NYSE · Consumer Cyclical

The Home Depot, Inc.

HD · Home Improvement Retail

$313.46

▼ -10.42 (-3.22%)

Data cached · refreshes every 10 min

Mr. Market is currently offering The Home Depot, Inc. at $313.46.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

Overall Grade

Defensive

Enterprising

Profitability B

Gross Profit Margin 33.3%

Operating Margin 12.7%

Net Income Margin 8.6%

Fin. Health C

Years to Pay Off Debt 4.6 yrs

Working Capital vs Long-Term Debt -$44.4B

Working Capital $2.0B

Valuation F

Margin of Safety 0.0%

Price-to-Book 24.37x

Cash Flow B

Free Cash Flow $12.6B

CapEx % of Net Income 26.0%

Owner Earnings $22.0B

3/7

Graham Score

Speculative

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $312.2B

Enterprise Value $387.1B

P/E (TTM) 22.04

Dividend Yield 2.85%

Exchange NYSE

Key Margins

Gross Profit 33.3%

Operating Margin 12.7%

Net Margin 8.6%

Company Info

Sector Consumer Cyclical

Industry Home Improvement Retail

Employees 472400

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering The Home Depot, Inc. at $313.46.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $313.46, the stock trades at a 388% premium to its Graham Number of $64.18. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

About The Home Depot, Inc.

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.

Showing Key Metrics

Income Highlights

Metric	2026	2025	2024	2023	2022
Gross Profit %	33.3% ▼	33.4%	33.4%	33.5%	N/A
Operating Margin %	12.7% ▼	13.5%	14.2%	15.3%	N/A
Net Income %	8.6% ▼	9.3%	9.9%	10.9%	N/A
Diluted EPS	14.23 ▼	14.91	15.11	16.69	N/A

Balance Sheet Highlights

Metric	2026	2025	2024	2023	2022
Total Assets	$105.1B	$96.1B	$76.5B	$76.4B	N/A
Total Debt	$65.3B ↑	$62.3B	$52.2B	$50.4B	N/A
Working Capital	$2.0B ▼	$3.0B	$7.8B	$9.4B	N/A
Years to Pay Debt	4.62	4.21	3.45	2.94	N/A

Cash Flow Highlights

Metric	2026	2025	2024	2023	2022
Free Cash Flow	$12.6B ▼	$16.3B	$17.9B	$11.5B	N/A
Owner Earnings	$22.0B	$22.1B	$21.6B	$23.2B	N/A
CapEx % of Net Income	26.0%	23.5%	21.3%	18.2%	N/A

Income Statement

	2026	2025	2024	2023	2022
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	25,135,000	25,488,000	25,114,000	27,069,000
Net Income From Continuing Operation Net Minority Interest	14,156,000	14,806,000	15,143,000	17,105,000
Reconciled Depreciation	4,121,000	3,761,000	3,247,000	2,975,000
Reconciled Cost Of Revenue	108,970,000	105,479,000	101,135,000	104,105,000
EBITDA	25,135,000	25,488,000	25,114,000	27,069,000
EBIT	21,014,000	21,727,000	21,867,000	24,094,000
Net Interest Income	-2,288,000	-2,120,000	-1,765,000	-1,562,000
Interest Expense	2,412,000	2,321,000	1,943,000	1,617,000
Interest Income	124,000	201,000	178,000	55,000
Normalized Income	14,156,000	14,806,000	15,143,000	17,105,000
Net Income From Continuing And Discontinued Operation	14,156,000	14,806,000	15,143,000	17,105,000
Total Expenses	143,793,000	137,988,000	130,980,000	133,364,000
Total Operating Income As Reported	20,890,000	21,526,000	21,689,000	24,039,000
Diluted Average Shares	995,000	993,000	1,002,000	1,025,000
Basic Average Shares	993,000	990,000	999,000	1,022,000
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	14,156,000	14,806,000	15,143,000	17,105,000
Net Income Common Stockholders	14,156,000	14,806,000	15,143,000	17,105,000
Net Income	14,156,000	14,806,000	15,143,000	17,105,000
Net Income Including Noncontrolling Interests	14,156,000	14,806,000	15,143,000	17,105,000
Net Income Continuous Operations	14,156,000	14,806,000	15,143,000	17,105,000
Tax Provision	4,446,000	4,600,000	4,781,000	5,372,000
Pretax Income	18,602,000	19,406,000	19,924,000	22,477,000
Other Income Expense			-1,000	1,000	-35,000
Other Non Operating Income Expenses			-1,000	1,000	-35,000
Net Non Operating Interest Income Expense	-2,288,000	-2,120,000	-1,765,000	-1,562,000
Interest Expense Non Operating	2,412,000	2,321,000	1,943,000	1,617,000
Interest Income Non Operating	124,000	201,000	178,000	55,000
Operating Income	20,890,000	21,526,000	21,689,000	24,039,000
Operating Expense	33,975,000	31,782,000	29,271,000	28,739,000
Depreciation Amortization Depletion Income Statement	3,273,000	3,034,000	2,673,000	2,455,000
Depreciation And Amortization In Income Statement	3,273,000	3,034,000	2,673,000	2,455,000
Selling General And Administration	30,702,000	28,748,000	26,598,000	26,284,000
Gross Profit	54,865,000	53,308,000	50,960,000	52,778,000
Cost Of Revenue	109,818,000	106,206,000	101,709,000	104,625,000
Total Revenue	164,683,000	159,514,000	152,669,000	157,403,000
Operating Revenue	164,683,000	159,514,000	152,669,000	157,403,000

