NYSE: HD · Home Improvement Retail
Home Depot (The)
The Home Depot, based in Atlanta, is the world’s largest home improvement retailer based on net sales. At the end of fiscal 2025 (ended February 1, 2026) it operated 2,359 stores in the U.S., Canada and Mexico, plus e-commerce sites and distribution centers. Through SRS, acquired in 2024, and GMS, acquired by SRS in 2025 for $110 per share, it is also a leading specialty trade distributor of roofing, building, interior construction, landscape and pool products with over 1,250 locations. Net sales rose 3.2% to $164,683 million in fiscal 2025 (ended February 1, 2026), with $12,717 million from SRS businesses, while net earnings slipped to $14,156 million. In August 2026 CEO Edward Decker began a temporary medical leave, with two senior executives overseeing the Office of the CEO.
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: October 25, 2026 03:41 (SEC EDGAR) · Source 10-K filed: March 18, 2026
Built on10-K FY2026 · filed 2026-03-1810-Q (quarter ended 2026-08-02) · filed 2026-08-25Proxy statement (2026)
Next update expectedAfter FY2027’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- 4.5%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- 12.7%
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- +16.7 pts
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- 2.2x
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- 1.15x
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- 5 of 5
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 24.1x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 0.83
Higher than 21% of 372 non-financial companies
Average yearly growth over the years shown
Higher than 32% of 311 non-financial companies
Latest fiscal year (FY2026)
Higher than 83% of 311 non-financial companies
Return on capital above (or below) its estimated cost
Higher than 58% of 304 non-financial companies
Below 0 means more cash than debt
Higher than 19% of 349 non-financial companies
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; trailing 12 months to 2026-08-02
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$344.54close on 2026-11-04
Market cap$343.16B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 24.1x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- 26.8x
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- 16.2x
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- 3.7%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- 2.7%
At FY2026 year-end: 26.3x
Earnings: trailing 12 months to 2026-08-02
At FY2026 year-end: 29.1x
Book value at FY2026 year-end
At FY2026 year-end: 17.4x
EBITDA for FY2026
At FY2026 year-end: 3.4%
Free cash flow for FY2026
Dividends per share for FY2026
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Aug 2, 2026.
- Revenue$45.28B → $47.86B (vs. a year earlier)↑ +5.7%$45.28B → $47.86B (vs. a year earlier)
- Operating margin14.5% → 14.3% (vs. a year earlier)↓ −0.2 pts14.5% → 14.3% (vs. a year earlier)
- Net income$4.55B → $4.77B (vs. a year earlier)↑ +4.7%$4.55B → $4.77B (vs. a year earlier)
- Diluted EPS$4.58 → $4.79 (vs. a year earlier)↑ +4.6%$4.58 → $4.79 (vs. a year earlier)
- Cash$1.6B → $2.09B (vs. previous quarter-end)↑ +30.2%$1.6B → $2.09B (vs. previous quarter-end)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
From the earnings release of Aug 18, 2026.
Management outlook → Reaffirmed
Reaffirmed fiscal 2026 guidance. Source sentence
The Company reaffirms its fiscal 2026 guidance.
Key changes
Q2 comparable sales up 1.7%; U.S. up 1.3%. Source sentence
Comparable sales for the second quarter of fiscal 2026 increased 1.7%, and comparable sales in the U.S. increased 1.3%.
Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗
04
Company profileFrom SEC dataShow
- Legal name
- HOME DEPOT, INC.
