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Stock AnalysisTicker: $HD
Stock Price: $262.64
Sector: Consumer Cyclical | Home Improvement Retail
Market Cap: 287.20 B
Forward P/E: 21.22
Dividend Per Share: $6.00
Current Div Yield: 2.28%
Payout Ratio: 54%
5-Year Dividend Growth: 23%
1/14
P/B Ratio: 183.66!!
Debt/Eq : 23.01!!
Both definitely need some further investigation!
Current Ratio: 1.40
Uninterrupted dividends 32 years
Raised dividends for 11 years consecutively
2/14
Debt/Eq : 23.01!!
Both definitely need some further investigation!
Current Ratio: 1.40
Uninterrupted dividends 32 years
Raised dividends for 11 years consecutively
2/14
Business Overview
Home Depot operates as a home improvement retailer. It operates stores that sell various building materials, home improvement products, lawn and garden products, and decor products, as well as provide installation, home maintenance, and professional service
3/14
Home Depot operates as a home improvement retailer. It operates stores that sell various building materials, home improvement products, lawn and garden products, and decor products, as well as provide installation, home maintenance, and professional service
3/14
Business Summary
Home Depot began operating in 1978, (32 years after Lowe’s was founded). Despite its later start, Home Depot is now the world’s biggest home improvement retailer with over $100 billion in annual sales.Â
4/14
Home Depot began operating in 1978, (32 years after Lowe’s was founded). Despite its later start, Home Depot is now the world’s biggest home improvement retailer with over $100 billion in annual sales.Â
4/14
Home Depot controls the number one market share position in the U.S., Mexico and Canada for home improvement.
5/14
5/14
Home Depot’s stores offer over 35,000 items covering a wide variety of building materials, lawn & garden products, and home improvement products. Its online catalog offers over 1 million products!!
Online sales represent only about 8% of Home Depot’s total revenue
6/14
Online sales represent only about 8% of Home Depot’s total revenue
6/14
The majority of the company’s customers are do-it-yourself consumers, who account for close to 60% of Home Depot’s total sales.
(In contrast, Lowe's often targets contractors and professional home builders.)
7/14
(In contrast, Lowe's often targets contractors and professional home builders.)
7/14
Professional contractors account for just around 3% of Home Depot’s total customer base, However that 3% will generate over 40% of the company’s total sales because they spend much more on projects each year.
8/14
8/14
Management notes that 90% of the U.S. population lives within a 10-mile radius of a Home Depot store. As a result, over 50% of the company's online orders are picked up in the store, and over 85% of online returns are completed in Home Depot stores.
9/14
9/14
Risks
Over short periods of time, Home Depot’s business is most sensitive to U.S. GDP and the housing market.
Home Depot is highly dependent on the growth of the US economy and any recessions the company may face will also result in hard times for $HD
10/14
Over short periods of time, Home Depot’s business is most sensitive to U.S. GDP and the housing market.
Home Depot is highly dependent on the growth of the US economy and any recessions the company may face will also result in hard times for $HD
10/14
Another risk for Home Depot now is that for the first time ever, more Americans 18 to 34 years old live in their parents’ house than with a partner in their own home, according to data cited by Bloomberg.
11/14
11/14
This data suggests that this potential trend could result in fewer new homes being built and slower revenue growth.
12/14
12/14
To close-
Looking at the fundamentals, there’s not much to dislike about Home Depot. The company maintains the largest market share in the home improvement retail industry, benefits from economies of scale, is a supply chain expert.
13/14
Looking at the fundamentals, there’s not much to dislike about Home Depot. The company maintains the largest market share in the home improvement retail industry, benefits from economies of scale, is a supply chain expert.
13/14
The company looks historically fair valued on both a P/E basis and historical dividend basis. The dividend growth is extremely attractive over the past 5 years making this stock attractive to any dividend growth investor!
$HD
14/14
$HD
14/14
The above statements were not investment advice and were only my opinion.
Please do further research if you choose to invest.
Please do further research if you choose to invest.
