NYSE:HD
HOME DEPOT, INC.
A dominant home improvement retailer offering building materials, home improvement products, and garden supplies to both DIY homeowners and professional contractors.
Key Metrics
Investment Thesis
Bull Case
Home Depot offers a defensive growth profile with consistent cash generation of nearly $20B annually and significant share repurchases totaling $649M, making it attractive for income-focused investors seeking stability in the retail sector.
Bear Case
The stock faces headwinds from high debt levels evidenced by $89.48B total liabilities and declining net income trends over the last two years which may signal a slowdown in comparable store sales or increased competition.
About HOME DEPOT, INC.
Home Depot Inc. (NYSE:HD) is the world's largest home improvement retailer, serving residential and professional customers across North America with a vast network of stores and online platforms.
Analysis
Management Discussion
While revenue rebounded to $159.51B in 2025 after a dip in 2024, net profit declined slightly to $14.81B reflecting the margin pressure seen in 2024's $15.14B earnings.
Industry Overview
The home improvement industry is cyclical and heavily influenced by housing starts, interest rates, and consumer confidence, requiring retailers like Home Depot to navigate inventory levels of $23.45B carefully to maintain profitability.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $157.40B | $152.67B | $159.51B |
| Cost of Revenue | $104.62B | $101.71B | $106.21B |
| Gross Profit | $52.78B | $50.96B | $53.31B |
| Operating Expenses | $28.74B | $29.27B | $31.78B |
| Operating Income | $24.04B | $21.69B | $21.53B |
| G&A | $26.28B | $26.60B | $28.75B |
| Stock-Based Comp | $366.0M | $380.0M | $442.0M |
| D&A | $2.98B | $3.25B | $3.34B |
| Amortization | — | — | $425.0M |
| Other OpEx | $2.46B | $2.67B | $3.03B |
| Non-Operating Income | $-1.56B | $-1.76B | $-2.12B |
| Interest Expense | $1.62B | $1.94B | — |
| Pre-Tax Income | $22.48B | $19.92B | $19.41B |
| Income Tax | $5.37B | $4.78B | $4.60B |
| Continuing Ops | $17.11B | $15.14B | $14.81B |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $17.11B | $15.14B | $14.81B |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $17.11B | $15.14B | $14.81B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $32.47B | $29.77B | $31.68B |
| Cash & Equivalents | $2.76B | $3.76B | $1.66B |
| Accounts Receivable | $3.32B | $3.33B | $4.90B |
| Inventory | $24.89B | $20.98B | $23.45B |
| Other Current Assets | $1.51B | $1.71B | $1.67B |
| Long-Term Assets | $43.97B | $46.76B | $64.44B |
| PP&E (Net) | $25.63B | $26.15B | $26.70B |
| Intangibles | $3.32B | $3.61B | $8.98B |
| Goodwill | $7.44B | $8.46B | $19.48B |
| Operating Leases | $6.94B | $7.88B | $8.59B |
| Other LT Assets | $635.0M | $656.0M | $684.0M |
| Total Assets | $76.44B | $76.53B | $96.12B |
| Current Liabilities | $23.11B | $22.02B | $28.66B |
| Accounts Payable | $11.44B | $10.04B | $11.94B |
| Current Leases | $945.0M | $1.05B | $1.27B |
| Deferred Revenue | $2.00B | $1.70B | $1.50B |
| Taxes Payable | $50.0M | $28.0M | $832.0M |
| Other Current Liab | $8.67B | $9.20B | $13.12B |
| Long-Term Liabilities | $51.77B | $53.47B | $60.82B |
| LT Operating Leases | $6.23B | $7.08B | $7.63B |
| Other LT Liab | $45.55B | $46.39B | $52.87B |
| Total Liabilities | $74.88B | $75.49B | $89.48B |
| Shareholders' Equity | $1.56B | $1.04B | $6.64B |
| Retained Earnings | $76.90B | $83.66B | $89.53B |
| AOCI | $-718.0M | $-477.0M | $-1.13B |
| Treasury Stock | $87.30B | $95.37B | $95.97B |
| Total L&E | $76.44B | $76.53B | $96.12B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $17.11B | $15.14B | $14.81B |
| Non-Cash Adjustments | $-1.90B | $11.94B | $3.48B |
| Working Capital Changes | $-589.0M | $-5.91B | $1.52B |
| Cash from Operations | $14.62B | $21.17B | $19.81B |
| Cash from Investing | $-3.14B | $-4.73B | $-21.03B |
| Share Buybacks | $6.70B | $7.95B | $649.0M |
| Dividends Paid | $7.79B | $8.38B | $8.93B |
| Cash from Financing | $-10.99B | $-15.44B | $-694.0M |
| FX Effect | $-68.0M | $3.0M | $-186.0M |
| Net Change in Cash | $482.0M | $1.00B | $-1.92B |
| Beginning Cash | $2.34B | $2.76B | $3.76B |
| Ending Cash | $2.76B | $3.76B | $1.66B |
Frequently Asked Questions
How does HOME DEPOT, INC. make money?
Revenue is primarily derived from retail operations including lumber, building materials, tools, appliances, paint, and seasonal merchandise sold directly to consumers and through a growing online channel.
What are the main risks for HD?
Investors should monitor sensitivity to residential construction cycles, inflationary pressures impacting operating margins on a $159.51B revenue base, rising logistics costs affecting the $19.81B cash flow from operations, and potential shifts in consumer discretionary spending patterns.
What is HD's competitive advantage?
The company benefits from an extensive physical store footprint providing immediate product availability, superior supply chain efficiency managing over $106B in cost of revenue, and strong customer loyalty driven by competitive pricing and service.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.