The Home DepotXSWX:HD -0.82%83 OCF Yield % is 5.57 as of Jun. 24, 2026, which is 1% above its 10-year median of 5.53. 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 1,126 Retail - Cyclical companies, The Home Depot ranks worse than 56.75% on this metric.
OCF Yield % is calculated as Cash Flow from Operations divided by Market Capitalization. It is a financial solvency ratio that compares the operating cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, OCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high operating cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
The Home Depot OCF Yield % Related Terms
The Home Depot OCF Yield % Historical Data
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The historical data trend for The Home Depot's OCF Yield % 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 OCF Yield %, along with its competitors' market caps and OCF Yield % 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 OCF Yield % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's OCF Yield % distribution charts can be found below:
* The bar in red indicates where The Home Depot's OCF Yield % 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 OCF Yield % of 5.57 as of Jun. 24, 2026. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on The Home Depot and its competitors. This is near median its historical median of 5.53. Over the past decade, The Home Depot's OCF Yield % has ranged from 3.39 to 8.27. According to the industry distribution chart, The Home Depot ranks #639 out of 1126 companies in the Retail - Cyclical industry, placing it in the top 56.7%.
Is The Home Depot's OCF Yield % too high?
The Home Depot's current OCF Yield % of 5.57 is near median its 10-year median of 5.53. Over the past 10 years, this metric has ranged from a low of 3.39 to a high of 8.27. The Retail - Cyclical industry median OCF Yield % is 7.61. The Home Depot's value of 5.57 is 26.8% below this industry median. Based on the distribution chart, The Home Depot ranks #639 out of 1126 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 OCF Yield % compare to LOW and FND?
According to the Retail - Cyclical industry distribution chart, The Home Depot ranks #639 out of 1126 companies for OCF Yield %. This places The Home Depot in the lower half of its industry. The industry median OCF Yield % is 7.61. The Home Depot's value of 5.57 is 26.8% below this benchmark. Historically, The Home Depot's own OCF Yield % has ranged from 3.39 to 8.27 over the past decade. While the company's 10-year median is 5.53 vs. the industry median of 7.61, 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 OCF Yield % for a Retail - Cyclical company?
The median OCF Yield % among Retail - Cyclical companies is 7.61, based on 1,126 companies in the industry. Companies in the top quartile (top 25%) have a OCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, OCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Home Depot's current OCF Yield % of 5.57 is 26.8% 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 OCF Yield % mean?
A high OCF Yield % can signal that a stock is expensive relative to its fundamentals. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on The Home Depot and its competitors. For the Retail - Cyclical industry, the median OCF Yield % is 7.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Home Depot's current OCF Yield % is 5.57, which is near median its own 10-year median of 5.53. 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 OCF Yield % of 5.57. 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 OCF Yield % is 5.57, which is near median its 10-year median of 5.53 and 26.8% below the Retail - Cyclical industry median of 7.61. 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 OCF Yield % calculated?
OCF Yield % is calculated from a company's financial statements. For The Home Depot (XSWX:HD), the current OCF Yield % is 5.57 as of Jun. 24, 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:
OCF Yield %: 5.57 (near median its 10-year median of 5.53)
GF Value™: CHF312.72 vs. price of CHF266.14 (14.9% below fair value)
Industry Position: 26.8% below the Retail - Cyclical median (#639 of 1126)
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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