- Headquarters
- ATLANTA, GA
- Incorporated in
- Delaware
- Fiscal year end
- 01/31
- Exchange & ticker
- NYSE: HD
- Industry
- Home Improvement Retail
- CIK
- 354950
- Website
- https://www.homedepot.com/ ↗
- IR page
- https://ir.homedepot.com/ ↗
Workforce (as of FY2026 year-end)
Employees
472,400
Source: Form 10-K (FY2026) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q3 FY2027
Quarter end: November 2026. In past years, Q3 results were released 16 days after quarter end (Nov 18, 2025; Nov 12, 2024; Nov 14, 2023). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around January 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 16–23 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q2 FY2027 | Aug 2, 2026 | Aug 18, 2026 (+16 days) | Aug 25, 2026 10-Q (+23 days) |
| Q1 FY2027 | May 3, 2026 | May 19, 2026 (+16 days) | May 27, 2026 10-Q (+24 days) |
| Q4 FY2026 | Feb 1, 2026 | Feb 24, 2026 (+23 days) | Mar 18, 2026 10-K (+45 days) |
| Q3 FY2026 | Nov 2, 2025 | Nov 18, 2025 (+16 days) | Nov 25, 2025 10-Q (+23 days) |
| Q2 FY2026 | Aug 3, 2025 | Aug 19, 2025 (+16 days) | Aug 26, 2025 10-Q (+23 days) |
| Q1 FY2026 | May 4, 2025 | May 20, 2025 (+16 days) | May 28, 2025 10-Q (+24 days) |
| Q4 FY2025 | Feb 2, 2025 | Feb 25, 2025 (+23 days) | Mar 21, 2025 10-K (+47 days) |
| Q3 FY2025 | Oct 27, 2024 | Nov 12, 2024 (+16 days) | Nov 19, 2024 10-Q (+23 days) |
| Q2 FY2025 | Jul 28, 2024 | Aug 13, 2024 (+16 days) | Aug 20, 2024 10-Q (+23 days) |
| Q1 FY2025 | Apr 28, 2024 | May 14, 2024 (+16 days) | May 21, 2024 10-Q (+23 days) |
| Q4 FY2024 | Jan 28, 2024 | Feb 20, 2024 (+23 days) | Mar 13, 2024 10-K (+45 days) |
| Q3 FY2024 | Oct 29, 2023 | Nov 14, 2023 (+16 days) | Nov 21, 2023 10-Q (+23 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
Primary segment
Building Materials
Building Materials, Electrical, Lumber, Millwork and Plumbing departments.
Primary segment
Décor
Appliances, Bath, Flooring, Kitchen & Blinds, Lighting and Paint departments.
Primary segment
Hardlines
Hardware, Indoor Garden, Outdoor Garden, Power and Storage & Organization departments.
Other
SRS (incl. GMS)
Roofing and building products, interior and construction products, landscape supplies and pool supplies for professional trades.
From the Form 10-K, FY2026, year ended 2026-02-01.
U.S., worldwide and country/regional share of flagship products/services
Only shares the company itself states (in its filings or press releases, sometimes citing a research firm) are shown. Scope and timing vary by figure — treat these as approximate.
Home improvement retail
Home improvement retail
U.S. share
—
Not disclosedWorldwide share
World’s largest
Company-disclosed“The Home Depot, Inc. is the world’s largest home improvement retailer based on net sales for fiscal 2025.”
07
Recent strategic focusSite analysis
Recent developments.
Fiscal 2025 results
Net sales $164,683M (+3.2%); operating income $20,890M; net earnings $14,156M; diluted EPS $14.23.
Source: Form 10-K (FY2026, year ended 2026-02-01)
Q2 fiscal 2026
Net sales $47,861M versus $45,277M; operating income $6,839M; net earnings $4,766M versus $4,551M.
Source: Form 10-Q (quarter ended 2026-08-02)
Leadership
CEO on temporary medical leave from August 2026; Ann-Marie Campbell oversees day-to-day operations and CFO Richard McPhail is interim principal executive officer.
Source: Form 8-K (2026-08-12) — Item 5.02 CEO temporary medical leave
GMS acquisition
SRS acquired GMS through a $110-per-share cash tender offer in fiscal 2025.
Source: Form 10-K (FY2026, year ended 2026-02-01)
Capex ÷ D&A (FY2026)
1.05x
Roughly matches depreciation — mostly maintenance/replacement
formulacapital expenditures ÷ depreciation & amortization
e.g.$3,679M ÷ $3,514M = 1.05x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
M&A spend (6-year total)
$32.77B
Latest year: $5.41B
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $2.46B in FY2021 to $3.68B in FY2026
- Capex
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-03-18
08
Key figures at a glanceFrom SEC data
FY2021–FY2026, 6 years.
