# The Home Depot, Inc. (HD)

> Home Depot sells home-improvement products and building materials, and provides installation and equipment-rental services.

- Exchange: NYSE · Sector: Consumer Discretionary · Industry: Home Improvement Retail
- Headquarters: Atlanta, Georgia, United States
- Founded: 1978
- Employees: 472,400 (end of fiscal 2025)
- SEC CIK: 0000354950 ([filings on EDGAR](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000354950))
- Full page: https://inspectstocks.com/stocks/hd
- Data as of: price 2026-09-28; newest filing used 2026-08-25; latest fiscal period ended 2026-08-02

## Grade

**B** on the growth-and-cash rubric, 4 of 5 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Revenue growing overall | passed | $169.2B | $154.9B |
| Revenue growing recently | passed | $169.2B | $164.7B |
| Free cash flow positive | passed | $15.1B |  |
| Free cash flow growing overall | failed | $15.1B | $16.3B |
| Free cash flow growing recently | passed | $15.1B | $12.6B |

Business quality (the + / − mark): 3 of 6 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Profitable | passed | 8.4% |  |
| Healthy profit margin | failed | 8.4% |  |
| Strong operating margin | failed | 12.4% |  |
| Good return on equity | passed | 111.0% |  |
| Debt under control | failed | 5.33 |  |
| Turns sales into cash | passed | 8.9% |  |

How the grade works: the letter counts failed checks (none → A, one → B, two → C, three → D, four or more → F). It is built from SEC filings only — the share price never enters it — and describes the business, not whether the stock is worth buying.

## Key figures

In US dollars, as filed.

| Measure | Value |
| --- | --- |
| Revenue, trailing twelve months | $169.2B |
| Net income, trailing twelve months | $14.2B |
| Free cash flow, trailing twelve months | $15.1B |
| Net margin | 8.4% |
| Operating margin | 12.4% |
| Return on equity | 111.0% |
| Debt to equity | 5.33 |
| Diluted EPS, trailing twelve months | $14.29 |
| Share price | $289.83 |
| Market value | $289.2B |
| Price / earnings | 20.3x |
| Price / sales | 1.7x |

## What the business does

Home Depot sells products such as lumber, paint, appliances, plumbing supplies, tools, and garden plants through stores and websites. Its customers include homeowners doing their own projects, professional tradespeople and contractors, and businesses that maintain buildings. The company also sells building supplies through specialty distribution businesses and arranges home installation work and tool rentals.

### How it makes money

- **Primary segment: home-improvement retail sales through stores and websites in the United States, Canada, and Mexico** (90.4% (quarter ended 2026-04-30)) — Customers pay for merchandise in stores or online; online orders can be delivered or picked up at a store.
- **All Other segment: specialty building-products distribution and maintenance, repair, and operations supplies** (9.6% (quarter ended 2026-04-30)) — Professional customers buy building materials through businesses including SRS and GMS, and maintenance supplies through HD Supply.

### Products

- **Building materials and lumber** — Materials such as lumber, drywall, roofing supplies, ceilings, and steel framing for repairs and construction.
- **Tools, hardware, and electrical supplies** — Hand and power tools, fasteners, lighting, wiring, and other supplies used in home projects and trade work.
- **Plumbing, bath, kitchen, and appliances** — Fixtures, cabinets, countertops, appliances, and related products for kitchens, bathrooms, and home repairs.
- **Paint, flooring, and home décor** — Paint, floor coverings, window coverings, and decorative products for homes and other buildings.
- **Lawn and garden products** — Plants, landscaping supplies, pool supplies, and outdoor power equipment.
- **Installation and tool-rental services** — Homeowners can arrange installation work, including flooring, windows, cabinets, and heating and air-conditioning systems; customers can also rent tools and equipment at many locations.

### Customers

- Homeowners doing projects themselves buy products in stores or online and can use store advice, digital project information, and workshops.
- Professional renovators, remodelers, general contractors, and homebuilders buy supplies for residential and commercial jobs, through stores, online, sales staff, and delivery to job sites.
- Specialty tradespeople, including roofers, landscapers, pool contractors, electricians, plumbers, and drywall installers, buy trade-specific products through stores and specialty distribution branches.
- Homeowners hiring professionals can arrange installation work in stores, online, or through in-home consultations.
- Property managers, building-service contractors, and organizations such as hospitals, hotels, and government housing facilities buy maintenance supplies and related services, primarily through HD Supply.

### Competitors

- Lowe's Companies, Inc. (LOW) — Home-improvement products, building materials, appliances, and related services sold in stores and online.
- Amazon.com, Inc. (AMZN) — Online sales of home-improvement products, tools, appliances, and household goods.
- Builders FirstSource, Inc. (BLDR) — Building materials and related supplies sold to professional builders and contractors.
- Menards — Home-improvement and building-materials retail, including lumber, tools, and household products.

### What it depends on

- Sales depend in part on home-improvement activity, which the company says can be affected by housing affordability, home sales, customer confidence, and weather.
- The company relies on suppliers in the United States and other countries for merchandise, including products sold under its own and exclusive brands.
- Its store, website, delivery, and order-fulfillment operations rely on functioning technology systems and distribution networks.
- The specialty distribution business includes acquired companies such as SRS and GMS, making the operation and integration of those businesses relevant to serving professional customers.

### What could go wrong

- Weakness in housing or home-improvement demand—including pressure from housing costs, low home sales, or customer uncertainty—could reduce purchases, especially for larger projects.
- Competition from home-improvement retailers, online sellers, distributors, and local suppliers could put pressure on prices, customer demand, and sales.
- Supplier problems, trade-policy changes, or distribution disruptions could raise product costs or make merchandise harder to obtain and deliver.

## More on this company

- [Overview](https://inspectstocks.com/stocks/hd)
- [Financial statements](https://inspectstocks.com/stocks/hd/financials)
- [Competitors](https://inspectstocks.com/stocks/hd/peers)
- [Earnings](https://inspectstocks.com/stocks/hd/earnings)

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Source: InspectStocks, built from the company’s own SEC filings. This describes a business — it is not investment advice and not a recommendation to buy or sell anything.