Stock Updates

Is this Large Market Cap Stock target price reasonable for The Home Depot, Inc. (NYSE:HD)?

The company in question is, The Home Depot, Inc. (NYSE:HD) currently with a stock price of 126.29 (0.14% today). The market cap for The Home Depot, Inc. is 157092.13, and is in the sector Services, and Home Improvement Stores industry. The target price for The Home Depot, Inc. is 150.55. Currently The Home Depot, Inc. is trading with a P/E of 21.3, and a forward P/E of 17.6. Average volume for The Home Depot, Inc. is 4386.46 and so far today it is 4467400.

Performance in the last year for The Home Depot, Inc. has been 11.94%. For EPS growth, The Home Depot, Inc. has seen a growth of 15.90%, and is looking to grow in the next year to 13.36%. More long term stats show that EPS growth has been 22.10% over the last five years and could be 13.95% for the next five years. The Home Depot, Inc. has seen sales growth quarter over quarter at 6.60%, with EPS growth quarter over quarter at 13.60%. The 20-day simple moving average is -5.85%, with the 200-day simple moving average coming to -2.29%.

Since the IPO date for The Home Depot, Inc. on the 9/22/1981, The Home Depot, Inc. has seen performance year to date to be -2.99%. With The Home Depot, Inc. trading at 126.29, the dividend yield is 2.19%, and the EPS is 5.93.

So could The Home Depot, Inc., be undervalued? Well as said before P/E is 21.3. The PEG is 1.53, P/S is 1.71 and the P/B is at 23.43. The P/cash is 39.1, with P/free cash flow at 28.03.

The Home Depot, Inc. ability to deal with debt shows that the current ratio is 1.3, and the quick ratio is 0.5. This is with long term debt/equity at 3.14, and total debt/equity at 3.15.

In terms of margins, The Home Depot, Inc. has a gross margin of 34.20%, an operating margin of 13.80% and a profit margin of 8.10%.Payout ratio for The Home Depot, Inc. is 43.00%. Return on assets come to 17.00% with return on investment coming to 28.20%.

Insider ownership for The Home Depot, Inc., is at 0.10% and institutional ownership comes to 73.60%. Outstanding shares are at 1243.9. While shares float is 1234.24. The float short is currently 0.85%, and short ratio is 2.4.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Tony Dabbs

Leave a Comment