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Home Depot (HD) Stock Analysis

This is a peer-relative look at Home Depot (HD): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Consumer Discretionary Distribution & Retail peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Home Depot (HD)
Profile ItemHD
NameThe Home Depot, Inc.
Country/RegionUnited States
GICS SectorConsumer Discretionary
GICS Industry GroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
GICS Sub-IndustryHome Improvement Retail
Market Capitalization319.09 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateSeptember 22, 1981
Security TypeCommon Stock

Price Performance

Cumulative Growth

HD
GSPC
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Home Depot (HD) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Home Depot (HD) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Home Depot (HD) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Home Depot (HD) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
MetricCurrent stock: HDIndustry group median
Total Return (1Y)-14.58%-4.30%
Total Return (3Y, Annualized)6.61%9.57%
Total Return (5Y, Annualized)-0.16%-2.41%

Risk Profile

Drawdown History

HD
GSPC
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Home Depot (HD) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Home Depot (HD) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Home Depot (HD) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
MetricCurrent stock: HDIndustry group median
Volatility (1Y, Annualized)26.65%46.90%
Beta (5Y)0.951.14
Max Drawdown (5Y)-34.73%-68.83%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. HD is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Home Depot (HD) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
MetricCurrent stock: HDIndustry group median
Sharpe Ratio (1Y)-0.71-0.20
Sortino Ratio (1Y)-1.04-0.29

Profitability

ROE (TTM)

Home Depot (HD) posts ROE of 104.30%, above the industry benchmark range. Equity is being turned into profit at an exceptional rate, but very high ROE should still be checked against leverage, buybacks, and the size of the equity base.

HD

Consumer Discretionary Distribution & Retail industry group

104.30%

Group distribution
HD
104.30%
Max
62.17%
Q3
30.47%
Median
14.86%
Q1
6.52%
Min
-20.00%
Largest peers
HD
104.30%
TJX
62.17%
AMZN
30.56%
MELI
27.50%
PDD
22.75%
BABA
6.36%
LOW
--
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Where Home Depot (HD) stands on ROE within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Home Depot (HD) keeps 8.41% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

HD

Consumer Discretionary Distribution & Retail industry group

8.41%

Group distribution
Max
18.57%
HD
8.41%
Q3
8.30%
Median
3.37%
Q1
1.06%
Min
-9.41%
Largest peers
PDD
20.43%
AMZN
17.44%
TJX
9.73%
HD
8.41%
LOW
7.35%
BABA
7.04%
MELI
5.30%
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Where Home Depot (HD) stands on net margin within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Home Depot (HD) turns 12.86% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

HD

Consumer Discretionary Distribution & Retail industry group

12.86%

Group distribution
Max
21.57%
HD
12.86%
Q3
11.49%
Median
6.15%
Q1
2.69%
Min
-6.28%
Largest peers
PDD
24.71%
AMZN
13.69%
LOW
13.37%
HD
12.86%
TJX
10.91%
BABA
7.30%
MELI
6.72%
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Where Home Depot (HD) stands on operating margin within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Home Depot (HD) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
MetricCurrent stock: HDIndustry group median
ROE (TTM)104.30%14.86%
ROA (TTM)12.14%5.32%
Net Margin (TTM)8.41%3.37%
Operating Margin (TTM)12.86%6.15%
Gross Margin (TTM)32.80%38.81%

Growth

Revenue Growth

Home Depot (HD) grew revenue 3.24%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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Home Depot (HD): Revenue Growth across different time periods, set against Consumer Discretionary Distribution & Retail industry-group medians.

EPS Growth

Home Depot (HD) grew earnings per share -4.56%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

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Home Depot (HD): EPS Growth across different time periods, set against Consumer Discretionary Distribution & Retail industry-group medians.

