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The Home Depot Inc
🇺🇸 HD · NYSE/NASDAQ · US4370761029
Consumer
USD 354.37 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
25.2
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 354.37 ÷ 14.08 = 25.2
TTM period through: 2026-04-30
Forward P/E (estimated): 23.6
Based on analyst estimates
Reference: Provider P/E (Trailing): 25.4
Net Debt/EBITDA (TTM)
2.3x
Latest quarter: 9.3x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-04-30
Latest quarter (2026-04-30): 9.3x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
ROE
1.3%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
16.4x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
2.63%
TTM: 2.61%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Forward Yield (estimated): 2.63%
Trailing Yield (TTM, last 12 months): 2.61%
Payout Ratio (Fwd)
66.2%
TTM: 65.6%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (Fwd): 66.2%
Payout (TTM): 65.6%
Cash Flow Payout (TTM): 50.9%
FCF Coverage (TTM): 1.56x
Growth Streak
8 yrs
Consec. increases
Div. Growth (5Y)
8.9%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 04 Jun 2027 | — | USD | 2.33 |
| Forecast* | Quarterly | — | 12 Mar 2027 | — | USD | 2.33 |
| Forecast* | Quarterly | — | 27 Nov 2026 | — | USD | 2.25 |
| Forecast* | Quarterly | — | 29 Aug 2026 | — | USD | 2.25 |
| Paid | Quarterly | 21 May 2026 | 04 Jun 2026 | 18 Jun 2026 | USD | 2.33 |
| Paid | Quarterly | 24 Feb 2026 | 12 Mar 2026 | 26 Mar 2026 | USD | 2.33 |
| Paid | Quarterly | 20 Nov 2025 | 04 Dec 2025 | 18 Dec 2025 | USD | 2.3 |
| Paid | Quarterly | 21 Aug 2025 | 04 Sep 2025 | 18 Sep 2025 | USD | 2.3 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
The Home Depot is an exceptionally high-quality retail leader backed by a robust track record of dividend growth and significant regulatory moats that protect its market share. However, current valuations (P/E 25.16) and a 2.61% dividend yield offer limited upside and fall short of strategy requirements for new capital. Existing shareholders should maintain positions given the resilient free cash flow and dominant competitive position, but new investors should monitor for cyclical pullbacks that offer a more attractive entry point.
Sector Context
The Home Depot operates as the world's largest home improvement retailer, functioning within a dominant duopoly that supplies building materials and services to both DIY consumers and professional contractors. In the context of dividend investing, while retail is inherently cyclical and exposed to consumer discretionary spending, the company's massive scale, essential Pro-customer base, and structural advantages in navigating complex regulations create a deep economic moat.
Temporary Opportunity Identified
Cyclical earnings pressure stemming from a stagnant existing home sales market and elevated interest rates, which are temporarily suppressing large-ticket discretionary renovation spending.
📊 Strategy Analysis
- • Dominant market position within a retail duopoly, featuring a massive regulatory moat (such as proprietary EPA compliance portals and complex return logistics) that systematically disadvantages smaller competitors.
- • Robust dividend growth track record featuring a 12.6% long-term CAGR, supported by a sustainable 63.5% payout ratio and healthy free cash flow coverage of 1.56x.
- • Manageable leverage profile with a Net Debt/EBITDA ratio of 2.33x, providing strong financial resilience to navigate housing market cycles.
⚠ What to Watch
- • Valuation multiples remain significantly elevated, with a trailing P/E of 25.16 well above the strategy's target range of 8-15x.
- • The trailing dividend yield of 2.61% currently falls short of the 3% minimum requirement for deploying new capital.
- • Near-term earnings continue to face cyclical headwinds from a sluggish housing turnover market and pressure on consumer discretionary spending tied to a 'higher-for-longer' interest rate environment.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-07-04
Disclaimer: This information is for educational purposes only. Not financial advice.