Revenue (FY2026)
$164.68B
As reported in the 10-K
Revenue CAGR (5 years)
+4.5%
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($164,683M ÷ $132,110M) ^ (1÷5) − 1 = 4.5%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2026)
12.7%▼caution
-1.2pt vs. 5 years ago
formulaoperating income ÷ revenue × 100
e.g.$20,890M ÷ $164,683M × 100 = 12.7%
ROE (FY2026)
145.5%▲favorable
6-year average: 520.8%
As reported in the 10-K
P/B (FY2026 end)
29.12x
formulafiscal year-end closing price ÷ book value per share
e.g.$374.59 ÷ $12.86 = 29.12x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2026 end)
17.4x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($373,092M + $53,861M − $1,389M) ÷ ($20,890M + $3,514M) = 17.4x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ―
Revenue grew +4.5% a year over 5 years (modest growth)
From $132.11B in FY2021 to $164.68B in FY2026. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▼
Operating margin declined: 13.8% → 12.7%
How much operating profit is left per $100 of revenue. It moved -1.2 points over 5 years — pricing power, cost control, and product mix all show up here.
- ▼
Equity ratio is 12.2% (relatively heavy reliance on debt)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 6 of 6 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 520.8% over 6 years (latest: 145.5%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
- GMS Inc.
07 · what it does
Key activities
- Retail stores and e-commerce (Primary segment)
- Specialty trade distribution (SRS, including GMS)
- Installation services and tool rental
06 · what it draws on
Key resources
- About 472,400 associates (89% in the U.S.)
- 2,359 stores averaging about 104,000 sq. ft.
- Distribution and fulfillment network; SRS locations
02 · why customers buy
Value propositions
- Home improvement products and services for DIY and pro customers; Home Depot cites its culture and premium real estate footprint.
04 · how it keeps them
Customer relationships
- Pro programs and investments in the customer experience that drive higher satisfaction scores.
03 · how it reaches them
Channels
- About 2,360 stores and online (about 50% of U.S. online orders fulfilled through a store); SRS for pros.
01 · who it serves
Customer segments
- Do-it-yourself and do-it-for-me consumers
- Professional customers (contractors, roofers, landscapers, pool contractors)
09 · where money goes
Cost structure
FY2026, share of revenue ($164.68B)
- Cost of revenue66.7%
- Selling, general & administrative18.6%
- Other operating costs2.0%
Operating profit left: 12.7% of revenue. Depreciation & amortization (inside the costs above): $3.51B. Capital spending: $3.68B.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
- Building Materials $52,439M
- Décor $51,679M
- Hardlines $47,848M
- Other (SRS) $12,717M (fiscal 2025)
Value propositions, channels and customer relationships: Form 10-K (FY2026)
Sells home improvement products, building materials, garden, décor and MRO products to do-it-yourself and professional customers through stores and online, plus installation services, tool rental and, via SRS, specialty trade distribution to professional contractors.
01 what it draws on
Inputs & resources
- About 472,400 associates (89% in the U.S.)
- 2,359 stores averaging about 104,000 sq. ft.
- Distribution and fulfillment network; SRS locations
02 what it does
Activities
- Retail stores and e-commerce (Primary segment)
- Specialty trade distribution (SRS, including GMS)
- Installation services and tool rental
03 who it serves
Customers
- Do-it-yourself and do-it-for-me consumers
- Professional customers (contractors, roofers, landscapers, pool contractors)
04 how money comes in
How it earns
- Building Materials $52,439M
- Décor $51,679M
- Hardlines $47,848M
- Other (SRS) $12,717M (fiscal 2025)
How the business makes money
- U.S. net sales $152,170M; outside the U.S. $12,513M (fiscal 2025).
- Paid $9.2B of dividends in fiscal 2025 after raising the quarterly dividend to $2.30.
- Has paid a cash dividend every quarter since June 1987.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
Home Depot pays card fees and is exposed to trade policy changes.
Regulated prices & reimbursement
Card interchange fees
Pays interchange and other fees on card payments, which may increase.
