HOME DEPOT INC's gross profit margin for the third quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. HOME DEPOT INC has very weak liquidity. Currently, the Quick Ratio is 0.31 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 24.63% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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|Income Statement||Q3 FY15||Q3 FY14|
|Net Sales ($mil)||21819.0||20516.0|
|Net Income ($mil)||1725.0||1537.0|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||3040.0||2181.0|
|Total Assets ($mil)||44152.0||41512.0|
|Total Debt ($mil)||20862.0||16727.0|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||34.67||34.33|
|Return on Assets||15.66||14.4|
|Return on Equity||90.78||59.13|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||1284.0||1318.0|
|Div / share||0.59||0.47|
|Book value / share||5.93||7.67|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||5538646.0||4810189.0|
BUY. HOME DEPOT INC's P/E ratio indicates a discount compared to an average of 26.12 for the Specialty Retail industry and a value on par with the S&P 500 average of 21.93. For additional comparison, its price-to-book ratio of 21.38 indicates a significant premium versus the S&P 500 average of 2.77 and a significant premium versus the industry average of 10.85. The current price-to-sales ratio is similar to the S&P 500 average, but it is above the industry average, indicating a premium.
|HD 23.76||Peers 26.12||HD 17.37||Peers 16.47|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.
HD is trading at a valuation on par with its peers.
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
HD is trading at a valuation on par to its peers.
|HD 20.63||Peers 21.04||HD 1.83||Peers 1.97|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
HD is trading at a premium to its peers.
Average. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
HD trades at a valuation on par to its peers.
|HD 21.38||Peers 10.85||HD 21.36||Peers 72.16|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
HD is trading at a significant premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, HD is expected to significantly trail its peers on the basis of its earnings growth rate.
|HD 1.88||Peers 1.57||HD 6.10||Peers 6.49|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
HD is trading at a premium to its industry on this measurement.
Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.
HD is keeping pace with its peers on the basis of sales growth.
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