Technical Analysis Home Depot Stock
Fundamental Analysis Home Depot Stock
About Home DepotThe history of the company began in 1978. Its founders - Bernard Marcus, Arthur Blank, Ron Brill and Pat Farrah - initially had the idea to create America's largest supermarket for renovation and construction. The investor was the banker Ken Langone.
Home Depot operates throughout the United States (each state has a company store), Canada, China and Mexico. It is headquartered in Wienings, Georgia. The trading network includes more than 2 thousand stores. Home Depot employs over 413 thousand people. The issuer's board of directors is represented by 9 persons, and 8 of them are independent directors.
The company provides a wide range of building materials, home and garden products, and provides a range of services, such as home improvement, flooring installation, and rental of tools and equipment. Home Depot's clients are people who make repairs with their own hands, and professional customers - companies that implement their own projects.
In the average store of the company there are about 40 thousand items of products for repair, while the buyer has the opportunity to order an additional 250 thousand items that are not available at the outlet.
A Brief History of Home Depot Stocks from Simple-Invest1980 - The first two department stores are opened.
1984 - The company went public and entered the New York Stock Exchange (NYSE). The stocks were traded under the HD ticker and were included in the Dow Jones, S&P 500.
1989 - the hundredth retail store of the chain was opened.
1994 - Acquisition of Aikenhead's Hardware, a network of Canadian hardware stores.
2002 - the Del Norte retail chain was bought, thanks to which the corporation entered the Mexican market.
2006 - Operations began in China following the acquisition of The Home Way stores.
2007 - the company has already received a record revenue of $ 13 billion. But this and next year, due to the crisis in the United States, 54 stores had to be closed.
2019 - the corporation entered the Fortune Global 500 (rating of the largest companies in the world according to Fortune magazine), taking 62nd line.
Major investors include The Home Depot Capital World Investors, The Vanguard Group, Inc., State Street Corporation, FMR, LLC and BlackRock Institutional Trust Company, N.A.
What is Important for an Investor to Know?Market Cap The Home Depot, Inc. is $ 330,429,300,736 (June 2021). The company's revenue is growing from year to year. In May, the corporation posted good first quarter results. Sales rose 32.7% to $ 37.5 billion.
Net income after taxes was $ 4.145 billion. Profit was $ 3.86 per diluted share, up 85.6% year-on-year. For every dollar invested by creditors and shareholders, the company earns 22 cents.
As of the end of May 2021, customer traffic grew by 19%. This increased the group's sales by 30%, restoring it to its leading position in the industry over rival Lowe's. This also made it possible to cope with existing problems. Home Depot's largest profits came from large sponsors, which Home Depot classifies as paying more than $ 1,000 per transaction. This category jumped 50% in the first fiscal quarter of 2021. Demand here was high across the board.
Home Depot increased its financial performance, raising its ROI to 45% from 41% a year ago. This victory was supported by impressive operating indicators, including strong sales volumes. Executives have amplified these profits by keeping costs in check, actively buying back shares and taking advantage of low interest rates on debt.
The issuer declined to publish its forecast for 2021, citing serious questions regarding volatile demand trends, pricing and the economy. But it is clear that the latest growth results have been better than executives anticipated when they hinted at roughly flat earnings for the full year back in late February.
In March 2020, after the WHO pandemic was announced, Home Depot stock traded at $ 140.85. Since then, they have increased in value by more than 120%. On May 10, 2021, a historic maximum was reached - the share price was $ 341.12. As of June 14, 2021, it cost $ 310.49. According to experts, in the medium term, Home Depot quotes are likely to return to $ 340.
HD has a very strong debt load - liabilities make up 97.5% of all assets. The company pays 5.8% of operating income to interest on loans. In 2020, of $ 15.843 billion in revenue, $ 1.128 billion was spent on such payments. This is no more than 10% of the total, so from this perspective, large corporate debt is not a problem.
Investors mainly profit from the growth in the value of the issuer's securities, but there are also dividend payments. The capitalization of the shares is $ 330,428.82 million. The company spends 50% of its net profit on dividends. Payments are regular. The quarterly dividend for 2021 is $ 1.65. While Home Depot's share price is rising, several factors can reduce its value. The highest price activity for shares is observed at the time of publication of quarterly and annual financial statements of the corporation, as well as when the board of directors announces the amount of dividend payments.