HD Analysis — TradeApes

HOME DEPOT, INC. (HD)

$332.86 close · Apr 09, 2026

≈ Fairly Valued (40/100)

Health Score

Out of 100

Mixed

Pillar Scores

Financial Strength 60

Operating Trend 60

Valuation 55

Capital Allocation 55

Risk 70

Positives

↑ Free cash flow positive — business generates real spendable cash +2.5

↑ High ROIC — above 20%, excellent return on invested capital +2.5

↑ Decent FCF yield — 4–7%, reasonable cash return on price paid +1.3

Concerns

↓ Altman Z-Score in grey zone — uncertain financial stability -1.0

Signal contribution: +7.1 from strengths -1.0 from concerns

Health Score Trend 8 snapshots

Financials

TTM Financials

Revenue ?Total sales generated from the company's primary business activities over the trailing twelve months.	164.68B
Gross Profit ?Revenue minus cost of goods sold. What remains before operating expenses — reflects pricing power and production efficiency.	54.87B
Operating Income ?Profit from core business operations after all operating expenses (EBIT). Excludes interest and taxes.	20.89B
Net Income ?Bottom-line profit after all expenses, interest, and taxes are deducted from revenue.	14.16B
Free Cash Flow ?Operating cash flow minus capital expenditures. The actual cash the business generates after maintaining its assets — the truest measure of profitability.	16.33B
EBITDA ?Earnings before interest, taxes, depreciation & amortization. A proxy for operating cash earnings that strips out accounting and financing differences.	24.40B
Total Debt ?Combined short-term and long-term interest-bearing debt obligations. Compare against cash and earnings to gauge leverage risk.	49.40B
Cash & Equivalents ?Highly liquid assets on hand — cash, money market funds, and short-term securities. The company's immediate financial cushion.	1.39B

Valuation

Market Cap	331.19B
Enterprise Value	379.20B
EV / Revenue	2.3x
EV / EBITDA	15.5x
P/E (TTM)	23.4x
Forward P/E (extrapolated)	12.9x
PEG	0.3x
P/FCF	20.3x
FCF Yield	4.9%

DCF Fair Value Range (base CAGR: 6.6%)

Bear

$333.76

Base

$415.80

Bull

$513.85

Bear $334 Current $332.86 (below range) Bull $514

Market is pricing in 3.3% FCF growth annually — base model assumes 6.6%

Key Metrics

Gross Margin ?Gross profit as a % of revenue. Measures how efficiently the company produces its goods or services — higher is better.	33.3%
EBITDA Margin ?EBITDA as a % of revenue. Shows core operating profitability before accounting adjustments — useful for comparing across industries.	14.8%
Net Margin ?Net income as a % of revenue. The ultimate measure of overall profitability after every expense, interest payment, and tax is accounted for.	8.6%
FCF Margin ?Free cash flow as a % of revenue. Shows how much of each dollar of revenue converts into real, spendable cash.	9.9%
Revenue Growth (YoY) ?Year-over-year change in total revenue. Measures business momentum — sustained growth above 15% is typically considered strong.	37.5%
Net Income Growth (YoY) ?Year-over-year change in net income. Shows whether profits are growing faster or slower than revenue — a key indicator of improving or deteriorating quality.	19.9%
Piotroski F-Score ?Score from 0–9 measuring financial strength across profitability, leverage, and efficiency signals. 8–9 = strong, 0–2 = distressed.	6 / 9
Altman Z-Score ?Bankruptcy risk model. Above 2.99 = safe zone, 1.81–2.99 = grey zone, below 1.81 = distress signal. Most useful for manufacturing companies.	2.50

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Quarterly Financials

Metric	Q4 '25	Q3 '25	Q2 '25	Q1 '25	Q4 '25	Q3 '25	Q2 '25	Q1 '24	Q4 '23	Q3 '23	Q2 '23	Q1 '24
Revenue ?Total quarterly sales from primary business operations.	38.20B	41.35B	45.28B	39.86B	—	40.22B	43.18B	36.42B	34.79B	37.71B	42.92B	37.26B
Gross Profit ?Quarterly revenue minus cost of goods sold.	12.47B	13.82B	15.13B	13.46B	—	13.43B	14.42B	12.43B	11.51B	12.74B	14.16B	12.56B
Operating Income ?Quarterly profit from core operations before interest and taxes (EBIT).	3.85B	5.35B	6.56B	5.13B	—	5.42B	6.53B	5.08B	4.14B	5.41B	6.59B	5.55B
Net Income ?Quarterly bottom-line profit after all expenses and taxes.	2.58B	3.60B	4.55B	3.43B	—	3.65B	4.56B	3.60B	2.80B	3.81B	4.66B	3.87B
FCF ?Quarterly free cash flow: operating cash minus capital expenditures.	12.00B	—	—	4.33B	—	—	—	5.50B	15.56B	—	—	5.61B

Revenue & Free Cash Flow

Market Cap vs. DCF Fair Value Band

Shaded region = bear-to-bull DCF range. Line = actual market cap.

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Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Scores and valuations are derived from SEC filings and publicly available data. Always do your own research before making investment decisions.