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Home Depot (HD) Value Investing Data

🇺🇸 USHD

As of 2026-07-13 · Last updated: 2026-07-14 · Source: SEC EDGAR (XBRL companyfacts, CIK 0000354950), stockanalysis (price, statistics, financial statements, ratios, consensus), Company IR · Prices & financials updated periodically (not real-time) · Information tool (not investment advice)

Business Summary · Key Value Metrics
The world's largest home-improvement retailer, selling building materials, tools, decor, and garden supplies across the U.S., Canada, and Mexico. It targets both DIY consumers and professional contractors (Pro), and also offers installation services and tool rental. TTM revenue is $166.6B with a 12.4% operating margin.
Current Price
$339.36
-1.15% -$3.94 · Close 2026-07-13
Analyst Consensus Target (external reference)
$370.34
Avg. of 36 external analysts · stockanalysis (36-analyst consensus, Buy)
P/E (TTM)
24.4x
TTM
Operating Margin
12.4%
TTM
Net Margin
8.4%
TTM
ROA
12.5%
TTM · ROA (equity distorted, no ROE)
Dividend Yield
2.75%
Rising steadily
Market Cap
$338.4B
As of 2026-07-13

Economic Moat · Key Business Segments

Home Depot is the world's largest home-improvement retailer, operating 2,000+ stores across the U.S., Canada, and Mexico; its TTM revenue of $166.6B is about 1.9x that of second-place Lowe's (TTM $88.4B). It has built dedicated supply-chain and delivery infrastructure for Pro (professional contractor) customers, who make up more than half of sales (source: company IR · stockanalysis).

Dominant scale2,000+ stores across the U.S., Canada, and Mexico and $166.6B in TTM revenue make it #1 in home improvement, about 1.9x second-place Lowe's.
Pro (contractor) customer baseDedicated bulk-purchase programs and delivery networks for Pro customers, who are more than half of sales, drive high loyalty.
Supply chain and logisticsIn-house distribution centers and a last-mile delivery network serve integrated omnichannel (online and in-store) orders.
Economies of scaleOverwhelming purchasing scale gives it pricing power over suppliers, sustaining operating margins in the 12% range.

10-Year Financial Trends

Revenue grew at a 9-year CAGR of +6.4%, from $94.6B in FY2016 to $164.7B in FY2025 (fiscal year ends late Jan). Diluted EPS (+9.2%) outgrew net income (+6.6%), driven by large buybacks more than growth: diluted shares fell ~19% over nine years, from ~1.23B in FY2016 to ~1.00B in FY2025. Sustained buybacks eroded equity, pushing it near negative some years (e.g., -$1.7B at FY2021-end), so ROE and P/B are omitted as distorted (see ROA above). Meanwhile operating margin slipped from 15.3% in FY2022 to 12.7% in FY2025 as recent growth slowed (source: SEC EDGAR 10-K XBRL · stockanalysis).

10-Year Growth

Revenue$165B · CAGR +6.4%
$165B$0.0B20162025
Operating Income$20.9B · CAGR +5.0%
$24.0B$0.0B20162025
EPS$14.23 · CAGR +9.2%
$16.69$0.0020162025

10-Year Valuation

P/E (year-end)26.3x · avg 24.0x
28.1x18.5x20212025
ROA13.5% · avg 19.7%
25.9%12.9%20162025
Operating Margin12.7% · avg 14.2%
15.4%12.6%20162025
📊 Annual Data Table (HD) — expand/collapse
YearRevenue (B$)Op. Income (B$)EPS ($)P/E (x)ROA (%)Op. Margin (%)
201694.59513.4276.4518.514.2
2017100.90414.6817.2919.414.6
2018108.20315.539.7325.314.4
2019110.22515.84310.2521.914.4
2020132.1118.27811.9418.213.8
2021151.15723.0415.5323.622.915.2
2022157.40324.03916.6918.9722.415.3
2023152.66921.68915.1123.5119.814.2
2024159.51421.52614.9127.6315.413.5
2025164.68320.8914.2326.3213.512.7

