HD
The Home Depot·NYSE
--
--(--)
--
--(--)
6.72 / 10
Outperform
HD's fundamentals are assessed at 6.7/10, with several key ratios in favorable quartiles: Fixed assets turnover ratio (6.0358) and Total assets turnover ratio (1.8478) both rank in the top two groups, indicating efficient asset utilization. However, Net cash flow from operating activities per share shows a YoY decline of -26.7287%, and the Operating cycle (84.5838 days) is relatively long, tempering the overall strength. Equity multiplier metrics are high, signaling substantial leverage, while Profit-MV and Cash-MV remain positive, supporting the Outperform stance.
Analysis Checks(9/10)
Net cash flow from operating activities per share (YoY growth rate %)
Value-26.73
Score2/3
Weight3.35%
1M Return1.78%
Value-26.73
Score2/3
Weight3.35%
1M Return1.78%
Shareholders’ equity attributable to parent company / Total liabilities (%)
Value0.07
Score2/3
Weight3.86%
1M Return1.97%
Value0.07
Score2/3
Weight3.86%
1M Return1.97%
Equity multiplier
Value14.48
Score2/3
Weight4.54%
1M Return2.29%
Value14.48
Score2/3
Weight4.54%
1M Return2.29%
Fixed assets turnover ratio
Value6.04
Score3/3
Weight10.07%
1M Return4.66%
Value6.04
Score3/3
Weight10.07%
1M Return4.66%
Equity multiplier (DuPont analysis %)
Value22.47
Score2/3
Weight5.40%
1M Return2.70%
Value22.47
Score2/3
Weight5.40%
1M Return2.70%
Asset-liability ratio (%)
Value93.09
Score2/3
Weight3.98%
1M Return2.01%
Value93.09
Score2/3
Weight3.98%
1M Return2.01%
Operating cycle
Value84.58
Score1/3
Weight3.78%
1M Return1.97%
Value84.58
Score1/3
Weight3.78%
1M Return1.97%
Profit-MV
Value0.86
Score3/3
Weight29.79%
1M Return13.10%
Value0.86
Score3/3
Weight29.79%
1M Return13.10%
Total assets turnover ratio
Value1.85
Score3/3
Weight8.91%
1M Return4.44%
Value1.85
Score3/3
Weight8.91%
1M Return4.44%
Cash-MV
Value1.08
Score3/3
Weight26.32%
1M Return10.76%
Value1.08
Score3/3
Weight26.32%
1M Return10.76%
Net cash flow from operating activities per share (YoY growth rate %)
Value-26.73
Score2/3
Weight3.35%
1M Return1.78%
Value-26.73
Score2/3
Weight3.35%
1M Return1.78%
Asset-liability ratio (%)
Value93.09
Score2/3
Weight3.98%
1M Return2.01%
Value93.09
Score2/3
Weight3.98%
1M Return2.01%
Shareholders’ equity attributable to parent company / Total liabilities (%)
Value0.07
Score2/3
Weight3.86%
1M Return1.97%
Value0.07
Score2/3
Weight3.86%
1M Return1.97%
Operating cycle
Value84.58
Score1/3
Weight3.78%
1M Return1.97%
Value84.58
Score1/3
Weight3.78%
1M Return1.97%
Equity multiplier
Value14.48
Score2/3
Weight4.54%
1M Return2.29%
Value14.48
Score2/3
Weight4.54%
1M Return2.29%
Profit-MV
Value0.86
Score3/3
Weight29.79%
1M Return13.10%
Value0.86
Score3/3
Weight29.79%
1M Return13.10%
Fixed assets turnover ratio
Value6.04
Score3/3
Weight10.07%
1M Return4.66%
Value6.04
Score3/3
Weight10.07%
1M Return4.66%
Total assets turnover ratio
Value1.85
Score3/3
Weight8.91%
1M Return4.44%
Value1.85
Score3/3
Weight8.91%
1M Return4.44%
Equity multiplier (DuPont analysis %)
Value22.47
Score2/3
Weight5.40%
1M Return2.70%
Value22.47
Score2/3
Weight5.40%
1M Return2.70%
Cash-MV
Value1.08
Score3/3
Weight26.32%
1M Return10.76%
Value1.08
Score3/3
Weight26.32%
1M Return10.76%
Is HD undervalued or overvalued?
- HD scores 6.72/10 on fundamentals and holds a Discounted valuation at present. Backed by its 123.53% ROE, 8.77% net margin, 26.29 P/E ratio, 31.64 P/B ratio, and -0.41% earnings growth, these metrics solidify its Outperform investment rating.