Growth Metrics

Home Depot (HD) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
MetricCurrent stock: HDIndustry group median
Revenue Growth (YoY)3.24%5.18%
Revenue Growth (3Y CAGR)1.52%3.32%
EPS Growth (YoY)-4.56%0.00%
EPS Growth (3Y CAGR)-5.18%-5.08%

Financial Strength

Current Ratio (MRQ)

Home Depot (HD) has current ratio of 1.08, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

HD

Consumer Discretionary Distribution & Retail industry group

1.08

Group distribution
Max
2.62
Q3
1.79
Median
1.36
HD
1.08
Q1
1.02
Min
0.49
Largest peers
PDD
2.62
BABA
1.36
TJX
1.15
MELI
1.12
LOW
1.11
HD
1.08
AMZN
1.03
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Where Home Depot (HD) stands on current ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Home Depot (HD) has debt-to-equity ratio of 3.80, in the higher-leverage quartile for its industry. The heavier reliance on borrowing can make earnings, rates, or refinancing conditions matter more.

HD

Consumer Discretionary Distribution & Retail industry group

3.80

Group distribution
Max
3.93
HD
3.80
Q3
2.05
Median
1.25
Q1
0.71
Min
0.01
Largest peers
HD
3.80
MELI
1.69
TJX
1.34
AMZN
0.46
BABA
0.24
PDD
0.01
LOW
--
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Where Home Depot (HD) stands on debt-to-equity ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Home Depot (HD) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
MetricCurrent stock: HDIndustry group median
Current Ratio (MRQ)1.081.36
Debt / Equity (MRQ)3.801.25
Net Debt / EBITDA2.482.62

Dividends

Dividend Yield (TTM)

Home Depot (HD) has dividend yield of 1.41%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

HD

Consumer Discretionary Distribution & Retail industry group

1.41%

Group distribution
Max
5.34%
Q3
2.62%
HD
1.41%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
BABA
7.11%
LOW
2.37%
HD
1.41%
TJX
1.23%
AMZN
0.00%
PDD
0.00%
MELI
0.00%
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Where Home Depot (HD) stands on dividend yield within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Home Depot (HD) has payout ratio of 64.80%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

HD

Consumer Discretionary Distribution & Retail industry group

64.80%

Group distribution
Max
72.73%
HD
64.80%
Q3
31.36%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
HD
64.80%
LOW
41.00%
TJX
32.50%
BABA
25.44%
AMZN
0.00%
PDD
0.00%
MELI
0.00%
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Where Home Depot (HD) stands on payout ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Home Depot (HD) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
MetricCurrent stock: HDIndustry group median
Dividend Yield (TTM)1.41%0.00%
Dividend Payout Ratio (TTM)64.80%0.00%

Valuation

P/E Ratio (TTM)

Home Depot (HD) trades at P/E ratio of 21.45, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

HD

Consumer Discretionary Distribution & Retail industry group

21.45

Group distribution
Max
39.05
Q3
25.20
HD
21.45
Median
18.67
Q1
12.65
Min
4.22
Largest peers
MELI
49.23
TJX
26.86
BABA
24.13
HD
21.45
AMZN
19.95
LOW
16.79
PDD
8.89
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Where Home Depot (HD) stands on P/E ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Home Depot (HD) trades at 1.89 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

HD

Consumer Discretionary Distribution & Retail industry group

1.89

Group distribution
Max
3.92
HD
1.89
Q3
1.79
Median
0.69
Q1
0.27
Min
0.03
Largest peers
AMZN
3.45
MELI
2.61
TJX
2.56
HD
1.89
LOW
1.23
PDD
0.25
BABA
0.24
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Where Home Depot (HD) stands on P/S ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Home Depot (HD) trades at 19.21 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.

HD

Consumer Discretionary Distribution & Retail industry group

19.21

Group distribution
HD
19.21
Max
10.32
Q3
4.92
Median
1.89
Q1
1.03
Min
-4.01
Largest peers
HD
19.21
TJX
15.00
MELI
11.71
AMZN
4.85
PDD
1.66
BABA
1.48
LOW
-14.99
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Where Home Depot (HD) stands on P/B ratio within its Consumer Discretionary Distribution & Retail peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Home Depot (HD) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
MetricCurrent stock: HDIndustry group median
P/E Ratio (TTM)21.4518.67
P/S Ratio (TTM)1.890.69
P/B Ratio (MRQ)19.211.89
Free Cash Flow Yield (TTM)3.37%3.94%