SWOT Analysis - Home Depot
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The Home Depot, Inc.
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TABLE OF CONTENTS
1 The Home Depot, Inc. .................................................................................................................................. 6
2 The Home Depot, Inc. - Key Employees ..................................................................................................... 7
3 The Home Depot, Inc. - Key Employees Biographies ................................................................................ 9
4 The Home Depot, Inc. - Major Products and Services ............................................................................. 10
5 The Home Depot, Inc. - History ................................................................................................................. 11
6 The Home Depot, Inc. - Company Statement ........................................................................................... 14
7 The Home Depot, Inc. - Locations and Subsidiaries ............................................................................... 15
7.1 The Home Depot, Inc. - Head Office ........................................................................................................................ 15
7.2 The Home Depot, Inc. - Other Locations and Subsidiaries ...................................................................................... 15
8 The Home Depot, Inc. - Business Analysis .............................................................................................. 16
8.1 The Home Depot, Inc. - Company Overview ............................................................................................................ 16
8.2 The Home Depot, Inc. - Business Description.......................................................................................................... 16
8.2.1 Home Improvement Business Segment ........................................................................................................... 17
9 The Home Depot, Inc. - SWOT Analysis ................................................................................................... 18
9.1 The Home Depot, Inc. - SWOT Analysis - Overview ................................................................................................ 18
9.2 The Home Depot, Inc. - Strengths ............................................................................................................................ 18
9.2.1 Strength - Improving Financial Condition ......................................................................................................... 18
9.2.2 Strength - Store Network .................................................................................................................................. 18
9.2.3 Strength - Wide Customer Groups ................................................................................................................... 18
9.2.4 Strength - Diversified Stores, Product and Service Portfolio ............................................................................ 18
9.3 The Home Depot, Inc. - Weaknesses ....................................................................................................................... 19
9.3.1 Weakness - Limited Financial Leverage ........................................................................................................... 19
9.3.2 Weakness - Product Recalls............................................................................................................................. 19
9.4 The Home Depot, Inc. - Opportunities ...................................................................................................................... 19
9.4.1 Opportunity - Growing E-Retail Industry ........................................................................................................... 19
9.4.2 Opportunity - Strategic Acquisitions ................................................................................................................. 19
9.4.3 Opportunity - Increase in Consumer Spending in the US ................................................................................ 19
9.5 The Home Depot, Inc. - Threats ............................................................................................................................... 20
9.5.1 Threat - Rise in Labor Wages in the US ........................................................................................................... 20
9.5.2 Threat - Increase in Counterfeit Products ......................................................................................................... 20
9.5.3 Threat - Expansion by Competitor .................................................................................................................... 20
10 The Home Depot, Inc. - Company Financial Analysis ............................................................................. 21
10.1 The Home Depot, Inc. - Five Year Snapshot: Overview of Financial and Operational Performance Indicators ...... 21
11 The Home Depot, Inc. - Interim ratios ....................................................................................................... 23
11.1.1 The Home Depot, Inc. - Financial ratios: Capital Market Ratios ...................................................................... 23
11.2 The Home Depot, Inc. - Financial Performance and Ratio Charts ........................................................................... 24
11.2.1 The Home Depot, Inc. - Revenue and Operating margin ................................................................................. 24
11.2.2 The Home Depot, Inc. - Net Debt vs. Gearing Ratio ........................................................................................ 25
11.2.3 The Home Depot, Inc. - Operational Efficiency ................................................................................................ 26
11.2.4 The Home Depot, Inc. - Solvency ..................................................................................................................... 27
11.2.5 The Home Depot, Inc. - Valuation .................................................................................................................... 28
11.3 The Home Depot, Inc. - Competitive Benchmarking ................................................................................................ 29
11.3.1 The Home Depot, Inc. - Market Capitalization .................................................................................................. 30
