Home Depot Long52W RANGE - $144.25 - $207.60
MARKET CAP - $212.8B
AVERAGE VOLUME – 6,060,986
BETA – 1.14
DIV YIELD – 1.91%
PRICE/BOOK – 83.66
P/E – 25.26
EPS – 7.21
EARNINGS YIELD – 5.07%
In December 2017, Home Depot set out new long-term financial targets, which are highly likely to be achieved in fiscal year 2020. HD reaffirmed its financial targets for fiscal 2020 while it updated the return on invested capital target to reflect the impact of the Tax Reform in 2017. HD expects total sales in range of $115-120bn, with annual compound growth of 4.5-6%. On top of this the company now expects a return on invested capital to be more than 40% (previously 36.4-39.6%) – this reflects the positive impact of the new tax reform. The company plans to accelerate investments in the next three years to enhance shareholder value and mainly it’s customer’s experience.
HD has been gaining from its focus on professional customers (pro customers). Recently, the company has also acquired Compact Power Equipment which moved another step forward for their pro customers portfolio service offerings.
Risk wise – the only concerns would be the inflated P/E ratio against the sector and S&P 500. Macroeconomic problems could be another risk – harsh credit access. Home Depot’s main threat is LOW with its competitive pricing, expansion in aspect of location and the quality of merchandise.
NeroTree Capital rates Home Depot Inc as a BUY with a price target of $190.
