The Home DepotXSWX:HD -0.82%83 Gross Margin % is 33.00% as of Apr. 2026, which is 2% below its 10-year median of 33.79. GuruFocus rates XSWX:HD with a GF Score™ of 83/100 and a GF Value™ of CHF312.72. The stock has 3 warning signs investors should review. Among 1,117 Retail - Cyclical companies, The Home Depot ranks worse than 55.95% on this metric.
The historical rank and industry rank for The Home Depot's Gross Margin % or its related term are showing as below:
XSWX:HD'
s Gross Margin % Range Over the Past 10 Years
Min: 33.13 Med: 33.79 Max: 34.34
Current: 33.13
During the past 13 years, the highestGross Margin % of The Home Depot was 34.34%. The lowest was 33.13%. And the median was 33.79%.
XSWX:HD's Gross Margin % is ranked worse than 55.95% of 1117
companies
in the Retail - Cyclical industry
Industry Median: 36.25
vs XSWX:HD: 33.13
The Home Depot had a gross margin of 33.00% for the quarter that ended in Apr. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for The Home Depot was -0.30% per year.
The Home Depot (XSWX:HD) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
The Home Depot had a gross margin of 33.00% for the quarter that ended in Apr. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
The Home Depot Gross Margin % Related Terms
The Home Depot Gross Margin % Historical Data
* Premium members only.
The historical data trend for The Home Depot's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XSWX:HD vs LOW, FND, HVT: Gross Margin % Comparison
For the Home Improvement Retail subindustry, The Home Depot's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Home Depot Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's Gross Margin % distribution charts can be found below:
* The bar in red indicates where The Home Depot's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
The Home Depot (XSWX:HD) has a Gross Margin % of 33.00% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on The Home Depot and its competitors. This is near median its historical median of 33.79. Over the past decade, The Home Depot's Gross Margin % has ranged from 33.13 to 34.34. According to the industry distribution chart, The Home Depot ranks #625 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 56%.
Is The Home Depot's Gross Margin % too high?
The Home Depot's current Gross Margin % of 33.00% is near median its 10-year median of 33.79. Over the past 10 years, this metric has ranged from a low of 33.13 to a high of 34.34. The Retail - Cyclical industry median Gross Margin % is 36.25. The Home Depot's value of 33.00% is 9% below this industry median. Based on the distribution chart, The Home Depot ranks #625 out of 1117 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, The Home Depot has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does The Home Depot's Gross Margin % compare to LOW and FND?
According to the Retail - Cyclical industry distribution chart, The Home Depot ranks #625 out of 1117 companies for Gross Margin %. This places The Home Depot in the lower half of its industry. The industry median Gross Margin % is 36.25. The Home Depot's value of 33.00% is 9% below this benchmark. Historically, The Home Depot's own Gross Margin % has ranged from 33.13 to 34.34 over the past decade. While the company's 10-year median is 33.79 vs. the industry median of 36.25, The Home Depot has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.25, based on 1,117 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Home Depot's current Gross Margin % of 33.00% is 9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on The Home Depot and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Home Depot's current Gross Margin % is 33.00%, which is near median its own 10-year median of 33.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Home Depot stock overvalued right now?
The Home Depot (XSWX:HD) has a current Gross Margin % of 33.00%. The stock's GF Value™ is CHF312.72, compared to a current price of CHF266.14 — trading 14.9% below its estimated fair value. The current Gross Margin % is 33.00%, which is near median its 10-year median of 33.79 and 9% below the Retail - Cyclical industry median of 36.25. The Home Depot's overall GF Score™ is 83/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For The Home Depot (XSWX:HD), the current Gross Margin % is 33.00% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Home Depot (XSWX:HD) Overvalued in 2026?
Based on GuruFocus' analysis, The Home Depot stock appears to be undervalued.
The current stock price of CHF266.14 is trading 14.9% below its estimated GF Value™ of CHF312.72.
Key valuation signals for XSWX:HD:
Gross Margin %: 33.00% (near median its 10-year median of 33.79)
GF Value™: CHF312.72 vs. price of CHF266.14 (14.9% below fair value)
Industry Position: 9% below the Retail - Cyclical median (#625 of 1117)
No single metric tells the full story. See the XSWX:HD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Home Depot is the world's largest home improvement specialty retailer, operating 2,361 warehouse-format stores offering more than 30,000 products in store and 1 million products online in the US, Canada, and Mexico. Its stores offer 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 Interline Brands in 2015 allowed Home Depot to enter the MRO business, which has been expanded through the tie-up with HD Supply (2020). The 2024 tie-up with SRS will help grow professional demand in roofing, pool, and landscaping projects, while the 2025 purchase of GMS will lift building product sales through 1,250 distribution locations.
83GF Score
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