11.3.2 The Home Depot, Inc. - Efficiency .................................................................................................................... 31
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11.3.3 The Home Depot, Inc. - Turnover: Inventory and Asset ................................................................................... 32
11.3.4 The Home Depot, Inc. - Liquidity ...................................................................................................................... 33
12 The Home Depot, Inc. - Mergers & Acquisitions and Partnerships ........................................................ 34
12.1 The Home Depot, Inc. - M&A and Partnerships Strategy ......................................................................................... 34
13 The Home Depot, Inc. - Recent Developments ........................................................................................ 36
14 Appendix .................................................................................................................................................... 39
14.1 Methodology ............................................................................................................................................................. 39
14.2 The Home Depot, Inc. - Ratio Definitions ................................................................................................................. 39
14.3 Disclaimer ................................................................................................................................................................. 44
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List of Tables
Table 1: The Home Depot, Inc. - Key Employees ..................................................................................................................... 7
Table 2: The Home Depot, Inc. - Key Employees Biographies ................................................................................................. 9
Table 3: The Home Depot, Inc. - Major Products and Services .............................................................................................. 10
Table 4: The Home Depot, Inc. - History ................................................................................................................................. 11
Table 5: The Home Depot, Inc. - Subsidiaries ........................................................................................................................ 15
Table 6: The Home Depot, Inc. - Annual ratios ....................................................................................................................... 21
Table 7: The Home Depot, Inc. - Interim ratios ....................................................................................................................... 23
Table 8: The Home Depot, Inc. - Capital Market Ratios.......................................................................................................... 23
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List of Figures Figure 1: The Home Depot, Inc. - Revenue and Operating Profit ........................................................................................... 24
Figure 2: The Home Depot, Inc. - Net Debt vs. Gearing Ratio ................................................................................................ 25
Figure 3: The Home Depot, Inc. - Operational Efficiency ........................................................................................................ 26
Figure 4: The Home Depot, Inc. - Solvency ............................................................................................................................ 27
Figure 5: The Home Depot, Inc. - Valuation ............................................................................................................................ 28
Figure 6: The Home Depot, Inc. - Market Capitalization ......................................................................................................... 30
Figure 7: The Home Depot, Inc. - Efficiency ........................................................................................................................... 31
Figure 8: The Home Depot, Inc. - Turnover: Inventory and Asset .......................................................................................... 32
Figure 9: The Home Depot, Inc. - Liquidity .............................................................................................................................. 33
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1 The Home Depot, Inc.
Fast Facts
Headquarters Address 2455 PACES FERRY ROAD,ATLANTA,,30339-4024,United States of America
Telephone +1 800 5533199
Fax +1 877 4969470
Website www.homedepot.com
Ticker Symbol , Exchange Name HD,New York Stock Exchange
Number of Employees 365,000
Fiscal Year End February
Revenue (US$ million) 78,812
SWOT Analysis
Strengths Weaknesses
Diversified Stores, Product and Service Portfolio
Limited Financial Leverage
Improving Financial Condition Product Recalls
Store Network
Wide Customer Groups
Opportunities Threats
Growing E-Retail Industry Expansion by Competitor
Increase in Consumer Spending in the US
Increase in Counterfeit Products
Strategic Acquisitions Rise in Labor Wages in the US
Share Data
Share price (US$) as on 29 Aug 2014 93.5
EPS (US$) 3.76
Market Capitalization (US$ million) 125,844
Enterprise Value (US$ million) 138,364
Shares outstanding (million) 1,346
Financial Snapshot
Operating Performance
The company reported revenue of US$78,812 million during the fiscal year 2014 (2014). The company's revenue grew at a CAGR of 4.47% during 2010–2014, with an annual growth of 5.43% over 2013. In 2014, the company recorded an operating margin of 11.63%, as against 10.39% in 2013.
Revenue and Margins
Return on Equity
The company recorded a return on equity (ROE) of 43.00% for the fiscal year 2014, as compared to its peers, Wal-Mart Stores, Inc. (Ticker: WMT), Best Buy Co, Inc. (Ticker: BBY) and Sears Holdings Corporation (Ticker: SHLD), which recorded ROEs of 21.01%, 13.35% and -78.49% respectively. Furthermore, the company reported an operating margin of 11.63% in 2014.
Return on Equity
Liquidity Position
The company reported a current ratio of 1.42 in 2014, as compared to its peers, Wal-Mart Stores, Inc., Best Buy Co, Inc. and Sears Holdings Corporation, which recorded current ratios of 0.88, 1.41 and 1.09 respectively. As of February 2014, the company recorded cash and short-term investments of worth US$1,929 million, against US$33 million current debt. The company reported a debt to equity ratio of 1.18 in 2014 as compared to its peers, Wal-Mart Stores, Inc., Best Buy Co, Inc. and Sears...
