Home Depot Piotroski F Score

HD -  USA Stock  

USD 293.57  5.65  1.96%

This module uses fundamental data of Home Depot to approximate its Piotroski F score. Home Depot F Score is determined by combining nine binary scores representing 3 distinct fundamental categories of Home Depot. These three categories are profitability, efficiency, and funding. Some research analysts and sophisticated value traders use Piotroski F Score to find opportunities outside of the conventional market and financial statement analysis.They believe that some of the new information about Home Depot financial position does not get reflected in the current market share price suggesting a possibility of arbitrage. Please check Home Depot Altman Z Score, Home Depot Correlation, Home Depot Valuation, as well as analyze Home Depot Alpha and Beta and Home Depot Hype Analysis.
  
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Home Depot Debt Non Current is projected to increase significantly based on the last few years of reporting. The past year's Debt Non Current was at 41.96 Billion. The current year Issuance Repayment of Debt Securities is expected to grow to about 3.5 B, whereas Debt Current is forecasted to decline to about 3.5 B. Home Depot Calculated Tax Rate is projected to drop based on the last few years of reporting. The past year's Calculated Tax Rate was at 27.85. The current year Receivables Turnover is expected to grow to 63.85, whereas PPandE Turnover is forecasted to decline to 4.27.
At this time, it appears that Home Depot's Piotroski F Score is Strong. Although some professional money managers and academia have recently criticized Piotroski F-Score model, we still consider it an effective method of predicting the state of the financial strength of any organization that is not predisposed to accounting gimmicks and manipulations. Using this score on the criteria to originate an efficient long-term portfolio can help investors filter out the purely speculative stocks or equities playing fundamental games by manipulating their earnings..
7.0
Piotroski F Score - Strong
1
Current Return On AssetsPositiveFocus
2
Change in Return on AssetsIncreasedFocus
3
Cash Flow Return on AssetsPositiveFocus
4
Current Quality of Earnings (accrual)ImprovingFocus
5
Asset Turnover GrowthIncreaseFocus
6
Current Ratio ChangeIncreaseFocus
7
Long Term Debt Over Assets ChangeHigher LeverageFocus
8
Change In Outstending SharesIncreaseFocus
9
Change in Gross MarginIncreaseFocus

Home Depot Piotroski F Score Drivers

The critical factor to consider when applying the Piotroski F Score to Home Depot is to make sure Home Depot is not a subject of accounting manipulations and runs a healthy internal audit department. So, if Home Depot's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back. Below are the main accounts that are used in the Piotroski F Score model. By analyzing the historical trends of the mains drivers, investors can determine if Home Depot's financial numbers are properly reported.
Current ValueLast YearChange From Last Year 10 Year Trend
Weighted Average Shares1.1 B1.1 B
Notably Up
Decreasing
Slightly volatile
Weighted Average Shares Diluted1.1 B1.1 B
Notably Up
Decreasing
Slightly volatile
Net Cash Flow from Operations18.6 B16.6 B
Moderately Up
Increasing
Slightly volatile
Total Assets75 B71.9 B
Sufficiently Up
Increasing
Slightly volatile
Total Liabilities74.1 B73.6 B
Slightly Up
Increasing
Slightly volatile
Current Assets30.3 B29.1 B
Sufficiently Up
Increasing
Slightly volatile
Current Liabilities27.3 B28.7 B
Notably Down
Increasing
Slightly volatile
Total Debt47.2 B46.3 B
Fairly Up
Increasing
Slightly volatile
Return on Average Assets0.230.228
Slightly Up
Increasing
Slightly volatile
Gross Margin0.360.336
Notably Up
Increasing
Stable
Asset Turnover2.182.098
Sufficiently Up
Increasing
Slightly volatile

Home Depot F Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to project the various growth rates. Understanding the correlation between Home Depot's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Home Depot in a much-optimized way.

About Home Depot Piotroski F Score

F-Score is one of many stock grading techniques developed by Joseph Piotroski, a professor of accounting at the Stanford University Graduate School of Business. It was published in 2002 under the paper titled Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers. Piotroski F Score is based on binary analysis strategy in which stocks are given one point for passing 9 very simple fundamental tests, and zero point otherwise. According to Mr. Piotroski's analysis, his F-Score binary model can help to predict the performance of low price-to-book stocks.

Operating Margin

11.69

Share
Home Depot Operating Margin is projected to increase slightly based on the last few years of reporting. The past year's Operating Margin was at 12.45

About Home Depot Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Home Depot's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Home Depot using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Home Depot based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
The Home Depot, Inc. operates as a home improvement retailer. The Home Depot, Inc. was incorporated in 1978 and is based in Atlanta, Georgia. Home Depot operates under Home Improvement Retail classification in the United States and is traded on New York Stock Exchange. It employs 490600 people.

Home Depot Investors Sentiment

The influence of Home Depot's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Home Depot. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Home Depot Implied Volatility

    
  46.71  
Home Depot's implied volatility exposes the market's sentiment of Home Depot stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Home Depot's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Home Depot stock will not fluctuate a lot when Home Depot's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Home Depot in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Home Depot's short interest history, or implied volatility extrapolated from Home Depot options trading.

Current Sentiment - HD

Home Depot Investor Sentiment

Nearly all of Macroaxis users are currently bullish on Home Depot. What is your judgment towards investing in Home Depot? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish
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Please check Home Depot Altman Z Score, Home Depot Correlation, Home Depot Valuation, as well as analyze Home Depot Alpha and Beta and Home Depot Hype Analysis. Note that the Home Depot information on this page should be used as a complementary analysis to other Home Depot's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

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Is Home Depot's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Home Depot. If investors know Home Depot will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Home Depot listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Home Depot is measured differently than its book value, which is the value of Home Depot that is recorded on the company's balance sheet. Investors also form their own opinion of Home Depot's value that differs from its market value or its book value, called intrinsic value, which is Home Depot's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Home Depot's market value can be influenced by many factors that don't directly affect Home Depot's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Home Depot's value and its price as these two are different measures arrived at by different means. Investors typically determine Home Depot value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Home Depot's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.