HOME DEPOT INC's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. 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 liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 28.87% 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 FY14||Q3 FY13|
|Net Sales ($mil)||20516.0||19470.0|
|Net Income ($mil)||1537.0||1351.0|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||2181.0||4853.0|
|Total Assets ($mil)||41512.0||43814.0|
|Total Debt ($mil)||16727.0||16009.0|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||35.02||34.92|
|Return on Assets||14.4||12.3|
|Return on Equity||59.13||37.94|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||1346.0||1408.0|
|Div / share||0.47||0.39|
|Book value / share||7.51||10.1|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||6458961.0||6198171.0|
BUY. The current P/E ratio indicates a discount compared to an average of 24.38 for the Specialty Retail industry and a premium compared to the S&P 500 average of 19.91. For additional comparison, its price-to-book ratio of 12.99 indicates a significant premium versus the S&P 500 average of 2.75 and a significant premium versus the industry average of 7.54. The current price-to-sales ratio is below the S&P 500 average, but above the industry average.
|HD 22.18||Peers 24.38||HD 16.48||Peers 18.81|
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.
Discount. 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 discount to its peers.
|HD 18.69||Peers 21.17||HD 1.16||Peers 2.03|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
HD is trading at a valuation on par with its peers.
Discount. 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 significant discount to its peers.
|HD 12.99||Peers 7.54||HD 18.91||Peers 0.63|
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.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
HD is expected to have an earnings growth rate that significantly exceeds its peers.
|HD 1.61||Peers 1.44||HD 2.95||Peers 7.59|
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.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
HD significantly trails its peers on the basis of sales growth
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