Home Depot Stock Analysis, Valuation (NYSE:HD)

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$200.97 $0.13 (0.06%) HD stock closing price Jul 18, 2018 (Closing)

Watch the robo advisor video of Home Depot stock analysis on Amigobulls. This is our analyst opinion covering the buy and sell arguments for HD stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Home Depot Inc Stock Rating 3.2/5

Amigobulls HD stock analysis uses latest quarter 2019 Q1 financial data like Home Depot revenue growth, profit margins and cash flows. We compare Home Depot valuation with its sector peers to gauge relative attractiveness of HD stock. Home Depot stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy HD stock?

  • The TTM operating margin was good at 14.43 for Home Depot.
  • Net margins stood at a healthy 8.8% (average) for Home Depot in the Trailing Twelve Months.
  • The company has an operating cash flow which is 1.656 times the net income.
  • Home Depot's return on invested capital of 36.9 is good.
  • The LTM ROE of 341.7 for Home Depot is attractive.
  • The company has a healthy free cash flow margin of 13.8.

Should you sell HD stock?

  • With a debt/equity ratio of 15.29, Home Depot is highly leveraged in comparison to Retail-Wholesale peers.
  • The company is trading at a price to sales multiple of 2.3, which is higher in comparison to the Retail-Wholesale sector average of 0.8, making HD stock expensive.

Comments on this video and Home Depot stock

Amigobulls Home Depot stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. The fundamentals of a company are vital to identify long-term investment opportunities.

Among the financials of the company, Home Depot revenue growth along with the profit or net income give a clear picture of the financial health. Investors could make use of HD technical analysis to check whether the fundamental story is reflected in the market sentiment.