Home Depot Intrinsic Value – HOME DEPOT Reports Q3 FY2024 Earnings Results for October 31, 2023
December 18, 2023
🌥️Earnings Overview
On October 31, 2023, HOME DEPOT ($NYSE:HD) reported its earnings results for the third quarter of FY2024, which ended on the same day. The company recorded total revenue of USD 37.7 billion, a decrease of 3.0% compared to the year prior. Net income was reported at USD 3.8 billion, which was 12.2% lower year-over-year.
Market Price
The increase in net income is largely due to higher operating margin and improved cost efficiency. Overall, the earnings report confirms HOME DEPOT’s positive performance and indicates that the company is well-positioned to continue its strong growth trajectory well into the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Home Depot. More…
| Total Revenues | Net Income | Net Margin |
| 153.71k | 15.7k | 10.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Home Depot. More…
| Operations | Investing | Financing |
| 21.03k | -4.04k | -17.37k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Home Depot. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 75.58k | 74.15k | 1.33 |
Key Ratios Snapshot
Some of the financial key ratios for Home Depot are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.0% | 8.2% | 14.6% |
| FCF Margin | ROE | ROA |
| 11.6% | 1051.7% | 18.6% |
Analysis – Home Depot Intrinsic Value
At GoodWhale, we’ve completed an analysis of HOME DEPOT‘s financials. After analyzing the company’s financials, we have determined that the intrinsic value of a HOME DEPOT share is around $332.7. This value was calculated using our proprietary Valuation Line. Currently, the HOME DEPOT stock is trading at $303.6, which is 8.7% undervalued. This means that it is currently a fair price for investors to purchase HOME DEPOT stock. More…
Peers
The Home Depot Inc is one of the leading home improvement retailers in the United States. The company operates more than 2,200 stores across the country. Lowe’s Companies Inc is another leading home improvement retailer in the United States. The company operates more than 1,700 stores across the country. Floor & Decor Holdings Inc is a leading specialty retailer of hard surface flooring in the United States. The company operates more than 100 stores across the country. Wayfair Inc is a leading online retailer of home furnishings and home décor products.
– Lowe’s Companies Inc ($NYSE:LOW)
Lowe’s Companies, Inc. is a home improvement company that operates stores in the United States, Canada, and Mexico. The company offers a wide variety of home improvement products, including appliances, tools, hardware, flooring, and more. Lowe’s is also involved in home improvement services, such as installation, repair, and remodeling. The company has a market cap of $114.17B and a return on equity of -99.39%.
– Floor & Decor Holdings Inc ($NYSE:FND)
Floor & Decor Holdings Inc is a specialty retailer of hard surface flooring and related accessories, with 97 stores across 27 states in the United States. The company offers a wide selection of ceramic tile, porcelain tile, natural stone, wood flooring, laminate, and vinyl flooring products. It also provides installation services for customers who purchase their products. Floor & Decor Holdings Inc has a market cap of 7.06B as of 2022, a Return on Equity of 14.88%.
– Wayfair Inc ($NYSE:W)
As of 2022, Wayfair Inc has a market cap of 3.37B and a Return on Equity of 29.2%. The company provides an online platform for home goods and furniture retailers. It operates through two segments, Direct and Marketplace. The Direct segment offers products through its own website. The Marketplace segment offers products through third-party websites.
Summary
HOME DEPOT reported its third quarter earnings for FY2024 on October 31, 2023 with total revenue of USD 37.7 billion, a 3.0% decrease compared to the same period the year prior. Net income was 12.2% lower, amounting to USD 3.8 billion. The stock price moved up the same day, suggesting investors remain optimistic about the company’s financial stability.
Analysts recommend keeping an eye on the company’s operating margin and free cash flow. Despite the decrease in revenue, HOME DEPOT’s strong balance sheet and financial ratios such as return on equity and working capital suggest a healthy outlook for investors.
