HOME DEPOT

Analysis Home Depot share price

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Do you want to invest in the American Home Depot share price and need help with your analysis of this stock? We propose you to discover an article entirely dedicated to this stock in which you will find many useful information about this company. We will present the group, its main activities and sources of revenue, its direct competitors on the market and its recent partnerships. We will also explain how to perform a good fundamental analysis of this stock.

Elements that can influence the price of this asset:

Analysis N°1

First of all, the diversification of the group's product portfolio will have to be monitored, particularly with the addition of new brands under exclusive contracts which may enable it to win new customers.

Analysis N°2

Of course, it will also be necessary to follow the competition in this sector of activity with the news of the major players in this sector as well as the evolution of the distribution of the market shares.

Analysis N°3

It is also important to keep an eye on government policies with respect to taxes, which can have a significant impact on a company's profitability.

Analysis N°4

Finally, the group's economic publications and its annual and quarterly results must be studied carefully, comparing them with previous data and with analysts' expectations.

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General presentation of Home Depot

Now let's take a look at the Home Depot Group and its activities. A good knowledge of the group's sources of income is indeed essential if you want to understand what are its challenges for the future and thus better evaluate its growth opportunities:

The Home Depot Group, also known as The Home Depot Inc, is an American retail company. More specifically, it is currently the world's leading retailer of home improvement products.

In order to better understand the Group's activities, they can be divided into different divisions according to the share of turnover they generate and in this way:

  • Building materials, electrical products, lighting products and plumbing products account for the largest share of the group's turnover with 35.2%.
  • Then there are household appliances, decoration and storage products, floor coverings, paints and kitchen and bathroom products, which account for 32.8% of turnover.
  • Finally, the group's third source of revenue is hardware, DIY and garden accessories, which generate 31.9% of turnover.

The Home Depot group markets its products through a network of more than 2,296 stores, of which 1987 are in the United States, 182 in Canada and 127 in Mexico. At present, the group generates more than 92.5% of its sales in the United States.

Analysis Home Depot share price
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The major competitors of Home Depot

The Home Depot Group is of course not the only one operating in this market and industry, and so it faces some serious competitors that you should include in your analysis to anticipate any interesting price movements. Here is a quick overview of them:

Lowe's Home Improvement Warehouse

This American retail chain also specializes in the sale of construction and gardening equipment for individuals. It was founded in 1946 and today owns and operates 1,475 stores in 49 states.

Brico Dépôt

This other brand, this time French, is present in several countries around the world and is also a brand of DIY and home improvement stores. It currently owns and operates nearly 121 outlets and employs over 8,124 people.

Kingfisher 

This British company was established in 1982 and is a specialist DIY retailer. The Kingfisher group currently has over 1,200 stores in various countries including the UK, France, Poland, Russia, Spain, Portugal, Romania, Germany and Turkey.

Canadian Tire

Finally, the Canadian Tire Group is a Canadian company that was founded in 1922 and has become Canada's busiest home improvement and home products retailer. The company operates over 1,000 stores and gas bars. The group's owned brands include Canadian Tire, PartSource, Petroleum, Gas+, Lark's, Mark's Work Wearhouse, L'Equipeur, Helly Hansen, SportCheck, Sport Expert, Atmosphere, Pro Hockey Life, National Sport, Sport Rousseau and Hockey Experts.


The major partners of Home Depot

Of course, the Home Depot group can also count on certain strategic partners because it regularly sets up alliances with other companies or large groups as the two examples below show:

Walmart 

Notably, in 2021, The Home Depot Group has announced a strategic partnership with Walmart with the aim of helping it deliver its items in the US within one or two days. Home Depot said it would go through Walmart GoLocal, which is the US retailer's delivery service to other retailers in certain regions. After that, this experiment could be extended to other states before the end of 2021. The group said that the products eligible for this express delivery will, however, be limited to tools, fasteners, paints and items that can fit in a car.

Google 

In 2020, The Home Depot Group had also announced an extension of an existing partnership with Google Cloud Group. Recall that the two companies were already working together in an effort to increase its digital sales during the Covid pandemic. In addition, Home Depot has been using Gu Geyun since 2015. As has been the case for other retailers, the group has seen a real explosion in its digital sales during the global pandemic as well as changes in interactions between digital channels, customers, stores and employees with an 86% increase in online sales in 2020.

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Frequently Asked Questions

Who are the largest shareholders in Home Depot?

Home Depot's capital is currently owned in part by a few large institutional shareholders including The Vanguard Group with 8.36%, State Street Global Advisors Funds Management with 4.56%, Capital Research & Management World Investors with 3.86%, Satellite Asset Management with 2.69%, BlackRock Fund Advisors with 2.18%, Fidelity Management & Research with 1.70%, Wellington Management with 1.58%, Capital Research & Management Global Investors with 1.51%, Geode Capital Management with 1.50% and Northern Trust Investment with 1.40%.

When was The Home Depot founded?

The Home Depot Group was founded in 1978 by Bernard Marcus, Arthur Blank and Par Farrah. The idea of these three entrepreneurs was to create home furnishing stores that were larger than their competitors' stores. They obtained the necessary funds to develop this project with the help of banker Ken Langone.

How do I know how The Home Depot's stock price will perform?

If you want to be able to anticipate the Home Depot share price as well as possible, it will be necessary to carry out analyses of this stock. The first analysis is a technical analysis based on the study of stock charts and the second is a fundamental analysis, which is based on the study of news and market events.

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