Home Depot, Inc. (HD) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
Forensic Analysis · Retail / Consumer Discretionary · as of Sep 24, 2026
Home Depot, Inc. (HD)
A forensic read on Home Depot, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
B · Sound & dependable
Forensic grade
Safe
Financial health
7.8
Distress distance
Clean
Earnings quality
3
Forensic signals
21.0
P / E (ttm)
110.5%
ROE
$296.0B
Market cap
2.69%
Dividend yield
3.2%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Home Depot, Inc. earns a B (Sound & dependable) forensic quality grade, and its balance-sheet distress test reads 7.8, placing it in the Safe zone. 3 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+14.6%
FY2025→FY2026
Accruals ratio (% of NOA).Net operating assets grew +14.6% relative to their own average in FY2026 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. The build is led by receivables up +14% against revenue +3% and inventory up +10% against +3% in cost of sales. A cash-flow measure on the same base disagrees: reported earnings ran in line with operating cash by 4% of net operating assets, against an accruals ratio of 14.6%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.
82d
FY2025→FY2026
Inventory days.Days inventory outstanding moved from 76 to 82 FY2025→FY2026 (against cost of goods sold; inventory +10% vs +3% in cost of sales). Inventory is building a little faster than sales — watch for markdowns.
-0.3%/yr
FY2024–FY2026
Share count.Diluted share count changed -1% over the last 2 years to FY2026 (-0.3%/yr). Roughly flat — the count is neither shrinking nor growing meaningfully. Per-share value isn't being meaningfully helped or hurt by the count.
Key fundamentals
Latest Revenue$164.68B
Revenue Growth YoY+3.2%
Revenue CAGR (2yr)+3.8%
Net Margin8.6%
Free Cash Flow$12.65B
Return on Equity110.5%
Debt / Equity3.97x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Home Depot, Inc.'s actual 10-K/10-Q/8-K filings?