Recent Quarterly Operating Income

Quarterly operating income YoY growth:

2021 +14%2022 +4%2023 -3%2024 +4%2025 +3%

9-Year CAGR: Revenue +6.4% · Operating Income +5.0% · Net Income +6.6% · EPS +9.2%

Sources: SEC EDGAR XBRL (companyfacts, CIK 0000354950) · stockanalysis · company IR. Home Depot's fiscal year ends in late Jan/early Feb; EDGAR fiscal-year labels (e.g., FY2025 = 2025-02-03 to 2026-02-01) are aligned to stockanalysis labels. Revenue, operating income, EPS, and operating margin span 10 years (FY2016-FY2025); P/E covers the last 5 years (FY2021-FY2025, stockanalysis) due to data limits. Because sustained buybacks pushed equity near negative in several years, the ROE and P/B series are replaced by ROA owing to equity distortion.

Mega-Cap Value Metric Comparison

Home Depot's revenue (TTM $166.6B) is about 1.9x Lowe's (TTM $88.4B), and its operating margin (12.4% vs 11.6%) is narrowly higher. However, its P/E (24.4x vs 17.9x) is above Lowe's, earning it a valuation premium. Both companies share a quirk: years of buybacks have left equity small or negative, producing extreme ROE and P/B figures (source: stockanalysis).

Metric★ HDLOW
Operating Margin12.4%11.6%
P/E (TTM)24.417.9
Dividend Yield2.75%2.29%
Market Cap$338.4B$117.5B

P/E, operating margin, dividend yield, and market cap = TTM · source: stockanalysis, 2026-07-13.

Key Risk Factors (from 10-K)

Housing market and rate sensitivity If high rates slow home sales and remodeling demand, revenue takes a direct hit — one factor behind the margin softening of the past two to three years.Source: Company 10-K Risk Factors
Margin downtrend Operating margin fell from 15.3% in FY2022 to 12.7% in FY2025, pressured by higher costs and wages and by expanded investment in the Pro segment.Source: SEC EDGAR
Buyback-driven equity erosion Years of buybacks have pushed equity near negative in several fiscal years (e.g., -$1.7B in FY2021). This is a source of EPS growth and the flip side of rising leverage; it distorts ROE and P/B, limiting their usefulness.Source: SEC EDGAR XBRL · stockanalysis
Intensifying competition Brick-and-mortar rivals like Lowe's and expanding online retail such as Amazon create price-competition pressure.Source: Company 10-K Risk Factors
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Value Investing FAQ (HD)

Q. What are Home Depot's (HD) key value-investing metrics?P/E (TTM) 24.4x, operating margin 12.4%, net margin 8.4%, ROA 12.5%, dividend yield 2.75%, and a 9-year revenue CAGR of +6.4% (sources: stockanalysis · SEC EDGAR, as of 2026-07-13). Because buybacks have left equity very small, ROE and P/B are of limited use.
Q. How is Home Depot as a dividend stock?It's a dividend-growth stock that has raised its payout consistently, currently yielding about 2.75% with a payout ratio near 66%. That said, it does not hold an ultra-long streak of consecutive increases like a Dividend King or Aristocrat. (This is informational, not a buy or sell recommendation.)
Q. Why did EPS grow faster than net income, and why aren't ROE and P/B shown?Home Depot has run large buybacks for years, shrinking diluted shares by about 19% over nine years (~1.23B to ~1.00B), so EPS (+9.2%) grew faster than net income (+6.6%). For the same reason, book equity became very small and at times negative, distorting ROE and P/B to extremes, so this report uses ROA (12.5%), profitability against total assets, instead. This reflects aggressive return of profits to shareholders, not financial weakness.
Q. Who are the main competitors?Its direct home-improvement retail competitor is Lowe's (LOW). Home Depot leads Lowe's on revenue and operating margin but trades at a higher P/E.

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