The Home Depot Inc

Find Ratings Reports
HD : NYSE : Services
$153.15 up 0.91 | 0.6%
Today's Range: 152.36 - 153.45
Avg. Daily Volume: 4300900.0
06/28/17 - 2:12 PM ET

Financial Analysis


HOME DEPOT INC's gross profit margin for the first quarter of its fiscal year 2017 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 0.35 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.

At the same time, stockholders' equity ("net worth") has significantly decreased by 37.45% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)23887.022762.0
EBITDA ($mil)3793.03512.0
EBIT ($mil)3349.03079.0
Net Income ($mil)2014.01803.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)3565.03257.0
Total Assets ($mil)44944.044576.0
Total Debt ($mil)22937.020948.0
Equity ($mil)3962.06335.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin34.1434.23
EBITDA Margin15.8715.42
Operating Margin14.0213.53
Sales Turnover2.132.03
Return on Assets18.1716.22
Return on Equity206.15114.17
Debt Q1 FY17 Q1 FY16
Current Ratio1.211.25
Debt/Capital0.850.77
Interest Expense254.0244.0
Interest Coverage13.1912.62


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)1197.01245.0
Div / share0.890.69
EPS1.671.44
Book value / share3.315.09
Institutional Own % n/a n/a
Avg Daily Volume4113513.04052338.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 21.78 for the Specialty Retail industry and a discount compared to the S&P 500 average of 25.75. For additional comparison, its price-to-book ratio of 46.97 indicates a significant premium versus the S&P 500 average of 3.09 and a significant premium versus the industry average of 21.49. The current price-to-sales ratio is below the S&P 500 average, but above the industry average. Upon assessment of these and other key valuation criteria, HOME DEPOT INC proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
HD 23.28 Peers 21.78   HD 17.23 Peers 13.51

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.

 

Premium. 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 significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
HD 19.08 Peers 18.60   HD 1.93 Peers 1.65

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.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
HD 46.97 Peers 21.49   HD 17.39 Peers 12.00

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
HD 1.94 Peers 1.45   HD 5.89 Peers 5.75

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 significant premium to its industry.

 

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.

 

 

Latest Stock Upgrades/Downgrades