Is Home Depot financially stable?
Asked by: Lucile Carroll | Last update: March 3, 2025Score: 4.9/5 (55 votes)
Is Home Depot doing well financially?
The home improvement retailer's overall revenue rose by 6.6% to $40.2 billion, bolstered by its recent acquisition of SRS Distribution.
Does Home Depot have too much debt?
We'd say that Home Depot's moderate net debt to EBITDA ratio ( being 2.0), indicates prudence when it comes to debt. And its commanding EBIT of 10.7 times its interest expense, implies the debt load is as light as a peacock feather.
Does Home Depot have a future?
Analysts expect Home Depot's total sales to rise 3% in fiscal 2025 as the macro environment improves. By comparison, Lowe's (LOW 1.26%) sales tumbled 11% in fiscal 2023 (which ended in February 2024), and analysts anticipate another 2% decline in fiscal 2024 before it finally generates 3% growth in fiscal 2025.
How is Home Depot doing in 2024?
ATLANTA , Nov. 12, 2024 /PRNewswire/ -- The Home Depot®, the world's largest home improvement retailer, today reported sales of $40.2 billion for the third quarter of fiscal 2024, an increase of 6.6% from the third quarter of fiscal 2023.
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Why are Home Depot sales down?
Home Depot has battled choppy demand over the past two years, as sticky inflation and higher borrowing costs prompted customers to pause large-scale home remodels and focus on repair and maintenance activities around their existing homes.
Are Home Depot employees getting a raise?
Home Depot raising hourly wages in bid to attract workers
The Atlanta-based home improvement chain said every hourly employee will get a raise starting this month, with some employees already seeing the difference in their latest paycheck. Starting pay will be at least $15 per hour in all markets.
What is the long term outlook for Home Depot?
Analysts are optimistic about Home Depot's stock performance, with projections of a 12% increase in 2024 and a further 25% in 2025. This bullish outlook is supported by several factors, including the company's strong financial performance, strategic acquisitions, and potential policy tailwinds.
Is Home Depot making money?
Home Depot Gross Profit
Home Depot's gross profit from October 2020 to October 2021 was about $49.8 billion. Home Depot's total gross profit for all of 2021 was about $44.85 billion. Home Depot's annual gross profits have increased every year since 2010.
Will Home Depot bounce back?
Home Depot navigated a challenging 2024 marked by elevated interest rates and a cautious consumer. But as the year progressed, signs of recovery emerged, setting the stage for a rebound in 2025, fueled by increased housing turnover and pent-up demand in the home improvement market.
Who is suing Home Depot?
The action was filed in San Diego Superior Court by the San Diego County District Attorney's Consumer Protection Unit along with LADA's Consumer Protection Division and District Attorneys of Alameda, Orange, San Bernardino, and Sonoma counties.
Who owns the largest percent of Home Depot?
Home Depot is mainly owned by institutional investors, who own around 70% of shares. The largest shareholders in December 2023 were: The Vanguard Group (9.49%) BlackRock (7.15%)
Is Home Depot stock risky?
Risk and Uncertainty
We give Home Depot a Low Uncertainty Rating, owing to its strong brand recognition, which has helped stabilize sales through the cycle. Sales are largely driven by greater consumer willingness to spend on category goods, with stable existing-home price growth and decent turnover.
Is Home Depot richer than Lowes?
LOW vs.
Home Depot holds the lead with a market share of approximately 47%, whereas Lowe's commands around 28%. In fiscal 2023, HD reported revenues of $152.7 billion compared with Lowe's $86.4 billion.
What is Home Depot's warning about the economy?
It said customers were spending less on home improvement projects, pressured by higher interest rates and concerns that the economy is getting worse. Home Depot's business is closely tied to the housing market, and high interest rates are putting a brake on housing turnover and consumers financing larger projects.
Why is Home Depot stock dropping?
Rising interest rates and economic unpredictability have led to consumer caution, resulting in a 1.3% decline in comparable sales for the third quarter.
Are Home Depot employees happy?
The Home Depot has an overall rating of 3.8 out of 5, based on over 54,364 reviews left anonymously by employees. 72% of employees would recommend working at The Home Depot to a friend and 63% have a positive outlook for the business. This rating has been stable over the past 12 months.
Why do people leave Home Depot?
Pay is not keeping up. failure to implement new policies and technologies to stay competitive. company just doesn't care about the individual once you are talking to someone outside the store. Easier workloads at different companies for equal or better pay.
Who buys the most from Home Depot?
Generationally, baby boomers are Home Depot's most important customers. The generation born after World War II accounts for about half of Home Depot's revenue, which is unsurprising considering about 40% of the nation's homeowners are boomers, and they own about half of the total home value in the country.
Is Home Depot giving their employees a raise?
The Home Depot is spending $1 billion to give associates wages of at least $15, the company announced Tuesday. The first changes were reflected in employees' Feb. 17 paycheck, while other employees will see the changes on their Feb. 24 paychecks.
Who pays better, Home Depot or Lowe's?
Home Depot also instituted a company-wide minimum wage of $15 per hour in February of 2023, while Lowe's does not offer a company-wide minimum wage, and jobs in the $13–$14 per hour range are not uncommon in some areas.
How much is The Home Depot employee bonus?
Home Depot's bonus payments will be determined based on a person's length of service, similar to Walmart's strategy. The payouts range from $200 at minimum to up to $1,000 for all hourly employees in the U.S.