The Home DepotXSWX:HD 83 Return-on-Tangible-Equity is Negative Tangible Equity% as of Apr. 2026. GuruFocus rates XSWX:HD with a GF Score™ of 83/100 and a GF Value™ of CHF304.27. The stock has 3 warning signs investors should review. Among 1,058 Retail - Cyclical companies, The Home Depot ranks better than 99.91% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. The Home Depot's annualized net income for the quarter that ended in Apr. 2026 was CHF10,362 Mil. The Home Depot's average shareholder tangible equity for the quarter that ended in Apr. 2026 was CHF-15,261 Mil. Therefore, The Home Depot's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for The Home Depot's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:HD'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 246.58 Med: 731.47 Max: 1216.35
Current: Negative Tangible Equity
During the past 13 years, The Home Depot's highest Return-on-Tangible-Equity was 1,216.35%. The lowest was 246.58%. And the median was 731.47%.
XSWX:HD's Return-on-Tangible-Equity is ranked better than 99.91% of 1058
companies
in the Retail - Cyclical industry
Industry Median: 8.4
vs XSWX:HD: Negative Tangible Equity
The Home Depot (XSWX:HD) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
The Home Depot Return-on-Tangible-Equity Related Terms
The Home Depot Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for The Home Depot's Return-on-Tangible-Equity 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: Return-on-Tangible-Equity Comparison
For the Home Improvement Retail subindustry, The Home Depot's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where The Home Depot's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
The Home Depot (XSWX:HD) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on The Home Depot and its competitors. Over the past decade, The Home Depot's Return-on-Tangible-Equity has ranged from 246.58 to 1,216.35. According to the industry distribution chart, The Home Depot ranks #1 out of 1058 companies in the Retail - Cyclical industry, placing it in the top 0.099999999999994%.
Is The Home Depot's Return-on-Tangible-Equity too high?
The Home Depot's current Return-on-Tangible-Equity is Negative Tangible Equity%. Over the past 10 years, this metric has ranged from a low of 246.58 to a high of 1,216.35. Based on the distribution chart, The Home Depot ranks #1 out of 1058 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 Return-on-Tangible-Equity compare to LOW and FND?
According to the Retail - Cyclical industry distribution chart, The Home Depot ranks #1 out of 1058 companies for Return-on-Tangible-Equity. This places The Home Depot in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.40. Historically, The Home Depot's own Return-on-Tangible-Equity has ranged from 246.58 to 1,216.35 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.40, based on 1,058 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on The Home Depot and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Home Depot's current Return-on-Tangible-Equity is Negative Tangible Equity%. 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 Return-on-Tangible-Equity of Negative Tangible Equity%. The stock's GF Value™ is CHF304.27, compared to a current price of CHF279.94 — trading 8% below its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For The Home Depot (XSWX:HD), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 CHF279.94 is trading 8% below its estimated GF Value™ of CHF304.27.
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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