Why The Home Depot Inc (HD) Stock Is A Buy? Acquirer’s Multiple Stock Screener Analysis

Johnny HopkinsStock ScreenerLeave a Comment

As part of our ongoing series here at The Acquirer’s Multiple, each week we focus on one of the stocks from our Stock Screeners, and why it’s a ‘buy’ based on key fundamentals.

One of the cheapest stocks in our Stock Screeners is:

The Home Depot Inc (HD)

Home Depot is the world’s largest home improvement specialty retailer, operating more than 2,300 warehouse-format stores offering more than 30,000 products in store and 1 million products online in the United States, Canada, and Mexico. Its stores offer numerous building materials, home improvement products, lawn and garden products, and decor products and provide various services, including home improvement installation services and tool and equipment rentals. The acquisition of distributor Interline Brands in 2015 allowed Home Depot to enter the maintenance, repair, and operations business, which has been expanded through the tie-up with HD Supply (2020). Moreover, the additions of the Company Store brought textile exposure to the lineup, while Redi Carpet added multifamily flooring.

A quick look at the share price history (below) over the past twelve months shows that the price is up 9.52%. Here’s why the company is undervalued.

HD Chart

HD data by YCharts

Key Stats

Market Cap: $326.21 Billion

Enterprise Value: $372.88 Billion

Operating Earnings

Operating Earnings: $23.04 Billion

Acquirer’s Multiple

Acquirer’s Multiple: 16.20

Free Cash Flow (TTM)

Free Cash Flow: $16.27 Billion

FCF/EV Yield %:

FCF/EV Yield: 4.99

Shareholder Yield %:

Shareholder Yield: 4.70

Other Indicators

Piotroski F Score (TTM): 6.00

Altman Z-Score (TTM): 7.308

ROA (5 Year Avge%): 30

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