The Home Depot, Inc.HD
NYSE•Consumer Cyclical•Home Improvement Retail
The Home Depot, Inc. operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products. The company also offers installation services for flooring, water heaters, baths, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, and windows. In addition, it provides tool and equipment rental services. The company serves consumers, such as do-it-yourself homeowners and do-it-for-me customers; and professional renovators/remodelers, general contractors, small to medium homebuilders, maintenance professionals, handymen, property managers, building service contractors and specialty tradespeople, such as electricians, landscapers, plumbers, painters, pool contractors, and roofers. It sells its products through websites and its mobile applications, including homedepot.com; homedepot.ca and homedepot.com.mx; blinds.com, justblinds.com, and americanblinds.com for custom window coverings; thecompanystore.com, an online site for textiles and décor products; hdsupply.com for maintenance, repair, and operations products and related services; and srsdistribution.com, heritagelandscapesupplygroup.com, and heritagepoolsupplygroup.com for roofing and building materials, landscape, and pool products; and The Home Depot stores. The Home Depot, Inc. was incorporated in 1978 and is headquartered in Atlanta, Georgia.
Home Depot, Inc. (The) (HD) reported trailing twelve months revenue of $166.59B as of May 2026, a 2.2% increase year-over-year. Quarterly revenue reached $41.77B, reflecting continued top-line momentum.
Home Depot, Inc. (The) generated $14.01B in TTM net income, with quarterly EBITDA of $4.98B. The operating margin contracted from 12.9% to 11.9%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (11.9%) and net margin (7.9%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 8.6% a year ago, reflecting increased costs or interest expense.
HD trades at a P/E of 23.0x (in line with broad market averages) and a P/S of 1.9x. The price-to-book ratio of 23.2x indicates a significant premium over book value.
The company generated $5.19B in free cash flow over the trailing twelve months, a 47.4% increase year-over-year, indicating cash generation ability. The balance sheet shows $107.90B in total assets with $44.83B in long-term debt against $13.87B in stockholders equity for a debt-to-equity ratio of 3.2, a relatively leveraged position. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~12.8% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 182.8% suggests a durable competitive advantage and efficient capital allocation.
8 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
TTM revenue has grown consistently (6 of 7 quarters up), with ~9.5% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Operating margins declined 6.4% — watch for continued compression, which may signal competitive or cost pressure.
FCF covers net income by 1.0x on average — earnings are well-supported by cash generation.
D/E ratio is 3.2 — dangerously high. The company is heavily leveraged and vulnerable to rising rates or cash flow dips.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Share count is stable — no significant dilution or buyback activity.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation