Home Depot, Inc. (The) (HD) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Home Depot, Inc. (The)

NYSE•Consumer Cyclical•Home Improvement Retail

$299.98-2.53(-0.01%)After hours

Market Cap

$299.36B

P/E

21.0x

P/S

1.8x

P/B

18.0x

The Home Depot, Inc. operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products. The company also offers installation services for flooring, water heaters, baths, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, windows, and window coverings. In addition, it provides tool and equipment rental services. The company serves consumers, such as do-it-yourself homeowners and do-it-for-me customers; and professional renovators/remodelers, general contractors, homebuilders, maintenance professionals, handymen, property managers, building service contractors and specialty tradespeople, such as electricians, landscapers, insulation installers, plumbers, painters, pool contractors, roofers, and wallboard and ceiling installers. It sells its products through websites and its mobile applications, including homedepot.com; homedepot.ca and homedepot.com.mx; blinds.com, justblinds.com, and americanblinds.com for custom window coverings; constructionresourcesusa.com or design-oriented surfaces, appliances, and architectural specialty products; thecompanystore.com, an online site for textiles and décor products; hdsupply.com for maintenance, repair, and operations products and related services; and srsdistribution.com, heritagelandscapesupplygroup.com, heritagepoolsupplygroup.com, and gms.com for roofing and building materials, landscape, and pool products; and The Home Depot stores. The Home Depot, Inc. was incorporated in 1978 and is headquartered in Atlanta, Georgia.

How this company scores

GoodMetricSide Score: 62/100

Strongest: Cash & Earnings Quality (21/25); weakest: Balance Sheet & Red Flags (12/25).

Profitability17/25

Growth12/25

Balance Sheet & Red Flags12/25

Cash & Earnings Quality21/25

Strengths

High ROEConsistent free cash flowImproving leverageConsistent growth

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 21.0x5y range 17.5x – 27.5x

Currently near its 20-quarter median.

P/S · 1.8x5y range 1.8x – 2.6x

Currently near its 20-quarter median.

P/B · 18.0x5y range 18.0x – 1299.0x

Currently below its 18-quarter median.

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Margin Pressure

Watch

Operating margins declined 5.6% — watch for continued compression, which may signal competitive or cost pressure.

Leverage Risk

Watch

D/E ratio of 2.6 is elevated. Watch for further debt accumulation.

Price & Volume

Market Cap $299.36B

Metrics at a Glance

as of August 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $169.18B
Q. Revenue: $47.86B
TTM EBITDA: $21.02B
TTM Op. Income: $21.02B
Q. Op. Income: $6.84B
TTM Net Income: $14.23B
Q. Net Income: $4.77B
EPS: $4.79
Shares Out.: $994.00M

$169.18B in TTM revenue grew 2.5% YoY, reaching $47.86B last quarter. TTM EBITDA of $21.02B and TTM operating income of $21.02B show growth is flowing through to the bottom line. TTM net income of $14.23B means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 2 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin: 14.3%
Op. Margin: 14.3%
Net Margin: 10.0%

Op. margin of 14.3% is down 0.2% YoY — costs are rising relative to revenue. Net margin at 10.0% Across the last 8 quarters, operating margin has risen for 2 consecutive quarters — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 21.0x
P/S Ratio: 1.8x
P/B Ratio: 18.0x

At 21.0x P/E, the stock trades within typical market levels. P/S of 1.8x and P/B of 18.0x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has fallen for 2 consecutive quarters — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $109.38B
Cash: $2.08B
Long-Term Debt: $43.95B
Book Value: $16.62B
D/E Ratio: 2.6
Debt/EBITDA: 6.4

With $109.38B in assets and $43.95B in long-term debt, D/E is 2.6and book value is $16.62B — elevated leverage, meaning significant financial risk in a downturn. Across the last 8 quarters, debt/equity has fallen for 2 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $5.39B
TTM Free Cash Flow: $15.10B
FCF Margin: 8.9%
FCF / Net Income: 1.1

TTM FCF of $15.10B on $5.39B in operating cash flow. The FCF / Net Income ratio of 1.1x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 2 consecutive quarters — an improving trend.