Balance Sheet

	2026	2025	2024	2023	2022
Treasury Shares Number	806,000	806,000	804,000	778,000
Ordinary Shares Number	995,511	994,000	992,000	1,016,000
Share Issued	1,801,511	1,800,000	1,796,000	1,794,000
Net Debt	54,383,000	51,724,000	40,351,000	40,436,000
Total Debt	65,350,000	62,290,000	52,243,000	50,364,000
Tangible Book Value	-19,860,000	-21,818,000	-11,017,000	-5,882,000
Invested Capital	68,585,000	60,023,000	45,155,000	44,755,000
Working Capital	1,967,000	3,022,000	7,760,000	9,361,000
Net Tangible Assets	-19,860,000	-21,818,000	-11,017,000	-5,882,000
Capital Lease Obligations	9,578,000	8,907,000	8,132,000	7,171,000
Common Stock Equity	12,813,000	6,640,000	1,044,000	1,562,000
Total Capitalization	59,154,000	55,125,000	43,787,000	43,524,000
Total Equity Gross Minority Interest	12,813,000	6,640,000	1,044,000	1,562,000
Stockholders Equity	12,813,000	6,640,000	1,044,000	1,562,000
Gains Losses Not Affecting Retained Earnings	-652,000	-1,129,000	-477,000	-718,000
Other Equity Adjustments	-652,000	-1,129,000	-477,000	-718,000
Treasury Stock	95,971,000	95,971,000	95,372,000	87,298,000
Retained Earnings	94,537,000	89,533,000	83,656,000	76,896,000
Additional Paid In Capital	14,809,000	14,117,000	13,147,000	12,592,000
Capital Stock	90,000	90,000	90,000	90,000
Common Stock	90,000	90,000	90,000	90,000
Total Liabilities Net Minority Interest	92,282,000	89,479,000	75,486,000	74,883,000
Total Non Current Liabilities Net Minority Interest	59,858,000	60,818,000	53,471,000	51,773,000
Other Non Current Liabilities	2,512,000	2,738,000	2,783,000	2,566,000
Non Current Deferred Liabilities	2,845,000	1,962,000	863,000	1,019,000
Non Current Deferred Taxes Liabilities	2,845,000	1,962,000	863,000	1,019,000
Long Term Debt And Capital Lease Obligation	54,501,000	56,118,000	49,825,000	48,188,000
Long Term Capital Lease Obligation	8,160,000	7,633,000	7,082,000	6,226,000
Long Term Debt	46,341,000	48,485,000	42,743,000	41,962,000
Current Liabilities	32,424,000	28,661,000	22,015,000	23,110,000
Current Deferred Liabilities	2,575,000	2,610,000	2,762,000	3,064,000
Current Deferred Revenue	2,575,000	2,610,000	2,762,000	3,064,000
Current Debt And Capital Lease Obligation	10,849,000	6,172,000	2,418,000	2,176,000
Current Capital Lease Obligation	1,418,000	1,274,000	1,050,000	945,000
Current Debt	9,431,000	4,898,000	1,368,000	1,231,000
Other Current Borrowings	4,967,000	4,582,000	1,368,000	1,231,000
Commercial Paper	4,464,000	316,000	0	0
Payables And Accrued Expenses	19,000,000	19,879,000	16,835,000	17,870,000
Current Accrued Expenses	6,887,000	6,481,000	6,321,000	5,849,000
Payables	12,113,000	13,398,000	10,514,000	12,021,000
Total Tax Payable	622,000	1,460,000	477,000	578,000
Income Tax Payable	114,000	832,000	28,000	50,000
Accounts Payable	11,491,000	11,938,000	10,037,000	11,443,000
Total Assets	105,095,000	96,119,000	76,530,000	76,445,000
Total Non Current Assets	70,704,000	64,436,000	46,755,000	43,974,000
Other Non Current Assets	806,000	684,000	656,000	3,958,000
Non Current Deferred Assets					344,000
Non Current Deferred Taxes Assets					344,000
Financial Assets					58,000
Goodwill And Other Intangible Assets	32,673,000	28,458,000	12,061,000	7,444,000
Other Intangible Assets	10,329,000	8,983,000	3,606,000	3,323,000
Goodwill	22,344,000	19,475,000	8,455,000	7,444,000
Net PPE	37,225,000	35,294,000	34,038,000	32,572,000
Accumulated Depreciation	-31,446,000	-29,081,000	-27,103,000	-26,644,000
Gross PPE	68,671,000	64,375,000	61,141,000	59,216,000
Leases	2,571,000	2,423,000	2,254,000	2,130,000
Construction In Progress	1,654,000	1,521,000	1,192,000	1,297,000
Other Properties	13,337,000	12,637,000	11,971,000	11,076,000
Machinery Furniture Equipment	20,289,000	18,474,000	16,667,000	16,564,000
Buildings And Improvements	21,321,000	20,260,000	20,030,000	19,430,000
Land And Improvements	9,499,000	9,060,000	9,027,000	8,719,000
Current Assets	34,391,000	31,683,000	29,775,000	32,471,000
Other Current Assets	1,588,000	1,670,000	1,711,000	1,511,000
Inventory	25,817,000	23,451,000	20,976,000	24,886,000
Finished Goods	25,817,000	23,451,000	20,976,000	24,886,000
Receivables	5,597,000	4,903,000	3,328,000	3,317,000
Other Receivables	567,000	584,000	575,000	495,000
Accounts Receivable	5,030,000	4,319,000	2,753,000	2,822,000
Cash Cash Equivalents And Short Term Investments	1,389,000	1,659,000	3,760,000	2,757,000
Cash And Cash Equivalents	1,389,000	1,659,000	3,760,000	2,757,000

