Image Source: HomeDepot.comAs part of our ongoing series here at The Acquirer’s Multiple, each week we focus on one of the stocks from our Stock Screeners, and why it’s a ‘buy’ based on key fundamentals.One of the cheapest stocks in our Stock Screeners is:
Home Depot Inc. (HD)
Home Depot is the world’s largest home improvement specialty retailer, operating more than 2,300 warehouse-format stores offering more than 30,000 products in store and 1 million products online in the United States, Canada, and Mexico. Its stores offer numerous building materials, home improvement products, lawn and garden products, and decor products and provide various services, including home improvement installation services and tool and equipment rentals. The acquisition of distributor Interline Brands in 2015 allowed Home Depot to enter the maintenance, repair, and operations business, which has been expanded through the tie-up with HD Supply (2020). The additions of the Company Store brought textile exposure to the lineup, while Redi Carpet added multifamily flooring.A quick look at the share price history (below) over the past twelve months shows that the price is up 7.62%. Here’s why the company is undervalued.Stock ScreenersSource: Google FinanceKey StatsMarket Cap: $330.97 BillionEnterprise Value: $377.72 BillionOperating EarningsOperating Earnings: $21.22 BillionAcquirer’s MultipleAcquirer’s Multiple: 17.80Free Cash Flow (TTM)Free Cash Flow: $17.89 BillionFCF/MC Yield %:FCF/MC Yield: 5.40Shareholder Yield %:Shareholder Yield: 4.20Other IndicatorsPiotroski F Score: 5.00Dividend Yield: 2.60ROA (5 Year Avge%): 27More By This Author:Apple Inc. (APPL) DCF Valuation: Is The Stock Undervalued?Coca-Cola Co Valuation: Is The Stock Undervalued?Why Peabody Energy Corp Stock Is A Buy?
Leave A Comment