The Home DepotXSWX:HD -0.82%83 ROA % is 12.34% as of Apr. 2026, which is 40% below its 10-year median of 20.46. 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 1,134 Retail - Cyclical companies, The Home Depot ranks better than 90.39% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. The Home Depot's annualizedNet Income for the quarter that ended in Apr. 2026 was CHF10,362 Mil.
The Home Depot's average Total Assets over the quarter that ended in Apr. 2026 was CHF83,974 Mil. Therefore, The Home Depot's annualized ROA % for the quarter that ended in Apr. 2026 was 12.34%.
The historical rank and industry rank for The Home Depot's ROA % or its related term are showing as below:
XSWX:HD'
s ROA % Range Over the Past 10 Years
Min: 13.51 Med: 20.46 Max: 25.12
Current: 13.51
During the past 13 years, The Home Depot's highest ROA % was 25.12%. The lowest was 13.51%. And the median was 20.46%.
XSWX:HD's ROA % is ranked better than 90.39% of 1134
companies
in the Retail - Cyclical industry
Industry Median: 2.715
vs XSWX:HD: 13.51
The Home Depot (XSWX:HD) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
The Home Depot ROA % Related Terms
The Home Depot ROA % Historical Data
* Premium members only.
The historical data trend for The Home Depot's ROA % 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's ROA % distribution charts can be found below:
* The bar in red indicates where The Home Depot's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
The Home Depot (XSWX:HD) has a ROA % of 12.34% as of Apr. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on The Home Depot and its competitors. This is 40% below median its historical median of 20.46. Over the past decade, The Home Depot's ROA % has ranged from 13.51 to 25.12. According to the industry distribution chart, The Home Depot ranks #109 out of 1134 companies in the Retail - Cyclical industry, placing it in the top 9.6%.
Is The Home Depot's ROA % too high?
The Home Depot's current ROA % of 12.34% is 40% below median its 10-year median of 20.46. Over the past 10 years, this metric has ranged from a low of 13.51 to a high of 25.12. The Retail - Cyclical industry median ROA % is 2.72. The Home Depot's value of 12.34% is 354.5% above this industry median. Based on the distribution chart, The Home Depot ranks #109 out of 1134 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 ROA % compare to LOW and FND?
According to the Retail - Cyclical industry distribution chart, The Home Depot ranks #109 out of 1134 companies for ROA %. This places The Home Depot in the top 10% of its industry — outperforming the majority of peers. The industry median ROA % is 2.72. The Home Depot's value of 12.34% is 354.5% above this benchmark. Historically, The Home Depot's own ROA % has ranged from 13.51 to 25.12 over the past decade. While the company's 10-year median is 20.46 vs. the industry median of 2.72, 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 ROA % for a Retail - Cyclical company?
The median ROA % among Retail - Cyclical companies is 2.72, based on 1,134 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Home Depot's current ROA % of 12.34% is 354.5% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on The Home Depot and its competitors. For the Retail - Cyclical industry, the median ROA % is 2.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Home Depot's current ROA % is 12.34%, which is 40% below median its own 10-year median of 20.46. 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 ROA % of 12.34%. 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 ROA % is 12.34%, which is 40% below median its 10-year median of 20.46 and 354.5% above the Retail - Cyclical industry median of 2.72. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For The Home Depot (XSWX:HD), the current ROA % is 12.34% 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:
ROA %: 12.34% (40% below median its 10-year median of 20.46)
GF Value™: CHF312.72 vs. price of CHF266.14 (14.9% below fair value)
Industry Position: 354.5% above the Retail - Cyclical median (#109 of 1134)
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
Get the complete analysis for XSWX:HD
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XSWX:HD has been successfully added to your 
