The Home Depot, Inc. (HD)

FairStock Score: 59/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Home Depot is the kind of durable retailer I admire: it sells essential repair and improvement goods at scale. In fiscal Q2 2026, the quarter ended 2026-08-02, revenue was $47.9B, net income $4.8B, and diluted EPS $4.79. For FY2025, the year ended 2026-02-01, revenue was $164.7B, net income $14.2B, and diluted EPS $14.23; compare that with FY2024, the year ended 2025-02-02, revenue $159.5B, net income $14.8B, and EPS $14.91. Sales grew about 3.3%, but profit and EPS fell about 4%. FairStock's Lynch rule calls it a slow grower: profit up 1.9% a year and revenue up 4.5% over five years. Quality is still evident: FairStock calculates ROCE of 12.14%, Piotroski 8/9, Altman Z 3.82, and trailing FCF of $15.1B. Yet the balance sheet uses heavy leverage, with D/E 3.80 and P/B 17.65, so ROE of 104.30% is flattered by debt. At the 2026-10-13 close of $293.92, FairStock shows P/E 20.58, EV/EBITDA 13.89, dividend yield 3.11%, FCF yield 5.1%, and PEG 4.36. The Graham Number is $73.14, leaving a margin of safety of -301.86%. That is not a Graham bargain. The scale and store network give it a moat, but the home-improvement market is cyclical and tied to housing activity. The dividend yield of 3.11% and beta of 0.95 make it steadier than many retailers, and the Piotroski score of 8/9 suggests accounting quality remains solid. Still, with PEG 4.36, the market is paying for growth that the filed results have not delivered recently. Great business, slow growth, full price.

In plain English: Home Depot sells building materials, tools, lawn and garden items, and home services through a huge store network. The business is profitable and produces a lot of cash, but sales and profits are growing slowly and it carries a lot of debt. At the recent stock price, the shares look expensive compared with the company's assets and cautious value measures.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-08-02) · fiscal Q1 2026 10-Q (period ended 2026-05-03) · fiscal Q3 2025 10-Q (period ended 2025-11-02) · fiscal Q2 2025 10-Q (period ended 2025-08-03) · FY2025 10-K (period ended 2026-02-01) · FY2024 10-K (period ended 2025-02-02) · FY2023 10-K (period ended 2024-01-28)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer