Some of the main competitors are Menards and Lowes, which provide the similar services and offer many of the same products. In the ever consolidating retail environment, it would seem the potential is there for one of these three to either fold or be bough out, so keep your eyes peeled, that way you can be alerted if anything were to arise.
Taking a look at the stock chart using the monthly time frame, we can see that the stock has done nothing but rise since 2009, and this is indicative of many equities in the market. It is important to fully understand how the stock could potentially be overbought or overvalued, as the market hasn’t stopped its bullish trend for over 7 years. The worst would be entering a stock at the highs only to have you value fall. Obviously predicting the highs of stock are nearly impossible, but you can gain a good understanding of where the market wants to be and where it wants to go.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Home Depot income statement, its balance sheet, and the statement of cash flows. Potential Home Depot investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Home Depot investors may use each financial statement separately, they are all related. The changes in Home Depot's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Home Depot's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Home Depot
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Home Depot performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Home Depot shares is the value that is considered the true value of the share. If
the intrinsic value of Home is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Home Depot. Please read more on our
fundamental analysis page.
How effective is Home Depot in utilizing its assets?
Home Depot reports assets on its Balance Sheet. It represents the amount of Home resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Home Depot aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Home Improvement Retail space. To get a better handle on how balance sheet or income statements item affect Home volatility, please check the breakdown of all its
fundamentals.
Are Home Depot Earnings Expected to grow?
The
future earnings power of Home Depot involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Home Depot factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Home Depot
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Home
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Home Depot earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Home Depot dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Home one year expected dividend income is about USD5.44 per share.
At present, Home Depot's
Dividend Paid And Capex Coverage Ratio is projected to slightly decrease based on the last few years of reporting.
Investing in dividend-paying stocks, such as Home Depot is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Home Depot must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Home Depot. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Home Depot Gross Profit
Home Depot Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Home Depot previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Home Depot Gross Profit growth over the last 10 years. Please check Home Depot's
gross profit and other
fundamental indicators for more details.
Is Home Depot valued correctly by the market?
As previously stated, the retail market consolidating and this could become an issue as the home improvement sector has many competitors. With that, here are a couple other risks to keep in the back of you mind. First, the price competition has to be fierce as it doesn’t take much for someone to drive or order online. Especially with Amazon, price competition is something to watch for. Secondly, keep an eye on sales and see if the changing landscape are affecting overall sales, and if they are, look at the company’s online presence to see if they are changing. If the company is stagnant, that could be a negative strike against them.
This area of the market seems to be going well and unaffected by the falling retail sector, however, this does not man these companies are immune. Watch out and be cautions that this company maintains their upward trajectory. With that in mind, only you can determine if this company is a good fit and if you have any questions, reach out to an investing professional and they can help to point you in the right direction.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Home Depot. Please refer to our
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