Reading the tape
NYSE: HD
The Home Depot, Inc.
Consumer Cyclical · Home Improvement
Market Cap
$316.19B
52w High
$426.75
52w Low
$310.40
P/E
22.27
Volume
3.86M
Outstanding Shares
996.03M
Price vs Fundamentals
Why The Stock Is Moving
Likely fundamental deteriorationModerate confidence
Note: The most recent financial data is over 3 months old. Metrics shown may not reflect the latest reporting period.
1Y Price: -12.99%Revenue (TTM): 3.24%FCF (TTM): -22.54%P/FCF: 72nd pct
What changed
The stock fell 12.99% over the last year. Revenue grew 3.24% over the trailing twelve months. Operating margin moved from 13.49% to 12.68%. Free cash flow declined 22.54% over the trailing twelve months.
What the market seems to be pricing
The market is reacting to weaker business momentum more than just compressing the valuation multiple. Even if the shares already screen cheap on P/FCF, investors are still discounting lower future earnings power.
What would invalidate this read
Operating margin stands at 12.68%. Free cash flow fell 22.54% — a return toward positive territory would undermine the deterioration thesis. If margins and cash flow stabilize while the stock stays depressed, the gap shifts from fundamental damage toward pure multiple compression.
Company profile
The Home Depot, Inc. operates as a home improvement retailer.
CEOEdward Decker
SectorConsumer Cyclical
IndustryHome Improvement
Employees470,100
IPO dateSep 22, 1981
Valuation
Forward P/E—
EV/EBITDA18.09
Enterprise value$439.43B
Stock splits
Dec 31, 1999↑ Forward
Every 2 shares became 3
Jul 6, 1998↑ Forward
Every 1 shares became 2
Jul 7, 1997↑ Forward
Every 2 shares became 3
Apr 14, 1993↑ Forward
Every 3 shares became 4
Jul 2, 1992↑ Forward
Every 2 shares became 3
Jun 26, 1991↑ Forward
Every 2 shares became 3
Jul 6, 1990↑ Forward
Every 2 shares became 3
Jul 3, 1989↑ Forward
Every 2 shares became 3
Profitability & growth
Revenue growth-3.79%
Gross margin33.32%▼0.31%vs FY2025
Operating margin12.68%▼6.00%vs FY2025
ROE110.48%▼50.45%vs FY2025
Analyst consensus
RatingBuy
Target price$408.08▲28.55%
38
Buy
20
Hold
4
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
May 19, 2026
Q2 FY26 · EPS est $3.42 · Revenue est $41.64B
View
Dividends
$9.23/shareQuarterlyDividend Aristocrat · 37yrAdequateHD pays a dividend with a 2.91% dividend yield, 37 consecutive years of growth, growing at 8.46% annually, covered 1.4× by free cash flow.
Dividend Yield
2.91%
Annual Div / Share
$9.23
5yr CAGR
+8.46%
Doubles every ~8.5yr
Payout Ratio
64.65%
Adequate
Dividend Growth Rate
3yr CAGR
+5.82%
5yr CAGR
+8.46%
10yr CAGR
+14.14%
Dividend Safety
5/10Adequate
Dividend History
Annualized dividend cycles per share
YearAnnual DivYoY
2025$9.23+2.0%
2024$9.05+6.2%
2023$8.52+9.4%
2022$7.79+13.7%
2021$6.85+11.4%
2020$6.15+10.2%
2019$5.58+25.4%
Income Projection
Invest
$
Growth rate:
Reinvest dividends
Today
$29/yr
$2/mo
In 5 yrs
$44/yr+50%
$4/mo
In 10 yrs
$65/yr+125%
$5/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$29/yr $2/mo | $44/yr+50% $4/mo | $65/yr+125% $5/mo |
Yield-on-cost grows from 2.91% → 6.55% over 10yr
Analysis
Dividend Strengths
Dividend Aristocrat
HD has raised its dividend for 37 consecutive years — qualifying as a Dividend Aristocrat, demonstrating long-term commitment to shareholder income.
Strong dividend growth rate
The 5-year CAGR of 8.46% meaningfully outpaces inflation, compounding real income growth for long-term holders.
Risks to Watch
No strong risk signal stands out from the latest period pair.
Congressional Activity
Congress Trades in HD
STOCK Act disclosures from senators and representatives.
David Taylor
OHhouseRepublicanPurchase2026-04-27$1,001 - $15,000+11d to discloseDavid Taylor
OHhouseRepublicanSale2026-04-27$1,001 - $15,000+11d to disclose
Lloyd Doggett
TXhouseDemocratPurchase2026-03-26$1,001 - $15,000+13d to disclose- RM
Richard Dean Dr McCormick
GAhouseRepublicanPurchase2026-03-19$1,001 - $15,000+19d to disclose David Taylor
OHhouseRepublicanPurchase2026-03-12$1,001 - $15,000+11d to disclose
Sheldon Whitehouse
RIsenateDemocratSaleSelf2026-02-23$1,001 - $15,000+11d to discloseSheldon Whitehouse
RIsenateDemocratSaleSelf2026-01-09$1,001 - $15,000+26d to disclose
Markwayne Mullin
OKsenateRepublicanPurchaseJoint2025-12-29$15,001 - $50,000+17d to disclose