Home Depot (HD) Stock Analysis

June 13, 2026

Here is a fundamental analysis of Home Depot (HD), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.

Performance

Cumulative Growth

GSPC

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.

Performance at a Glance

Home Depot (HD) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: HD	Industry group median
1-Year Return	-7.17%	4.16%

Risk

Drawdown

GSPC

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.

Risk at a Glance

Home Depot (HD) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: HD	Industry group median
1-Year Volatility	23.78%	47.42%
Beta	0.96	1.12

Company Profile

Company profile fields for Home Depot (HD)
Profile Item	HD
Name	The Home Depot, Inc.
Country/Region	United States
GICS Sector	Consumer Discretionary
GICS Industry Group	Consumer Discretionary Distribution & Retail
GICS Industry	Specialty Retail
GICS Sub-Industry	Home Improvement Retail
Market Capitalization	327.44 billion USD
Currency	USD
Exchange	NYSE
Listing Date	September 22, 1981
Security Type	Common Stock

Valuation

Price-to-Earnings Ratio (TTM)

Home Depot (HD) trades at P/E ratio of 23.31, 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

23.31

Group distribution

Max: 54.29
Q3: 31.64
HD: 23.31
Median: 20.61
Q1: 12.78
Min: 1.13

Largest peers

MELI: 42.01
TJX: 32.76
AMZN: 31.64
HD: 23.31
LOW: 18.66
BABA: 17.36
PDD: 8.55

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.

Price-to-Sales Ratio (TTM)

Home Depot (HD) trades at 1.97 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

1.97

Group distribution

Max: 3.65
HD: 1.97
Q3: 1.78
Median: 0.73
Q1: 0.28
Min: 0.03

Largest peers

AMZN: 3.45
TJX: 3.02
MELI: 2.53
HD: 1.97
LOW: 1.40
BABA: 0.26
PDD: 0.26

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.

Price-to-Book Ratio (MRQ)

Home Depot (HD) trades at 23.60 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

23.60

Group distribution

HD: 23.60
Max: 11.07
Q3: 5.11
Median: 2.24
Q1: 1.05
Min: -3.64

Largest peers

HD: 23.60
TJX: 18.30
MELI: 11.07
AMZN: 5.81
PDD: 1.83
BABA: 1.67
LOW: -13.36

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 at a Glance

Home Depot (HD) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: HD	Industry group median
Price-to-Earnings Ratio (TTM)	23.31	20.61
Price-to-Sales Ratio (TTM)	1.97	0.73
Price-to-Book Ratio (MRQ)	23.60	2.24
Free Cash Flow Yield	3.09%	3.39%

Profitability

Return on Equity (TTM)

Home Depot (HD) posts ROE of 128.38%, 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

128.38%

Group distribution

HD: 128.38%
Max: 63.82%
Q3: 31.67%
Median: 12.96%
Q1: 4.89%
Min: -29.94%

Largest peers

HD: 128.38%
TJX: 61.25%
MELI: 31.26%
PDD: 25.40%
AMZN: 24.29%
BABA: 9.22%
LOW: --

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 Profit Margin (TTM)

Home Depot (HD) keeps 8.41% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

HD

Consumer Discretionary Distribution & Retail industry group

8.41%

Group distribution

Max: 20.45%
Q3: 8.75%
HD: 8.41%
Median: 3.25%
Q1: 0.49%
Min: -11.15%

Largest peers

PDD: 21.62%
AMZN: 12.22%
BABA: 10.12%
TJX: 9.40%
HD: 8.41%
LOW: 7.51%
MELI: 6.04%

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 Profit Margin (TTM)

Home Depot (HD) turns 11.93% 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

11.93%

Group distribution

Max: 23.15%
HD: 11.93%
Q3: 11.08%
Median: 4.61%
Q1: 1.68%
Min: -8.71%

Largest peers

PDD: 18.42%
AMZN: 13.14%
HD: 11.93%
TJX: 11.77%
LOW: 11.07%
MELI: 6.91%
BABA: 1.02%

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 at a Glance

Home Depot (HD) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: HD	Industry group median
Return on Equity (TTM)	128.38%	12.96%
Return on Assets (TTM)	12.52%	5.45%
Net Profit Margin (TTM)	8.41%	3.25%
Operating Profit Margin (TTM)	11.93%	4.61%
Gross Profit Margin (TTM)	33.13%	38.72%

Financial Strength

Current Ratio (MRQ)

Home Depot (HD) has current ratio of 1.05, 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

1.05

Group distribution

Max: 2.97
Q3: 1.87
Median: 1.38
HD: 1.05
Q1: 1.03
Min: 0.46

Largest peers

PDD: 2.54
BABA: 1.28
AMZN: 1.18
MELI: 1.16
TJX: 1.14
LOW: 1.09
HD: 1.05

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-to-Equity Ratio (MRQ)

Home Depot (HD) has debt-to-equity ratio of 4.59, above the industry benchmark range. Debt sits unusually high against shareholders’ equity, leaving the balance sheet more exposed to rate, refinancing, or earnings shocks.

HD

Consumer Discretionary Distribution & Retail industry group

4.59

Group distribution

HD: 4.59
Max: 3.27
Q3: 1.82
Median: 1.09
Q1: 0.67
Min: 0.01

Largest peers

HD: 4.59
MELI: 1.70
TJX: 1.36
AMZN: 0.53
BABA: 0.25
PDD: 0.01
LOW: --

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 at a Glance

Home Depot (HD) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: HD	Industry group median
Current Ratio (MRQ)	1.05	1.38
Debt-to-Equity Ratio (MRQ)	4.59	1.09
Net Debt / EBITDA	2.49	2.42

Dividends

Dividend Yield (TTM)

Home Depot (HD) has dividend yield of 2.84%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.

HD

Consumer Discretionary Distribution & Retail industry group

2.84%

Group distribution

Max: 6.62%
HD: 2.84%
Q3: 2.66%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

HD: 2.84%
LOW: 2.26%
TJX: 1.14%
BABA: 0.93%
AMZN: 0.00%
PDD: 0.00%
MELI: 0.00%

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 65.55%, 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

65.55%

Group distribution

Max: 78.51%
HD: 65.55%
Q3: 33.46%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

HD: 65.55%
LOW: 40.57%
TJX: 33.07%
BABA: 17.12%
AMZN: 0.00%
PDD: 0.00%
MELI: 0.00%

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.

Dividends at a Glance

Home Depot (HD) metric values compared with Consumer Discretionary Distribution & Retail industry-group medians
Metric	Current stock: HD	Industry group median
Dividend Yield (TTM)	2.84%	0.00%
Dividend Payout Ratio (TTM)	65.55%	0.00%