FFilingSight

Home Depot Inc. (HD) 10-K Red Flags

Risk signals extracted deterministically from Home Depot Inc.’s SEC 10-K/10-Q XBRL filings — no LLM, every finding cites the underlying data.

Detected red flags (15)

  • Receivables outpacing revenue: Accounts receivable grew +14.2% YoY vs revenue growth of +3.2%. The +10.9% spread suggests extended credit terms, channel stuffing risk, or collection deterioration. Investigate the allowance for doubtful accounts and DSO trend.
  • Free cash flow deteriorating: FCF declined +22.5% YoY (from $16.32B to $12.65B). With OCF at $16.32B and capex at $3.68B, cash generation capacity is weakening — monitor for dividend/buyback sustainability.
  • NEW: Impairment charge: Impairment charge appears in recent filings but not in the prior 24-month period. Monitor for materiality.
  • Endogenous analysis: Revenue grew +3.2% but receivables grew +14.2% — the receivables-to-revenue gap suggests growth may be partially driven by extended credit terms rather than genuine demand. If DSO continues to rise, a revenue reversal or bad-debt charge could follow.
  • Endogenous analysis: Free cash flow declined despite stable or rising capex, indicating the cash burn is operational rather than investment-driven. This is a structural concern — cost reduction or asset sales may be needed to restore FCF.
  • 20 disclosure(s) dropped from prior year — reduced reporting granularity.
  • 1 new risk-language term(s) detected in filing text: Impairment charge.
  • Revenue grew **+3.2%** YoY to $164.68B.
  • 5-year revenue CAGR **+1.7%**; 10y CAGR +6.4%.
  • Market cap $343.31B at $344.30 per share.
  • Trailing P/E 24.20, P/S 2.08, P/B 24.74.
  • Composite risk: Elevated.
  • Leverage debt/equity 3.56 (high).
  • Receivables outpacing revenue: Accounts receivable grew +14.2% YoY vs revenue growth of +3.2%. The +10.9% spread suggests extended credit terms, channel stuffing risk, or collection deterioration. Investigate the allowance for doubtful accounts and DSO trend.
  • Free cash flow deteriorating: FCF declined +22.5% YoY (from $16.32B to $12.65B). With OCF at $16.32B and capex at $3.68B, cash generation capacity is weakening — monitor for dividend/buyback sustainability.

Filings & ownership

  • Latest annual report (10-K) filed Mar 18, 2026.
  • Latest quarterly report (10-Q) filed May 27, 2026.
  • 10 recent 8-K material-event filings in the index.
  • Recent insider Form 4s: 0 buy vs 0 sell transactions.
  • ~10,000+ recent 13F-HR filings reference Home Depot Inc.; broad institutional reporting.
  • Recent filers include LORING WOLCOTT & COOLIDGE FIDUCIARY ADVISORS /MA, LORING WOLCOTT & COOLIDGE FIDUCIARY ADVISORS /MA, LORING WOLCOTT & COOLIDGE FIDUCIARY ADVISORS /MA.
  • 1 recent 13D activist/beneficial-ownership filings — potential catalyst.
  • 19 recent 13G passive institutional ownership notices.

Full HD analyst report

Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.

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Not investment advice. FilingSight is an automated analytical research tool, not a registered investment advisor. Ratings and scores are quantitative analytical classifications, not buy or sell recommendations. Nothing here is personalized to your circumstances. Investing involves risk of loss — consult a licensed professional. See full disclosures.