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The Home Depot, Inc is a home improvement retail business based in the US. The Home Depot shares (HD) are listed on the NYSE and all prices are listed in US Dollars. The Home Depot employs 400,000 staff and has a trailing 12-month revenue of around USD$125.6 billion.
Since the stock market crash in March caused by coronavirus, The Home Depot's share price has had significant positive movement.
Its last market close was USD$283.73, which is 13.53% up on its pre-crash value of USD$245.34 and 101.76% up on the lowest point reached during the March crash when the shares fell as low as USD$140.63.
If you had bought USD$1,000 worth of The Home Depot shares at the start of February 2020, those shares would have been worth USD$701.52 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth USD$1,225.71.
|Latest market close||USD$283.73|
|52-week range||USD$139.0619 - USD$292.655|
|50-day moving average||USD$278.8992|
|200-day moving average||USD$266.187|
|Wall St. target price||USD$304.13|
|Dividend yield||USD$6 (2.22%)|
|Earnings per share (TTM)||USD$11.561|
The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.
|1 week (2020-11-19)||4.72%|
|1 month (2020-10-27)||2.49%|
|3 months (2020-08-27)||-1.70%|
|6 months (2020-05-26)||17.01%|
|1 year (2019-11-26)||28.52%|
|2 years (2018-11-26)||67.08%|
|3 years (2017-11-24)||64.64%|
|5 years (2015-11-25)||110.72%|
Valuing The Home Depot stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of The Home Depot's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
The Home Depot's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 23x. In other words, The Home Depot shares trade at around 23x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
The Home Depot's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.5225. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into The Home Depot's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
The Home Depot's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$20 billion.
The EBITDA is a measure of a The Home Depot's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||USD$125.6 billion|
|Operating margin TTM||14.01%|
|Gross profit TTM||USD$37.6 billion|
|Return on assets TTM||18.45%|
|Return on equity TTM||5514.35%|
|Market capitalisation||USD$309.1 billion|
TTM: trailing 12 months
There are currently 6.0 million The Home Depot shares held short by investors – that's known as The Home Depot's "short interest". This figure is 2.9% up from 5.9 million last month.
There are a few different ways that this level of interest in shorting The Home Depot shares can be evaluated.
The Home Depot's "short interest ratio" (SIR) is the quantity of The Home Depot shares currently shorted divided by the average quantity of The Home Depot shares traded daily (recently around 2.8 million). The Home Depot's SIR currently stands at 2.16. In other words for every 100,000 The Home Depot shares traded daily on the market, roughly 2160 shares are currently held short.
However The Home Depot's short interest can also be evaluated against the total number of The Home Depot shares, or, against the total number of tradable The Home Depot shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case The Home Depot's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 The Home Depot shares in existence, roughly 10 shares are currently held short) or 0.0056% of the tradable shares (for every 100,000 tradable The Home Depot shares, roughly 6 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against The Home Depot.
Find out more about how you can short The Home Depot stock.
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like The Home Depot.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 14.87
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and The Home Depot's overall score of 14.87 (as at 01/01/2019) is excellent – landing it in it in the 8th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like The Home Depot is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Environmental score: 6.14/100
The Home Depot's environmental score of 6.14 puts it squarely in the 5th percentile of companies rated in the same sector. This could suggest that The Home Depot is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 8.66/100
The Home Depot's social score of 8.66 puts it squarely in the 5th percentile of companies rated in the same sector. This could suggest that The Home Depot is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 5.07/100
The Home Depot's governance score puts it squarely in the 5th percentile of companies rated in the same sector. That could suggest that The Home Depot is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. The Home Depot scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that The Home Depot has, for the most part, managed to keep its nose clean.
|Total ESG score||14.87|
|Total ESG percentile||8.2|
|Environmental score percentile||5|
|Social score percentile||5|
|Governance score percentile||5|
|Level of controversy||2|
Dividend payout ratio: 39.76% of net profits
Recently The Home Depot has paid out, on average, around 39.76% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 2.22% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), The Home Depot shareholders could enjoy a 2.22% return on their shares, in the form of dividend payments. In The Home Depot's case, that would currently equate to about $6 per share.
While The Home Depot's payout ratio might seem fairly standard, it's worth remembering that The Home Depot may be investing much of the rest of its net profits in future growth.
The Home Depot's most recent dividend payout was on 17 September 2020. The latest dividend was paid out to all shareholders who bought their shares by 2 December 2020 (the "ex-dividend date").
The Home Depot's shares were split on a 3:2 basis on 31 December 1999. So if you had owned 2 shares the day before before the split, the next day you'd have owned 3 shares. This wouldn't directly have changed the overall worth of your The Home Depot shares – just the quantity. However, indirectly, the new 33.3% lower share price could have impacted the market appetite for The Home Depot shares which in turn could have impacted The Home Depot's share price.
Over the last 12 months, The Home Depot's shares have ranged in value from as little as $139.0619 up to $292.655. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while The Home Depot's is 1.1172. This would suggest that The Home Depot's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).
The Home Depot, Inc. operates as a home improvement retailer. It operates The Home Depot stores that sell various building materials, home improvement products, lawn and garden products, and décor products, as well as provide installation, home maintenance, and professional service programs to do-it-yourself and professional customers. The company also offers installation programs that include flooring, cabinets and cabinet makeovers, countertops, furnaces and central air systems, and windows; and professional installation in various categories sold through its stores and in-home sales programs, as well as acts as a general contractor to provide installation services to its do-it-for-me customers through third-party installers. In addition, it provides tool and equipment rental services. The company primarily serves home owners; and professional renovators/remodelers, general contractors, handymen, property managers, building service contractors, and specialty tradesmen, such as electricians, plumbers, and painters. It also sells its products online. As of August 4, 2020, the company operated 2,293 retail stores in 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces, and Mexico. The Home Depot, Inc. was founded in 1978 and is based in Atlanta, Georgia.
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