Qualtix Stock Brief
The Home Depot, Inc. (HD) stock analysis: business quality, valuation, and entry timing
Home Depot is the largest home-improvement retailer, serving both do-it-yourself customers and professional contractors. Demand follows housing activity and interest rates, while high returns on capital support its business quality. Public Qualtix model snapshot from 2026-10-26 for HD: business quality 40/100, below the model's stronger-company threshold and valuation Fair. Today's verdict and Entry Timing are shown after a free sign-in.
Qualtix evaluates HD with a rules-based model that separates business quality, valuation, entry timing, red flags, and data confidence. The model scores first; AI explanations and the full Clean Brief help explain the result afterward.
Coverage note: Qualtix can analyze supported US stocks when SEC/FMP filing data is available. The 1,000+ stock universe refers to the daily screener used for discovery, not the full analysis limit.
HD public evidence metrics from the latest validated Qualtix snapshot
| Metric | Value | Why it matters | Source |
|---|---|---|---|
| Revenue growth | 3.0% | 3-year revenue CAGR | FMP, computed |
| FCF margin | 8.9% | Free cash flow divided by revenue | FMP, computed |
| Operating margin | 12.4% | Profitability margin | FMP, computed |
| Gross margin | 33.2% | Revenue retained after direct costs | FMP, computed |
| Return on capital (pre-tax) | 26.5% | Operating profit before tax, divided by equity plus debt | FMP, computed |
| ROE | 85.6% | Return on equity | FMP, computed |
| Cash and debt | Cash $2.1B / Debt $62.6B | Balance-sheet context | FMP, reported |
| TTM P/E | 22.4x | Price to trailing earnings | FMP, computed |
Qualtix view
- Business quality: 40/100, below the model's stronger-company threshold.
- Valuation is currently labeled Fair, which the model weighs separately from business quality.
Today's verdict
- Today's model verdict and Entry Timing for HD update every market day and are shown after a free sign-in.
Data and snapshot dates
- Model snapshot date: 2026-10-26.
- Financial data through: 2026-08-02.
- Scored by the current Qualtix model.
- Data-confidence status: high.
What supports the current view
- Beta of 1.00 suggests lower market sensitivity than higher-beta alternatives.
What weakens the current view
- Business quality remains below the model's stronger-company threshold (40/100).
- Valuation is currently labeled Fair, so price still matters.
What changed
- Business Quality was unchanged from the previous snapshot.
What to research next
- Start with the weaker Business Quality signal (40/100): review revenue durability, margins, cash generation, and balance-sheet pressure.
- Compare HD's Fair valuation label with similar companies before treating price as a clear advantage.
- Compare HD with LOW and COST to see whether the model edge is company-specific or sector-wide.
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Qualtix is for research and education only. It is not financial advice.