How Does Home Depot’s Valuation Multiple Compare to Its Peers’?
Due to the high visibility of Home Depot’s (HD) earnings, we’ve considered its forward PE (price-to-earnings multiple) for our analysis of its valuation.
On May 17, 2017, Home Depot (HD) was trading at $156.09. This price may have already factored in the various estimates we’ve discussed in this series.
Home Depot posted a gross margin, EBITDA (earnings before interest, tax, depreciation, and amortization) margin, and net margin of 34.1%, 16.1%, and 8.4%, respectively, in 1Q17.
In 1Q17, Home Depot (HD) posted adjusted EPS (earnings per share) of $1.67, representing a rise of 16% compared to $1.44 in 1Q16.
Analysts expect Home Depot (HD) to post revenue of $100.3 billion in the next four quarters, representing a rise of 4.8% from $95.7 billion in the corresponding quarters of the previous year.
Home Depot (HD) posted revenue of $23.9 billion in 1Q17, reflecting a rise of 4.8% compared to $22.8 billion in 1Q16. The company outperformed analysts’ consensus revenue estimate by 0.62%.
In 1Q17, Home Depot posted SSSG of 5.5%, with the rise in its traffic contributing 1.5% and the growth in its average ticket size contributing 3.9%.
The world’s largest home improvement retailer, Home Depot (HD), posted its 1Q17 earnings on May 16, 2017. The company posted adjusted earnings per share of $1.67.
Of the 31 analysts that follow Lowe’s, 58.1% recommend a “buy,” 38.7% recommend a “hold,” and 3.2% recommend a “sell.”
For the next four quarters, analysts expect Lowe’s to post EPS of $4.65—growth of 16.8% from $3.98 in 2016.
Analysts expect Lowe’s to pay dividends of $0.33—a fall of 5.7% from $0.35 in 4Q16. It paid 4Q16 dividends at a yield of 1.6% and a payout ratio of 30.2%.
In 1Q17, analysts expect Lowe’s to post EPS (earnings per share) of $1.06, which represents growth of 21.8% from $0.87 in 1Q16.
In 1Q17, analysts expect Lowe’s (LOW) to post a gross margin, EBITDA margin, and net margin of 35.0%, 11.8%, and 5.4%, respectively.
Analysts expect Lowe’s (LOW) to post revenue of $16.9 billion in 1Q17, which represents growth of 11.1% from $15.23 billion in 1Q16.
Lowe’s (LOW) will announce its 1Q17 earnings before the market opens on May 24, 2017. Since its 4Q16 earnings on March 1, 2017, the stock has risen 15.1%.
As of May 10, 2017, analysts are expecting the company’s stock price to reach $159.21 in the next 12 months, which represents a return potential of 0.7%.
For 1Q17, analysts are expecting Home Depot (HD) to post EPS (earnings per share) of $1.61, which would represent a growth of 11.8% from $1.44 in 1Q16.
As of May 10, 2017, Home Depot was trading at 21.2x, as compared to 19.9x before the announcement of its 4Q16 earnings.
For 1Q17, analysts are expecting Home Depot (HD) to a post gross margin, EBITDA margin, and net margin of 34.1%, 15.9%, and 8.2%, respectively.
Since the announcement of its 4Q16 earnings on February 21, 2017, Home Depot (HD) stock has risen 10.6%.