Constrains the businessTouches: Inputs & resourcesSource: Form 10-K (FY2026)
Trade & export rules
Tariffs and trade rules
Countries may change trade policies in response to U.S. actions.
Constrains the businessTouches: Inputs & resourcesSource: Form 10-K (FY2026)
Revenue by segment (FY2026 (fiscal 2025, ended Feb 1, 2026))
Unit: $M — bar length = revenue, (%) = share of total company revenue
Building Materials
52,439 (32%)Décor
51,679 (31%)Hardlines
47,848 (29%)Other (SRS businesses)
12,717 (8%)
Source: Form 10-K (FY2026, year ended 2026-02-01) Primary segment net sales by major product line plus Other net sales from SRS non-reportable segments; total $164,683M.
10
Where it earnsSite analysis
Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.
Largest market (FY2026 (fiscal 2025, ended Feb 1, 2026))
United States — 92% of revenue
Revenue by country / region (FY2026 (fiscal 2025, ended Feb 1, 2026))
Unit: $M — bar length = revenue, (%) = share of total company revenue
United States
152,170 (92%)Outside the U.S.
12,513 (8%)
Source: Form 10-K (FY2026, year ended 2026-02-01) Net sales by geography.
11
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
12
Alliances & capital tiesSite analysisShow
Equity stakes, joint ventures, and strategic partnerships disclosed across the 10-K, 8-Ks, and proxy statement.
Pending or recent acquisition
GMS Inc.
Acquired by SRS through a $110-per-share cash tender offer in fiscal 2025.
13
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
DIY and professional customers in the U.S., Canada and Mexico.
Named by the company
No single customer is named as material.
Suppliers
Thousands of product vendors.
Named by the company
No single supplier is named as material.
14
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
Home Depot competes with home improvement and specialty stores, showrooms, discount and paint stores, digital retailers, warehouse clubs, MRO and wholesale distributors and service providers; the 10-K names no specific competitors.
Competitors named in the 10-K
The 10-K names competitor categories only.
Peer group the company chose
Retail peer group (10 companies), from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Retail peer group used for executive pay benchmarking, unchanged from fiscal 2024.
- Amazonsite ↗
- Ross Storessite ↗
- AutoZonesite ↗
- Targetsite ↗
- Costcosite ↗
- Krogersite ↗
- Lowe'ssite ↗
- TJX Companiessite ↗
- O'Reilly Automotivesite ↗
- Walmartsite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
15
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-03-18
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-03-18
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-03-18
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-03-18
| Line item | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ | FY202610-K on EDGAR ↗ |
|---|---|---|---|---|---|---|
| Income statement ($M) | ||||||
| Revenue | 132,110 | 151,157 | 157,403 | 152,669 | 159,514 | 164,683 |
| Operating income | 18,278 | 23,040 | 24,039 | 21,689 | 21,526 | 20,890 |
| Pretax income | 16,978 | 21,737 | 22,477 | 19,924 | 19,406 | 18,602 |
| Net income (attributable) | 12,866 | 16,433 | 17,105 | 15,143 | 14,806 | 14,156 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 14.4% | 4.1% | -3.0% | 4.5% | 3.2% |
| Operating margincalcoperating income ÷ revenue × 100 | 13.8% | 15.2% | 15.3% | 14.2% | 13.5% | 12.7% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 9.7% | 10.9% | 10.9% | 9.9% | 9.3% | 8.6% |
| Balance sheet ($M) | ||||||
| Total assets | 70,581 | 71,876 | 76,445 | 76,530 | 96,119 | 105,095 |
| Total equity | 3,299 | -1,696 | 1,562 | 1,044 | 6,640 | 12,813 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 37,238 | 39,051 | 43,193 | 44,111 | 51,681 | 53,861 |
