The Home DepotXSWX:HD -0.82%83 Pretax Margin % is 10.48% as of Apr. 2026, which is 21% below its 10-year median of 13.28. 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 80.67% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. The Home Depot's Pre-Tax Income for the
three
months ended in Apr. 2026 was CHF3,447 Mil. The Home Depot's Revenue for the
three
months ended in Apr. 2026 was CHF32,894 Mil. Therefore, The Home Depot's pretax margin for the quarter that ended in Apr. 2026 was 10.48%.
The historical rank and industry rank for The Home Depot's Pretax Margin % or its related term are showing as below:
XSWX:HD'
s Pretax Margin % Range Over the Past 10 Years
Min: 11.07 Med: 13.28 Max: 14.38
Current: 11.07
XSWX:HD's Pretax Margin % is ranked better than 80.67% of 1128
companies
in the Retail - Cyclical industry
Industry Median: 3.15
vs XSWX:HD: 11.07
The Home Depot (XSWX:HD) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
The Home Depot Pretax Margin % Related Terms
The Home Depot Pretax Margin % Historical Data
* Premium members only.
The historical data trend for The Home Depot's Pretax 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: Pretax Margin % Comparison
For the Home Improvement Retail subindustry, The Home Depot's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where The Home Depot's Pretax 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 Pretax Margin % of 10.48% as of Apr. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on The Home Depot and its competitors. This is 21% below median its historical median of 13.28. Over the past decade, The Home Depot's Pretax Margin % has ranged from 11.07 to 14.38. According to the industry distribution chart, The Home Depot ranks #218 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 19.3%.
Is The Home Depot's Pretax Margin % too high?
The Home Depot's current Pretax Margin % of 10.48% is 21% below median its 10-year median of 13.28. Over the past 10 years, this metric has ranged from a low of 11.07 to a high of 14.38. The Retail - Cyclical industry median Pretax Margin % is 3.15. The Home Depot's value of 10.48% is 232.7% above this industry median. Based on the distribution chart, The Home Depot ranks #218 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 Pretax Margin % compare to LOW and FND?
According to the Retail - Cyclical industry distribution chart, The Home Depot ranks #218 out of 1128 companies for Pretax Margin %. This places The Home Depot in the top 19% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 3.15. The Home Depot's value of 10.48% is 232.7% above this benchmark. Historically, The Home Depot's own Pretax Margin % has ranged from 11.07 to 14.38 over the past decade. While the company's 10-year median is 13.28 vs. the industry median of 3.15, 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 Pretax Margin % for a Retail - Cyclical company?
The median Pretax Margin % among Retail - Cyclical companies is 3.15, based on 1,128 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Home Depot's current Pretax Margin % of 10.48% is 232.7% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on The Home Depot and its competitors. For the Retail - Cyclical industry, the median Pretax Margin % is 3.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Home Depot's current Pretax Margin % is 10.48%, which is 21% below median its own 10-year median of 13.28. 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 Pretax Margin % of 10.48%. 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 Pretax Margin % is 10.48%, which is 21% below median its 10-year median of 13.28 and 232.7% above the Retail - Cyclical industry median of 3.15. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For The Home Depot (XSWX:HD), the current Pretax Margin % is 10.48% 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:
Pretax Margin %: 10.48% (21% below median its 10-year median of 13.28)
GF Value™: CHF312.72 vs. price of CHF266.14 (14.9% below fair value)
Industry Position: 232.7% above the Retail - Cyclical median (#218 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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