Cash Flow

	2026	2025	2024	2023	2022
Free Cash Flow	12,646,000	16,325,000	17,946,000	11,496,000
Repurchase Of Capital Stock	0	-649,000	-7,951,000	-6,696,000
Repayment Of Debt	-5,040,000	-1,536,000	-1,271,000	-2,491,000
Issuance Of Debt	2,161,000	10,010,000	1,995,000	6,942,000
Issuance Of Capital Stock	314,000	395,000	323,000	264,000
Capital Expenditure	-3,679,000	-3,485,000	-3,226,000	-3,119,000
Interest Paid Supplemental Data	2,405,000	2,199,000	1,809,000	1,449,000
Income Tax Paid Supplemental Data	4,848,000	3,653,000	5,023,000	5,435,000
End Cash Position	1,389,000	1,659,000	3,760,000	2,757,000
Beginning Cash Position	1,659,000	3,760,000	2,757,000	2,343,000
Effect Of Exchange Rate Changes	99,000	-186,000	3,000	-68,000
Changes In Cash	-369,000	-1,915,000	1,000,000	482,000
Financing Cash Flow	-7,714,000	-694,000	-15,443,000	-10,993,000
Cash Flow From Continuing Financing Activities	-7,714,000	-694,000	-15,443,000	-10,993,000
Net Other Financing Charges	-145,000	-301,000	-156,000	-188,000
Cash Dividends Paid	-9,152,000	-8,929,000	-8,383,000	-7,789,000
Common Stock Dividend Paid	-9,152,000	-8,929,000	-8,383,000	-7,789,000
Net Common Stock Issuance	314,000	-254,000	-7,628,000	-6,432,000
Common Stock Payments	0	-649,000	-7,951,000	-6,696,000
Common Stock Issuance	314,000	395,000	323,000	264,000
Net Issuance Payments Of Debt	1,269,000	8,790,000	724,000	3,416,000
Net Short Term Debt Issuance	4,148,000	316,000	0	-1,035,000
Net Long Term Debt Issuance	-2,879,000	8,474,000	724,000	4,451,000
Long Term Debt Payments	-5,040,000	-1,536,000	-1,271,000	-2,491,000
Long Term Debt Issuance	2,161,000	10,010,000	1,995,000	6,942,000
Investing Cash Flow	-8,980,000	-21,031,000	-4,729,000	-3,140,000
Cash Flow From Continuing Investing Activities	-8,980,000	-21,031,000	-4,729,000	-3,140,000
Net Other Investing Changes	109,000	98,000	11,000	-21,000
Net Business Purchase And Sale	-5,410,000	-17,644,000	-1,514,000	0
Purchase Of Business	-5,410,000	-17,644,000	-1,514,000	0
Capital Expenditure Reported	-3,679,000	-3,485,000	-3,226,000	-3,119,000
Operating Cash Flow	16,325,000	19,810,000	21,172,000	14,615,000
Cash Flow From Continuing Operating Activities	16,325,000	19,810,000	21,172,000	14,615,000
Change In Working Capital	-2,666,000	694,000	2,088,000	-6,102,000
Change In Other Working Capital	357,000	-150,000	-563,000	-388,000
Change In Other Current Assets	124,000	86,000	-184,000	-311,000
Change In Payables And Accrued Expense	-1,756,000	1,327,000	-1,436,000	-2,684,000
Change In Payable	-1,756,000	1,327,000	-1,436,000	-2,684,000
Change In Account Payable	-1,058,000	518,000	-1,411,000	-2,577,000
Change In Tax Payable	-698,000	809,000	-25,000	-107,000
Change In Income Tax Payable	-698,000	809,000	-25,000	-107,000
Change In Inventory	-1,498,000	-743,000	4,137,000	-2,830,000
Change In Receivables	107,000	174,000	134,000	111,000
Other Non Cash Items	192,000	107,000	314,000	271,000
Stock Based Compensation	522,000	442,000	380,000	366,000
Deferred Tax					-276,000
Deferred Income Tax					-276,000
Depreciation Amortization Depletion	4,121,000	3,761,000	3,247,000	2,975,000
Depreciation And Amortization	4,121,000	3,761,000	3,247,000	2,975,000
Amortization Cash Flow	607,000	425,000	186,000	179,000
Amortization Of Intangibles	607,000	425,000	186,000	179,000
Depreciation	3,514,000	3,336,000	3,061,000	2,796,000
Net Income From Continuing Operations	14,156,000	14,806,000	15,143,000	17,105,000