| Equity ratio | 4.7% | -2.4% | 2.0% | 1.4% | 6.9% | 12.2% |
| ROE | 390.0% | — | — | 1162.2% | 385.4% | 145.5% |
| Cash flow ($M) | ||||||
| Operating CF | 18,839 | 16,571 | 14,615 | 21,172 | 19,810 | 16,325 |
| Investing CF | -10,170 | -2,969 | -3,140 | -4,729 | -21,031 | -8,980 |
| Financing CF | -2,983 | -19,120 | -10,993 | -15,443 | -694 | -7,714 |
| Free cash flowcalccash flow from operations − capital expenditures | 16,376 | 14,005 | 11,496 | 17,946 | 16,325 | 12,646 |
| Cash and equivalents | 7,895 | 2,343 | 2,757 | 3,760 | 1,659 | 1,389 |
| Per share & other | ||||||
| EPS ($) | 11.94 | 15.53 | 16.69 | 15.11 | 14.91 | 14.23 |
| BVPS ($) | 3.06 | -1.64 | 1.54 | 1.05 | 6.68 | 12.86 |
| Dividend per share ($) | 6.00 | 6.60 | 7.60 | 8.36 | 9.00 | 9.20 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | 50.3% | 42.5% | 45.5% | 55.3% | 60.4% | 64.7% |
| P/E (x) | 22.7 | 23.6 | 19.0 | 23.5 | 27.6 | 26.3 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 15.4 | 16.1 | 13.5 | 15.9 | 18.5 | 17.4 |
| P/B (x)calcfiscal year-end closing price ÷ book value per share | 88.41 | — | 205.99 | 337.60 | 61.67 | 29.12 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Operating income | Net income | Diluted EPS |
|---|---|---|---|---|
| 2026-08-02 | $47.86B+5.7% | $6.84B+4.3% | $4.77B+4.7% | $4.79 |
| 2026-05-03 | $41.77B+4.8% | $4.98B-3.0% | $3.29B-4.2% | $3.30 |
| 2026-02-01 † | $38.2B-3.8% | $3.85B-14.4% | $2.57B-14.2% | — |
| 2025-11-02 | $41.35B+2.8% | $5.35B-1.2% | $3.6B-1.3% | $3.62 |
| 2025-08-03 | $45.28B | $6.56B | $4.55B | $4.58 |
| 2025-05-04 | $39.86B | $5.13B | $3.43B | $3.45 |
| 2025-02-02 † | $39.7B | $4.5B | $3B | — |
| 2024-10-27 | $40.22B | $5.42B | $3.65B | $3.67 |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
16
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2026)
25.4%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$20,890M × (1 − 24%) ÷ $62,498M × 100 = 25.4%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
8.74%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $373.09B ÷ ($373.09B + $53.86B) = 87.4%
e.g.Debt weight: $53.86B ÷ ($373.09B + $53.86B) = 12.6%
e.g.WACC: 9.5% × 87.4% + 4.5% × (1 − 24%) × 12.6% = 8.74%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 7.2%–10.6% and ROIC − WACC runs +14.8 to +18.2 points. The sign holds across this range. This describes the latest year and does not predict future value creation.
WACC 8.74% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4.95% (10-year Treasury, 2026-11-03)
- β
- 0.83 (price-derived adjusted beta)
- Equity risk premium
- 5.5%
- Cost of equity
- 9.52%
- Cost of debt
- 4.48%
- Tax rate
- 24% (effective rate, FY2024–FY2026)
- Capital structure (equity : debt)
- 87% : 13%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 8.74%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).
Initial β: 0.83 (price-derived adjusted beta. Raw β 0.75, R² 0.21, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 0.747 + 0.33 = 0.831
termsβ (beta)
Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.5.0% + 0.83 × 5.5% = 9.5%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulafiscal year-end closing price × shares outstanding (= market cap)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
17
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (price on 2026-11-04)
5.5%
Perpetual FCF growth: g = r − FCF ÷ EV = 8.7% − 3.2%
Past FCF growth (FY2021–FY2026)
-5.0%
Compound annual rate, 5 years
Past revenue growth (FY2021–FY2026)
+4.5%
Compound annual rate, 5 years
Inputs (FY2026): free cash flow $12.65B (operating CF − capex); enterprise value $395.63B = market cap $343.16B (latest close, 2026-11-04) + debt $53.86B − cash and short-term investments $1.39B; r = WACC of 8.7% using this page’s default assumptions (β 0.83, risk-free 5.0%, market premium 5.5%).
