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The Home Depot Inc
🇺🇸 HD · NYSE/NASDAQ · US4370761029
Consumer
USD 338.37 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
24.2
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: 338.37 ÷ 14.08 = 24.2
TTM period through: 2026-04-30
Forward P/E (estimated): 23.6
Based on analyst estimates
Reference: Provider P/E (Trailing): 24.4
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)
2.79%
TTM: 2.72%
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): 2.79%
Trailing Yield (TTM, last 12 months): 2.72%
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 fortified by a robust regulatory moat and reliable free cash flow generation. While the underlying business is structurally sound and well-positioned to weather current cyclical housing headwinds, the elevated valuation (P/E of 24.16x) and sub-3% yield limit its immediate appeal. Existing holders should maintain their positions, but prospective buyers should wait for a more attractive entry valuation.
Sector Context
Home Depot operates as a dominant force in the home improvement retail sector, functioning as a powerful oligopoly alongside Lowe's. For DGI investors, its massive scale and ability to turn complex environmental and labor regulations (like EPA RRP and AIM Act) into competitive advantages provide a virtually impenetrable moat, though the sector remains sensitive to housing cycles and interest rates.
Temporary Opportunity Identified
Cyclical downturn in the housing turnover market and broader consumer discretionary spending pressures are temporarily suppressing near-term earnings growth.
📊 Strategy Analysis
- • Formidable regulatory moat and massive scale act as a high barrier to entry against regional competitors, securing long-term market dominance.
- • Solid free cash flow dividend coverage of 1.56x easily supports the 63.5% payout ratio and ongoing dividend growth.
- • Net Debt to EBITDA remains manageable at 2.33x, providing balance sheet stability despite cyclical industry headwinds.
- • Delivered a robust 5-year dividend CAGR of 8.9% with a perfect consistency score over its current track record.
⚠ What to Watch
- • Valuation multiples remain highly elevated, with a trailing P/E of 24.16x sitting well outside the optimal 8-15x target range.
- • The trailing dividend yield of 2.72% offers a relatively low starting income baseline for yield-focused portfolios.
- • Near-term earnings are cyclically challenged by a sluggish housing turnover market, reflected by recent unexpected declines in US retail sales.
📊 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: 2026-08-15
Disclaimer: This information is for educational purposes only. Not financial advice.