The Home Depot, Inc. [NYSE:HD]: Analyst Rating and Earnings
Stock market traders frequently keep their eyes on what Wall Street experts as it relates to a potential investment. For The Home Depot, Inc. [HD], the most recent analyst consensus recommendation available since its latest financial results for the quarter ending in January. On average, stock market experts give HD an Outperform rating. Its stock price has been found in the range of 158.09 to 215.43. This is compared to its latest closing price of $204.86.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for The Home Depot, Inc. [HD] is sitting at 1.94. This is compared to 1 month ago, when its average rating was 1.94.
For the quarter ending in Jan-19 The Home Depot, Inc. [HD] generated $26.49 billion in sales. That’s 0.31% lower than the average estimate of $26.57 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep your eyes peeled for the soon-to-be-published financial results of this company, which are expected to be made public on Tue 21 May (In 35 Days).
Fundamental Analysis of The Home Depot, Inc. [HD]
Now let’s turn to look at profitability: with a current Operating Margin for The Home Depot, Inc. [HD] sitting at +14.58 and its Gross Margin at +32.61, this company’s Net Margin is now 10.30%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 56.54, and its Return on Invested Capital has reached 44.00%. Its Return on Assets is 25.12.
Similarly, its Total Debt to Total Capital is 106.87, while its Total Debt to Total Assets stands at 66.36.
What about valuation? This company’s Enterprise Value to EBITDA is 13.97 and its Total Debt to EBITDA Value is 1.63. The Enterprise Value to Sales for this firm is now 2.31, and its Total Debt to Enterprise Value stands at 0.12.
Shifting the focus to workforce efficiency, The Home Depot, Inc. [HD] earns $261,993 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 55.66 and its Total Asset Turnover is 2.44. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.28 and its Current Ratio is 1.11. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
The Home Depot, Inc. [HD] has 1.12B shares outstanding, amounting to a total market cap of $228.62B. Its stock price has been found in the range of 158.09 to 215.43. At its current price, it has moved by -4.47% from its 52-week high, and it has moved 30.19% from its 52-week low.
This stock’s Beta value is currently 1.09, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 72.19. This RSI suggests that The Home Depot, Inc. is currently Overbought.
Conclusion: Is The Home Depot, Inc. [HD] a Reliable Buy?
The Home Depot, Inc. [HD] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.