Three WACC scenarios
The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$395.19B
FCF $12.65B ÷ (8.7% − 5.5%)
Theoretical ÷ actual enterprise value
1.00x
Below 1x: these assumptions value the business below the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 6.7% | 7.7% | 8.7% | 9.7% | 10.7% |
|---|---|---|---|---|---|
| 0% | 0.48x | 0.42x | 0.37x | 0.33x | 0.30x |
| 2% | 0.68x | 0.56x | 0.48x | 0.42x | 0.37x |
| 4% | 1.18x | 0.86x | 0.68x | 0.56x | 0.48x |
| 6% | 4.57x | 1.88x | 1.18x | 0.86x | 0.68x |
| 8% | — | — | 4.57x | 1.88x | 1.18x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.
18
Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.20x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -2.2%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 112%
Most profit comes from core operations.
- ✓
Days sales outstanding: 8 → 12 days
No major slowdown in collecting on sales.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-03-18
Profit bridge (FY2026)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-03-18
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
- Days inventory outstanding
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$16,325M ÷ $14,156M = 1.15x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$20,890M ÷ $18,602M × 100 = 112%
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
e.g.($4,903M + $5,597M) ÷ 2 ÷ $164,683M × 365 = 12 days
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
e.g.($23,451M + $25,817M) ÷ 2 ÷ $109,818M × 365 = 82 days
termsInventory · Cost of revenue (COGS)
19
Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 75.2%
- Directors & officers (shares)
- 0.1%
- Everyone else (est.)
- 24.7%
- Directors & officers (voting power)
- 0.1%
- Institutional-ownership rank
- 352 of 416
- Beta (adjusted)
- 0.83
individuals and other non-13F holders
no separate voting figure; shown as shares
1 = most institutional; 84% of covered companies have more
above 1 = swings more than the market
- 750.1M shares reported by 4,097 13F filers ÷ 997.1M shares outstanding on 2026-05-19. Option positions are excluded.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table; includes shares they can acquire within 60 days.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-04-07 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-05-19)
20
Strengths & weaknessesSite analysis
Strengths
1. Market leader
The world’s largest home improvement retailer based on net sales.
Evidence: Form 10-K (FY2026, year ended 2026-02-01)
2. Strong cash flow
Operating cash flow of $16,325M in fiscal 2025 funded $9.2B of dividends and $3.7B of capex.
Evidence: Form 10-K (FY2026, year ended 2026-02-01)
3. Pro distribution growth
SRS and GMS contributed $12,717M of fiscal 2025 net sales.
Evidence: Form 10-K (FY2026, year ended 2026-02-01)
Weaknesses
1. Flat Primary segment
Primary segment net sales fell to $151,966M from $153,108M.
Evidence: Form 10-K (FY2026, year ended 2026-02-01)
2. Rising debt
Interest-bearing debt rose to about $53.9B after the SRS and GMS acquisitions.
Evidence: Form 10-K (FY2026, year ended 2026-02-01)
3. Earnings drift
Net earnings fell from $17,105M (fiscal 2022) to $14,156M (fiscal 2025).
Evidence: Form 10-K (FY2026, year ended 2026-02-01)
21
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2026)
26.3x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2026)
2.46%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2026)
65%
Dividends per share ÷ diluted EPS
FCF yield (FY2026)
3.4%
(Operating CF − capex) ÷ market cap
1. Dividend record
Cash dividend paid every quarter since 1987; $9.20 per share in fiscal 2025.
- What has to hold
- Cash flow keeps growing.
- The other side
- Higher debt after acquisitions.
Evidence: Form 10-K (FY2026, year ended 2026-02-01)
2. Pro market expansion
SRS and GMS widen the addressable professional market.
- What has to hold
- Integration succeeds.
- The other side
- Lower margins in distribution.
Evidence: Form 10-K (FY2026, year ended 2026-02-01)
Fiscal years end on the Sunday nearest January 31 and are labeled here by the calendar year in which they end (FY2026 = fiscal 2025). Equity is small relative to assets because of buybacks.
