Home Depot Stock Intrinsic Value – Home Depot and Lowe’s Prove to be Attractive Investment Options for Long-Term Buyers
April 5, 2023
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Home Depot ($NYSE:HD) and Lowe’s have proven to be attractive investment options for long-term buyers. Investors often view them as desirable stocks to hold for the long-term due to their steady growth and overall solid financial performances. HOME DEPOT is an American multinational home improvement retailer that sells building materials, home improvement products, and services. HOME DEPOT is known for its exceptional customer service and wide range of products, from tools and appliances to home decor and furniture. It has recently expanded its online presence in response to the global pandemic, providing virtual home improvement consultations, product recommendations, and more.
Share Price
Monday proved to be a positive day for investors in Home Depot, as the stock opened at $294.9 and closed at $297.7 – an increase of 0.9% from its previous closing price of 295.1. This surge in stock price follows a recent trend of increasing demand for Home Depot and Lowe’s stocks, making them attractive choices for long-term buyers. Analysts point to the companies’ consistent success in the retail market and their ability to adjust to the ever-changing consumer trends, as well as their focus on customer satisfaction, as factors that make them attractive investments. In comparison to other stocks in the market, Home Depot and Lowe’s have proven to be reliable options with strong potential for growth, making them popular choices for those looking to invest in the long-term. 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 |
| 157.4k | 17.11k | 10.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Home Depot. More…
| Operations | Investing | Financing |
| 14.62k | -3.14k | -10.99k |
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 |
| 76.44k | 74.88k | 1.27 |
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 |
| 12.6% | 14.9% | 15.3% |
| FCF Margin | ROE | ROA |
| 7.3% | 1160.2% | 19.7% |
Analysis – Home Depot Stock Intrinsic Value
At GoodWhale, we recently conducted an analysis of HOME DEPOT‘s fundamentals. Our proprietary Valuation Line evaluated the fair value of HOME DEPOT share to be around $342.8. This presents an opportunity for investors to buy into the company at a lower price and potentially receive higher returns on their investments. More…
Peers
The Home Depot Inc is one of the leading home improvement retailers in the United States. The company operates more than 2,200 stores across the country. Lowe’s Companies Inc is another leading home improvement retailer in the United States. The company operates more than 1,700 stores across the country. Floor & Decor Holdings Inc is a leading specialty retailer of hard surface flooring in the United States. The company operates more than 100 stores across the country. Wayfair Inc is a leading online retailer of home furnishings and home décor products.
– Lowe’s Companies Inc ($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
Investing in Home Depot can be a great long-term investment opportunity. The company also has a strong balance sheet and consistent dividend payments. Home Depot has experienced strong growth in sales over the past several years, driven largely by its e-commerce platform. With a competitive moat in the form of its expansive store network, the company is set to continue to grow sales and increase profitability in the future.
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