Home Depot logo

Invest Well in Home Depot Stock: Products, Dividend, Financial Statements, and More

2024-04-07 updated

When making long-term investments to ensure stability through diversified investments, it is recommended to prioritize ETFs that include Home Depot stocks. However, there might still be individuals who wish to invest directly in Home Depot stocks. Shall we also explore a value investing approach to assess whether Home Depot's performance will grow in the long term?

introduction image

Q. What products and services does Home Depot provide?

Home improvement
Gardening and garden
DIY and home decor
  • HD is the largest home improvement retailer in the US.
  • HD provides a variety of products and services for home improvement, gardening, DIY, and home decor.
  • Home improvement products include lumber, lighting, tools, plumbing, and electrical products.
  • Gardening and garden products include plants, soils, fertilizers, and weed killers.
  • DIY and home decor products include furniture, interior, and decorative items.

Q. Is Home Depot's executive CEO honest and competent?

Ted Decker
Ted Decker is the CEO of Home Depot.
  • Appointed as CEO of Home Depot in 2022.
  • Served as President and COO in 2020.
  • Served as Senior Vice President of Business Valuation for 20 years, Senior Vice President of Strategic Business Development, and Senior Vice President of Retail Finance.
  • Joined Home Depot as a business valuation analyst in 2000.
  • Worked in business development, strategic planning, and finance at Kimberly-Clark Corp. and Scott Paper Co.
  • MBA from Carnegie Mellon University.
  • BA in English from William and Mary University.

Q. Is Home Depot's financial statements healthy?

(2024년 04월 06일 기준)

Net Profit Margin

  • Home Depot has earned an annual net profit equivalent to 4.27% of the current stock price.
  • It's good to see that the net profit has been growing at an annual rate of 6.39% over the past 5 years.

Total Debt

  • The debt is 281.32% of the annual net profit.
  • It would take about 3 years for the company to repay all of its debt.
  • The net profit is growing, so Home Depot can repay the debt faster.

Dividend

  • Home Depot offers a 2.52% annual dividend.
  • Over the past 5 years, the annual average dividend has grown by 10.62%.
  • Dividends are growing, which is good.

Share Buyback

  • Apple recently repurchased its own shares equivalent to 2.24% of the stock price in the past year.

Q. What is Home Depot's stock performance like?

  • This year's total return is 25.79%.
  • 5-year mean total return is 15.56%.

Q. When is a good time to buy and sell Home Depot?

If Home Depot is healthy and growing, it will rise in the long run, so it is good to buy in installments even if you think the current stock price is a bit high. On the other hand, if you think that Home Depot is no longer healthy in the long run, you can consider selling.

PER

  • Current: 23.70
  • 5Y Avg: 21.46
  • The current value is higher than the average, so be careful when buying. However, purchasing can be considered only if you judge that the company will sustain high long-term growth.

Price/Sale Ratio

  • Current: 2.33
  • 5Y Avg: 2.19
  • Current value is higher than average so be careful when buying. However, purchasing can be considered only if you judge that the company will sustain high long-term growth.
#Long-term value investing in Home Depot#Intrinsic value of Home Depot#Introduction and analysis of stock#forecast#products#competitiveness#management CEO#financial statements#net income#debt#ROIC#dividend#treasury stock#return#PER#Price/Sale Ratio#philosophy#fundamental analysis
Value Investing Together is a blog and application that provides stock information for individuals interested in value investing and is not intended for investment recommendations. The information provided should only be used for reference purposes, and investment decisions should be made at one's own discretion and responsibility.