The Home Depot (XSWX:HD) ROCE %: 27.49% (As of Apr. 2026)


XSWX:HD The Home Depot Inc XSWX:HD
83 GF Score
Price CHF266.14
GF Value CHF312.72
! 3 Warning Signs
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What is The Home Depot ROCE %?

The Home Depot XSWX:HD -0.82% 83 ROCE % is 27.49% as of Apr. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. The Home Depot's annualized ROCE % for the quarter that ended in Apr. 2026 was 27.49%.

The Home Depot  (XSWX:HD) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

The Home Depot ROCE % Related Terms

The Home Depot ROCE % Historical Data

* Premium members only.

The historical data trend for The Home Depot's ROCE % 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.

The Home Depot ROCE % Chart

The Home Depot Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25 Jan26
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 51.92 50.05 39.09 36.53 27.94

The Home Depot Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 29.22 37.68 30.50 21.43 27.49
XSWX:HD
83GF Score
The Home Depot Inc XSWX:HD
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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The Home Depot ROCE % Calculation

The Home Depot's annualized ROCE % for the fiscal year that ended in Jan. 2026 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Jan. 2026 )  (A: Jan. 2025 )(A: Jan. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Jan. 2026 )  (A: Jan. 2025 )(A: Jan. 2026 )
=16588.452/( ( (87429.842 - 26070.046) + (82961.993 - 25595.506) )/ 2 )
=16588.452/( (61359.796+57366.487)/ 2 )
=16588.452/59363.1415
=27.94 %

The Home Depot's ROCE % of for the quarter that ended in Apr. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Apr. 2026 )  (Q: Jan. 2026 )(Q: Apr. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Apr. 2026 )  (Q: Jan. 2026 )(Q: Apr. 2026 )
=15714.196/( ( (82961.993 - 25595.506) + (84985.19 - 28022.808) )/ 2 )
=15714.196/( ( 57366.487 + 56962.382 )/ 2 )
=15714.196/57164.4345
=27.49 %

(1) Note: The EBIT data used here is four times the quarterly (Apr. 2026) EBIT 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 27.49% mean?
The Home Depot (XSWX:HD) has a ROCE % of 27.49% as of Apr. 2026.
Is The Home Depot's ROCE % too high?
The Home Depot's current ROCE % is 27.49%. The Retail - Cyclical industry median ROCE % is 7.58. The Home Depot's value of 27.49% is 262.7% above this industry median. 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 ROCE % compare to LOW and FND?
The Home Depot's ROCE % of 27.49% can be compared against companies in the Retail - Cyclical industry. The industry median ROCE % is 7.58. The Home Depot's value of 27.49% is 262.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Retail - Cyclical company?
The median ROCE % among Retail - Cyclical companies is 7.58, based on 1,117 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Home Depot's current ROCE % of 27.49% is 262.7% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Retail - Cyclical industry, the median ROCE % is 7.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Home Depot's current ROCE % is 27.49%. 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 ROCE % of 27.49%. 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 ROCE % is 27.49% and 262.7% above the Retail - Cyclical industry median of 7.58. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For The Home Depot (XSWX:HD), the current ROCE % is 27.49% 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:

  • ROCE %: 27.49%
  • GF Value™: CHF312.72 vs. price of CHF266.14 (14.9% below fair value)
  • GF Score™: 83/100 with 3 warning signs
  • Industry Position: 262.7% above the Retail - Cyclical median

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.

The Home Depot Business Description

Address 2455 Paces Ferry Road, Atlanta, GA, USA, 30339
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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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF266.14
Price
CHF312.72
GF Value