- Market Cap
- $357.05 Bil
- Volume/Avg
- 3.6 Mil/3.5 Mil
Key Statistics
Key Statistics
- Price/Earnings (Normalized)
- 24.04
- Price/Sales
- 2.35
- Dividend Yield (Trailing)
- 2.41%
- Dividend Yield (Forward)
- 2.50%
- Total Yield
- 3.33%
Company Profile
Company Profile
Home Depot is the world's largest home improvement specialty retailer, operating more than 2,300 warehouse-format stores offering more than 30,000 products in store and 1 million products online in the US, Canada, and Mexico. Its stores offer numerous building materials, home improvement products, lawn and garden products, and decor products and provide various services, including home improvement installation services and tool and equipment rentals. The acquisition of Interline Brands in 2015 allowed Home Depot to enter the MRO business, which has been expanded through the tie-up with HD Supply (2020). The additions of the Company Store brought textiles to the lineup, and Redi Carpet added multifamily flooring, while the recent tie-up with SRS helps grow professional demand.
- Sector
- Consumer Cyclical
- Industry
- Home Improvement Retail
- Stock Style Box
- Large Core
- Total Number of Employees
- 471,600
- Website
- https://www.homedepot.com
Competitors
Competitors
- Tractor Supply Co TSCO
- Target Corp TGT
- Lowe's Companies Inc LOW
Valuation
Valuation
| Metric | HD | TSCO | TGT |
|---|---|---|---|
Price/Earnings (Normalized) | 24.04 | 26.32 | 15.90 |
Price/Book Value | 80.78 | 12.26 | 4.74 |
Price/Sales | 2.35 | 1.94 | 0.62 |
Price/Cash Flow | 19.15 | 19.09 | 8.63 |
Price/Earnings
HD
TSCO
TGT
Financial Strength
Financial Strength
| Metric | HD | TSCO | TGT |
|---|---|---|---|
Quick Ratio | 0.34 | 0.16 | 0.18 |
Current Ratio | 1.34 | 1.43 | 0.86 |
Interest Coverage | 10.86 | 33.33 | 12.52 |
Quick Ratio
HD
TSCO
TGT
Profitability
Profitability
| Metric | HD | TSCO | TGT |
|---|---|---|---|
Return on Assets (Normalized) | 19.73% | 12.04% | 7.99% |
Return on Equity (Normalized) | 1,265.26% | 52.26% | 34.30% |
Return on Invested Capital (Normalized) | 32.05% | 16.20% | 14.78% |
Return on Assets
HD
TSCO
TGT
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Home Improvement Retail Industry Comparables
Home Improvement Retail Industry Comparables
| 1-Day Chart | Name | Price | Morningstar Rating for Stocks | Capital Allocation | Economic Moat | Market Cap |
|---|---|---|---|---|---|---|
| Lowe's Companies Inc LOW | Cgxzdqksv | Ldlq | $136.8 Bil | |||
| Wesfarmers Ltd ADR WFAFY | — | Mccc | $56.0 Bil | |||
| Wesfarmers Ltd WFAFF | — | Ddqk | $56.0 Bil | |||
| FND | — | Jlnmb | $11.3 Bil | |||
| Kingfisher PLC KGFHF | — | Wxgj | $6.5 Bil | |||
| Kingfisher PLC ADR KGFHY | Hcfnxbzw | Pxrgj | $6.5 Bil | |||
| Home Product Center PCL Shs Foreign registered HPCRF | — | Rdhvnf | $3.0 Bil | |||
| Arhaus Inc Class A ARHS | — | Lspkjbn | $1.7 Bil | |||
| Fiskars Oyj FKRAF | — | Jtrlf | $1.5 Bil |