22
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2026)
Cash & short-term investments ÷ debt due within a year
0.1x
$1.39B vs. $9.43B
Interest coverage (operating income ÷ interest expense)
8.7x
$20.89B vs. $2.41B
Free cash flow ÷ dividends paid
1.4x
$12.65B vs. $9.15B (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | -3.0% in FY2024 ($157.4B → $152.67B) | Yes, by FY2025 |
| Operating income | -9.8% in FY2024 ($24.04B → $21.69B) | Not yet, as of FY2026 |
Covers only the 6 fiscal years on record (FY2021–FY2026), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Profit through the cycle
Net earnings stayed above $12.8B in every year shown.
Source: Form 10-K (FY2026, year ended 2026-02-01)
23
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
Home Depot reports no material pending litigation; its EPA lead-safe practices consent decree was terminated in fiscal 2025 after about $1.7 million of stipulated penalties.
0 open matters · 1 settled or closed
EPA lead-safe work practices consent decree
Closed, no actionEnvironmentalU.S. DOJ, EPA and three states v. The Home Depot
The April 2021 civil consent decree with the DOJ, EPA and Utah, Massachusetts and Rhode Island required changes to lead-safe practices in installation services. Final stipulated penalties were paid in Q2 fiscal 2025 and the decree was terminated in Q4 fiscal 2025; penalties totaled about $1.7M, recovered from third-party installers.
- Amounts
- About $1.7 million in stipulated penalties
Source: Form 10-K (FY2026, year ended 2026-02-01) — Item 3, Legal Proceedings
Company statement: Other proceedings are described as ordinary-course and not expected to be material.
Based on Form 10-K (FY2026, year ended 2026-02-01) — Item 3, Legal Proceedings, reviewed 2026-10-25. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
24
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Demand & macro
Housing and consumer demand
- Company disclosure (summarized from the 10-K)
- Sales depend on home improvement spending, housing turnover and interest rates.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact High / Likelihood High
- 2Competition & technology shift
Broad competition
- Company disclosure (summarized from the 10-K)
- Competes with home improvement chains, specialty stores, digital retailers, warehouse clubs, MRO distributors and others.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 3M&A & integration
Acquisition integration
- Company disclosure (summarized from the 10-K)
- Integrating SRS and GMS may not deliver expected results.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
- 4Governance & key people
CEO absence
- Company disclosure (summarized from the 10-K)
- CEO Edward Decker began a temporary medical leave in August 2026.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
- 5Law & regulation
Installation services compliance
- Company disclosure (summarized from the 10-K)
- Third-party installer practices led to an EPA consent decree in 2021.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Low / Likelihood Med
25
What changed in the risk factorsFrom SEC data
Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.
New or substantially reworded (2)
Natural disasters, unseasonable, unexpected or extreme weather conditions, as well as other catastrophic or uncharacteristic events, could impact our operations and financial results, seasonal events such as storms may impact sales compared to prior periods, and the potential impacts of catastrophic or uncharacteristic events may lead to changes in demand or availability of products or cause business interruptions.
Demand for certain of our products has historically been influenced by the occurrence of seasonal events, such as storms. Read more
The impact of these events on our sales varies depending on their location, frequency and magnitude. Sustained periods without such events can lead, and in the past have led, to lower sales compared to prior periods.
Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Mar 18, 2026 ↗ with the 10-K filed Mar 21, 2025 ↗.
26
What to watch going forwardSite analysis
- Return of CEO Edward Decker from medical leave.
- Comparable sales trend in the Primary segment.
- SRS/GMS growth and integration.
- Debt reduction after acquisitions.
27
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Other sources referenced in the analysis
Last updated
Analysis last edited: November 6, 2026 · Financial data fetched: October 25, 2026 03:41 (SEC EDGAR) · Source 10-K filed: March 18, 2026
Built on10-K FY2026 · filed 2026-03-18Proxy statement (2026)
Next update expectedAfter FY2027’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Home Depot (The)’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.