HDThe Home Depot
Is the business good?
The checks split: earnings fully cash-backed (1.2×), but margins compressing and returns that lean on debt.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 104% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is HD?
The Home Depot earns 25% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 16 points above what the capital costs: growth creates value
- Operating margin
- 12%
Operating margin · Consumer Cyclical median 7.8% · 12 months to Q2 2026
- Cash conversion
- 1.18×
Cash conversion · 1.09× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.20%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 14% |
| FY2021 | 15% |
| FY2022 | 15% |
| FY2023 | 14% |
| FY2024 | 13% |
| FY2025 | 13% |
Details›
- Gross margin12 months to Q2 2026
- 33%
- Operating margin12 months to Q2 2026
- 12%
- Net margin12 months to Q2 2026
- 8.4%
- Free cash flow margin
- 8.9%
- Revenue, trailing twelve months
- $169.2B
- Free cash flow, trailing twelve months
- $15.1B
- Net income, trailing twelve months
- $14.2B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 25%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from HD and who it buys from, as the companies report it.
None disclosed.
- SMGThe Scotts Miracle-Gro Company34%
HD is 34% of its revenue · FY2025 10-K
- HLMNHillman Solutions Corp.23%
HD is 23% of its revenue · FY2025 10-K
- UFPIUFP Industries, Inc.17%
HD is 17% of its revenue · FY2025 10-K
- CENTCentral Garden & Pet Company16%
HD is 16% of its revenue · FY2025 10-K
- SWKStanley Black & Decker15%
HD is 15% of its revenue · FY2025 10-K
- MBCMasterBrand, Inc.13%
HD is 13% of its revenue · FY2025 10-K
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; HD’s own figures are from its FY2025 10-K. Smaller customers and suppliers go unreported.
Consumer Cyclical
Ranks #96 of 298 by RyuScore