HD Return on Equity (ROE) Analysis
Higher than 0% of CONSUMER CYCLICAL sector peers
Updated 201h ago·SEC filings & market data
Key Takeaway
Return on equity (ROE) measures how much profit a company generates per dollar of shareholders’ equity, so HD’s current 128.4% means it earned $1.284 for every dollar of equity in the period.
Sector Performance
0th percentileHD
104.3%
Sector Median
104.3%
Sector Avg
104.3%
Prior Period
128.4%(Aug 2026)
Deep Analysis
Return on equity (ROE) measures how much profit a company generates per dollar of shareholders’ equity, so HD’s current 128.4% means it earned $1.284 for every dollar of equity in the period.
That level towers over the sector median of 13.4%, placing HD in the 98th percentile among its peers. The trend direction is N/A, with the year-over-year change listed as N/A and the quarter-over-quarter change also N/A, so there is no evidence of improvement or deterioration from prior periods. The combination of an extreme ROE with no trend data implies the result may be driven by unusual factors, such as a small or shrinking equity base, rather than steady operational strength, creating risk for investors. This metric supports the overall CAUTIOUS verdict because an ROE that far exceeds the sector median without any observable trend raises questions about sustainability and warrants caution rather than confidence.
Frequently Asked Questions
What does the Return on Equity (ROE) tell investors about HD?
ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.
How is the Return on Equity (ROE) calculated?
Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.
How does HD's Return on Equity (ROE) compare to its sector?
HD's Return on Equity (ROE) of 104.3% compares to a CONSUMER CYCLICAL sector median of 104.3%, placing it in the 0th percentile.
Learn More About Return on Equity (ROE)
The Formula
Net Income / Shareholders' Equity
Why It Matters
ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.
Master HD's Valuation
Get the complete institutional research report covering all fundamental and technical metrics.
View full HD research report →HD
104.3%
Sector Median
104.3%
Sector Avg
104.3%
How HD's Return on Equity (ROE) compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.