The Home Depot

Home Improvement · Consumer Cyclical

Price

$335.61

+1.12 (+0.33%)

Market Cap

$334.64B

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through May 3, 2026

How the score breaks down

Quality

Good

Growth

Weak

Cash Flow

Strong

Stability

Mixed

Valuation

Good

Dividends

Mixed

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Share count falling — buybacks

−5.8% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 1.06B (2022) → 997.0M (2026)

Winston Score History

The full picture

Home Depot is the largest home improvement retailer in the world. It sells tools, lumber, appliances, paint, flooring, and thousands of other products used to build, fix, or upgrade homes. Its customers include everyday homeowners doing weekend projects and professional contractors who buy in large volumes.

The company makes money by selling products in its roughly 2,300 stores across the United States, Canada, and Mexico, plus through its website. Contractors and construction pros make up a growing share of sales, and Home Depot has invested heavily to serve that group better than competitors like Lowe's. The biggest risk the business faces is a slowdown in the housing market — when people stop buying and selling homes, they tend to spend less on renovations, which directly hurts Home Depot's sales.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-3.8% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-14.2% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

0.2%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$1.4B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

The Home Depot's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

33.0%

Modest — 33.0% gross margin

Profit after running costs

Operating Margin

11.9%

Modest — 11.9% operating margin

Return on the money invested

ROCE

33.3%

Exceptional — 33.3% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth

Sales YoY

+2.2%

Nearly flat sales (+2.2% YoY)

Profit growth

EPS YoY

-4.4%

Earnings shrinking (-4.4% YoY)

Slight earnings drop. Typical near a cyclical low.

How steady the profit is

EPS Consistency

1/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

129%

Turns 129% of profit into real cash

Spare cash per sale

FCF Margin

8.6%

Modest free cash flow (8.6%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

3.48

Heavy debt load (3.48)

Covers its interest

Interest Cover

8.61x

Comfortably covers interest (8.6x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

23.8x

Growth-priced — P/E 23.8

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year

P/E vs Forward

+3.8

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (23.8 → 20.0)

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Dividends

Dividend

Dividend Yield

2.65%

Moderate income — 2.65% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record

Dividend Growth

+1.8%

Dividend flat

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