HD FCF Yield Analysis
Updated 128h ago·SEC filings & market data
Key Takeaway
The current FCF Yield of 3.6% means that for every dollar invested in HD's stock, the company generates roughly 3.6 cents in free cash flow (cash left after operating and capital expenses) per year.
Sector Performance
42th percentileHD
3.6%
Sector Median
4.2%
Sector Avg
8.1%
Prior Period
3.7%(Jun 2026)
Deep Analysis
The current FCF Yield of 3.6% means that for every dollar invested in HD's stock, the company generates roughly 3.6 cents in free cash flow (cash left after operating and capital expenses) per year.
That is below the sector median of 4.4%, placing HD in the 39th percentile among its sector peers, so it offers less cash return relative to price than most competitors. Over the last eight quarters, the trend has been stable, with no year-over-year change available (N/A) and a quarter-over-quarter decline of -2.7%. The combination of a below-median FCF yield and a slight quarterly drop suggests limited immediate opportunity, but the stable long-term trend reduces downside risk. This metric supports the overall NEUTRAL verdict because the yield is not compelling enough for a bullish view nor weak enough to warrant bearishness.
Frequently Asked Questions
What does the FCF Yield tell investors about HD?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
Who are HD's closest peers by FCF Yield?
The closest peers by FCF Yield include: CMCSA (21.5%), NTRS (21.5%), CHTR (21.6%), F (22.4%), YELP (23.5%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master HD's Valuation
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3.6%
Sector Median
4.2%
Sector Avg
8.1%
How HD's FCF Yield compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.