The Home DepotXSWX:HD +3.50%83 Net Margin % is 7.88% as of Apr. 2026, which is 20% below its 10-year median of 9.83. 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 1,128 Retail - Cyclical companies, The Home Depot ranks better than 80.94% on this metric.
Net margin is calculated as Net Income divided by its Revenue. The Home Depot's Net Income for the
three
months ended in Apr. 2026 was CHF2,590 Mil. The Home Depot's Revenue for the
three
months ended in Apr. 2026 was CHF32,894 Mil. Therefore, The Home Depot's net margin for the quarter that ended in Apr. 2026 was 7.88%.
The historical rank and industry rank for The Home Depot's Net Margin % or its related term are showing as below:
XSWX:HD'
s Net Margin % Range Over the Past 10 Years
Min: 8.41 Med: 9.83 Max: 10.87
Current: 8.41
XSWX:HD's Net Margin % is ranked better than 80.94% of 1128
companies
in the Retail - Cyclical industry
Industry Median: 2.335
vs XSWX:HD: 8.41
The Home Depot (XSWX:HD) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
The Home Depot Net Margin % Related Terms
The Home Depot Net Margin % Historical Data
* Premium members only.
The historical data trend for The Home Depot's Net 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.
For the Home Improvement Retail subindustry, The Home Depot's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's Net Margin % distribution charts can be found below:
* The bar in red indicates where The Home Depot's Net 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.
The Home Depot (XSWX:HD) has a Net Margin % of 7.88% as of Apr. 2026. Net margin is the ratio of total net income to net sales. View historical data on The Home Depot and its competitors. This is 20% below median its historical median of 9.83. Over the past decade, The Home Depot's Net Margin % has ranged from 8.41 to 10.87. According to the industry distribution chart, The Home Depot ranks #215 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 19.1%.
Is The Home Depot's Net Margin % too high?
The Home Depot's current Net Margin % of 7.88% is 20% below median its 10-year median of 9.83. Over the past 10 years, this metric has ranged from a low of 8.41 to a high of 10.87. The Retail - Cyclical industry median Net Margin % is 2.34. The Home Depot's value of 7.88% is 237.5% above this industry median. Based on the distribution chart, The Home Depot ranks #215 out of 1128 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. 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 Net Margin % compare to LOW and FND?
According to the Retail - Cyclical industry distribution chart, The Home Depot ranks #215 out of 1128 companies for Net Margin %. This places The Home Depot in the top 19% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.34. The Home Depot's value of 7.88% is 237.5% above this benchmark. Historically, The Home Depot's own Net Margin % has ranged from 8.41 to 10.87 over the past decade. While the company's 10-year median is 9.83 vs. the industry median of 2.34, The Home Depot has consistently been above 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 Net Margin % for a Retail - Cyclical company?
The median Net Margin % among Retail - Cyclical companies is 2.34, based on 1,128 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Home Depot's current Net Margin % of 7.88% is 237.5% above 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on The Home Depot and its competitors. For the Retail - Cyclical industry, the median Net Margin % is 2.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Home Depot's current Net Margin % is 7.88%, which is 20% below median its own 10-year median of 9.83. 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 Net Margin % of 7.88%. The stock's GF Value™ is CHF312.72, compared to a current price of CHF275.46 — trading 11.9% below its estimated fair value. The current Net Margin % is 7.88%, which is 20% below median its 10-year median of 9.83 and 237.5% above the Retail - Cyclical industry median of 2.34. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For The Home Depot (XSWX:HD), the current Net Margin % is 7.88% 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 CHF275.46 is trading 11.9% below its estimated GF Value™ of CHF312.72.
Key valuation signals for XSWX:HD:
Net Margin %: 7.88% (20% below median its 10-year median of 9.83)
GF Value™: CHF312.72 vs. price of CHF275.46 (11.9% below fair value)
Industry Position: 237.5% above the Retail - Cyclical median (#215 of 1128)
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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