Home Depot (HD - Full Stock Analysis): A honest day's earnings
HD at a glance
HD owns and operates retail channels (both digital and physical) for consumer goods and services related to home improvement. It is the largest home improvement business in North America with an international presence. Through these retail channels, they offer the following (source):
Physical products: HD offers over 1 million SKUs for retail.
Installation services: HD offers “do it for me” and “do it yourself” installation services to its clients which provides services ranging from simple consultation to custom installation.
Professional service referral: HD refers customers to professional service providers for a referral fee.
Credit: HD offers credit facilities through 3rd party providers including credit cards and “buy now, pay later” payment methods. This offering is mostly for home depot’s professional customers who purchase materials in bulk consistently.
The home improvement retail industry
The home improvement retail industry had sales of $540B in 2021. This figure is expected to grow at a rate of 4.6% CAGR to reach $620B by 2025 (source) (source).