Home Depot HD
Home Depot is the leading home improvement retailer in the US, operating large do-it-yourself and professional construction supply stores. Home Depot shows solid financial health (ND/EBITDA 2.48) and a strong competitive moat (ROIC 27.26%), but growth is moderate (revenue +5.7%) and momentum is very negative (-17.81%), reflecting pressure from high rates on home improvement demand.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Home Depot is the leading home improvement retailer in the US, operating large do-it-yourself and professional construction supply stores. Home Depot shows solid financial health (ND/EBITDA 2.48) and a strong competitive moat (ROIC 27.26%), but growth is moderate (revenue +5.7%) and momentum is very negative (-17.81%), reflecting pressure from high rates on home improvement demand.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.5 |
| Quality / Moat | 7.4 |
| Valuation | 5.5 |
| Growth | 5.1 |
| Dividend | 7.2 |
| Momentum | 3.2 |
| Risk & Context | 6.1 |
OVERALL SCORE: 5.9/10
Context and risks
The rise in 10-year yields (5.17%) makes mortgages more expensive, slowing home sales and reducing demand for home improvements, a key driver for Home Depot. Additionally, its position in the 3rd percentile of the 52-week range already reflects part of this impact, but the rate risk remains relevant for its cyclical business.
News considered in the analysis
- What Actually Made Home Depot (HD) Wall Street’s Best-Kept Compounding Secret? — Artículo de opinión sin información nueva; no afecta a la valoración.
- Is Home Depot’s Dividend Safe if Housing Stays Frozen? — Preocupación sobre la sostenibilidad del dividendo si el mercado inmobiliario sigue débil; el payout del 64.8% es manejable pero la demanda podría presionar.
- Home Depot Yields More Than 3x the S&P 500. Here's the Effect on a $10,000 Investment. — Listículo sobre dividendos sin información nueva.
- Is Home Depot's Next Big Thing Already In Its Stores? — Especulación sin datos concretos; no aporta información material.
- Musk’s ‘Zuckerberg moment,’ mortgage rates, and Google’s space bet — Menciona tipos hipotecarios altos, que afectan directamente a la demanda de mejoras del hogar; ya parcialmente descontado en el momentum negativo.
Verdict: Hold; wait for lower rates or an improvement in the housing market before adding to the position.
Main risk: The main risk is the business's sensitivity to mortgage rates: if the housing market remains frozen, demand for home improvement could stall, impacting revenue and earnings.
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