The Home Depot (HD) Fundamental Analysis: Revenue, Earnings & Valuation

6.73 / 10

Outperform

Fundamental rating is Outperform with a 6.7/10 score. Strong points include cash‑up, high cash‑to‑market‑value and robust net cash flow ratios. Weaknesses appear in total‑asset growth and net‑income‑to‑revenue, suggesting modest risk despite overall solid fundamentals.

Analysis Checks(8/10)

Net cash flow from operating activities per share (YoY growth rate %)

Value-28.34

Score2/3

Weight2.89%

1M Return1.59%

Total assets (growth rate compared to beginning of year %)

Value25.60

Score1/3

Weight4.18%

1M Return2.21%

Shareholders’ equity attributable to parent company / Total liabilities (%)

Value0.07

Score2/3

Weight4.52%

1M Return2.48%

Net cash flow from operating activities / Operating revenue (%)

Value12.42

Score3/3

Weight8.72%

1M Return4.26%

Profit-MV

Value0.80

Score3/3

Weight36.54%

1M Return15.72%

Net income-Revenue

Value0.35

Score0/3

Weight-0.04%

1M Return-0.02%

Current assets turnover ratio

Value5.19

Score2/3

Weight6.63%

1M Return3.42%

Cash-UP

Value-0.15

Score2/3

Weight1.82%

1M Return0.99%

Net cash flow from operating activities / Total liabilities (%)

Value0.22

Score3/3

Weight9.94%

1M Return4.93%

Cash-MV

Value1.04

Score3/3

Weight24.78%

1M Return10.87%

Is HD undervalued or overvalued?

HD scores 6.73/10 on fundamentals and holds a Discounted valuation at present. Backed by its 145.54% ROE, 8.60% net margin, 22.62 P/E ratio, 24.99 P/B ratio, and -4.68% earnings growth, these metrics solidify its Outperform investment rating.