These metrics estimate what The Home Depot, Inc. is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$64.18

Margin of Safety

Market Cap ÷ Company Value

4.62

P/B Ratio

24.37

Warren's Owner Earnings

$22.0B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

3/7 — Speculative Investor

✅ Adequate Size

$164.7B

vs > $1.5B revenue

❌ Strong Financial Condition

1.06x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

2.85%

vs Uninterrupted dividends

❌ Earnings Growth

-14.7% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

22.0x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

24.37x P/B (P/E×P/B: 537.1)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-58.12

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$233.04

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2026	2025	2024	2023	2022
Capital Expenditure % of Net Income	26.0%	23.5%	21.3%	18.2%	N/A
Repurchase of Capital Stock	$0M	-$649M	-$8.0B	-$6.7B	N/A
Free Cash Flow	$12.6B ▼	$16.3B ▼	$17.9B ▲	$11.5B •	N/A •
Warren's Owner Earnings	$22.0B	$22.1B	$21.6B	$23.2B	N/A

Peers & Industry

No auto-detected peers for Home Improvement Retail. You can manually compare HD against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.07%

Low — management has little skin in the game

Return on Equity (ROE)

110.5%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

13.5%

Strong — management uses assets efficiently

Debt Trend YoY

+4.9% YoY

Debt is roughly stable

Leadership Team

Edward Decker

Chairman, President & CEO

Age 62

Pay: $4,208,959

0.030% of net income

Richard McPhail

Executive VP & CFO

Age 53

Pay: $1,970,303

0.014% of net income

Ann-Marie Campbell

Senior Executive Vice President

Age 59

Pay: $2,384,292

0.017% of net income

Jordan Broggi

Executive VP of Customer Experience & President of Online

Age 41

Pay: $1,482,008

0.010% of net income

William Bastek

Executive Vice President of Merchandising

Age 58

Pay: $1,593,452

0.011% of net income

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	10.00%	99,635,779
Blackrock Inc.	7.72%	76,862,995
State Street Corporation	4.71%	46,925,342
Geode Capital Management, LLC	2.39%	23,756,142
Morgan Stanley	2.22%	22,113,754
Bank of America Corporation	1.61%	16,063,532
Charles Schwab Investment Management, Inc.	1.55%	15,471,132
NORGES BANK	1.42%	14,095,697

⚠️ Very high debt-to-equity — leverage risk

Risk Analysis

Beta (Market Risk)

1.00

Low volatility — more stable than the market

Short Interest

1.4% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

5.14x

High leverage — significant financial risk

Current Ratio