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2 The Home Depot, Inc. - Key Employees
Table 1: The Home Depot, Inc. - Key Employees
Name Job Title Board Level Since Age
Francis S. Blake Chairman, Chief Executive Officer Executive Board 2007 64
Joe McFarland President - Western Division Senior Management
Aaron Flowe President - Northern Division Senior Management
Ann-Marie Campbell President - Southern Division Senior Management
Bill Lennie President - The Home Depot Canada Senior Management
Brad Shaw Vice President - Corporate Communications & External Affairs
Senior Management
Cara Kinzey Senior Vice President - IT Store, Field and Corporate Support
Senior Management 2008
Carol B. Tome Chief Financial Officer, Executive Vice President
Senior Management 2007 57
Craig A. Menear President - US Retail Senior Management 2014 56
Craig Menear President, Chief Executive Officer Senior Management 2014
Giles Bowman Senior Vice President - - Merchandising, Building Materials
Senior Management
Gordon Erickson Senior Vice President - Merchandising Services
Senior Management
Hal Lawton Senior Vice President - Hardlines Senior Management
John Deaton Senior Vice President - Brand and Product Development
Senior Management
Kevin Hofmann President - Online, Senior Vice President - Online
Senior Management
Kevin Scott Senior Vice President - Merchandising Décor
Senior Management
Lyne Castonguay Senior Vice President - Home Services Senior Management
Marc D. Powers Senior Vice President - Operations Senior Management
Mark Q. Holifield Executive Vice President - Supply Chain and Product Development
Senior Management 2014 57
Marvin R. Ellison Executive Vice President - U.S. Stores Senior Management 2008 49
Matthew A. Carey Chief Information Officer, Executive Vice President
Senior Management 2008 49
Ricardo Saldivar President - The Home Depot, Mexico Senior Management
Richard McPhail Senior Vice President - Global Financial Planning/Analysis and Strategic Business Development
Senior Management
Ted Decker Executive Vice President - Merchandising Senior Management 2014
Teresa Wynn Roseborough Executive Vice President, General Counsel, Secretary
Senior Management 2011 55
Timothy M. Crow Executive Vice President - Human Resources
Senior Management 2007 58
Trish Mueller Chief Marketing Officer, Senior Vice President
Senior Management
Albert P. Carey Director Non Executive Board 2008 62
Ari Bousbib Director Non Executive Board 2007 53
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Table 1: The Home Depot, Inc. - Key Employees
Name Job Title Board Level Since Age
Armando Codina Director Non Executive Board 2007 67
F. Duane Ackerman Director Non Executive Board 2007 71
Gregory D. Brenneman Director Non Executive Board 2000 52
Helena B. Foulkes Director Non Executive Board 2013 49
J. Frank Brown Director Non Executive Board 2011 57
Karen L. Katen Director Non Executive Board 2007 64
Mark Vadon Director Non Executive Board 2012 44
Wayne M. Hewett Director Non Executive Board 2014 49
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3 The Home Depot, Inc. - Key Employees Biographies
Table 2: The Home Depot, Inc. - Key Employees Biographies
Employee Details Biography
Carol B. Tome
Job Title : Chief Financial Officer, Executive Vice President
Since : 2007
Age :57
Carol B. Tome is the Executive Vice President - Corporate Services of the company since 2007. She is also the Chief Financial Officer of the company since 2001. She served as the Senior Vice President – Finance and Accounting/Treasurer from 2000 through 2001 and as Vice President and Treasurer from 1995 through 2000. From 1992 until 1995, when she joined the company, she was Vice President and Treasurer of Riverwood International Corporation, a provider of paperboard packaging. She serves as a Director of United Parcel Service, Inc. and the Federal Reserve Bank of Atlanta.
Craig Menear
Job Title : President, Chief Executive Officer
Since : 2014
Mr. Menear will assume the position as President and Chief Executive Officer effective from November 1, 2014.
Francis S. Blake
Job Title : Chairman, Chief Executive Officer
Since : 2007
Age :64
Francis S. Blake is the Chairman and the Chief Executive Officer of the company since 2007. Prior to this, he served as the company's Executive Vice President – Business Development and Corporate Operations. He was formerly the Deputy Secretary of Energy from 2001 until 2002. From 2000 until 2001, he was a Senior Vice President at General Electric Company, and was the Vice President of Business Development at GE Power Systems from 1996 until 2000. He also serves as a Director of The Southern Company.
Matthew A. Carey
Job Title : Chief Information Officer, Executive Vice President
Since : 2008
Age :49
Matthew A. Carey has been the Executive Vice President and Chief Information Officer of Home Depot since 2008. Prior to this, he served as the Senior Vice President and Chief Technology Officer at eBay. Prior to joining eBay in 2006, Mr. Carey spent more than 20 years with Wal-Mart, where he was the Senior Vice President and Chief Technology Officer.
Trish Mueller
Job Title : Chief Marketing Officer, Senior Vice President
Trish Mueller is the Chief Marketing Officer of the company. Prior to this, she was Vice President- Advertising of the company. Previously, she served as Senior Vice President, advertising and marketing for The Sports Authority. In addition, she also held several senior officer marketing management roles at American Signature.
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4 The Home Depot, Inc. - Major Products and Services
Home Depot is the world's largest home improvement specialty retailer and the second largest retailer in the United States. The company's key products, services and brands include the following:
Table 3: The Home Depot, Inc. - Major Products and Services
Products:
Appliance
Bath and Faucets
Building Materials
Decor
Doors and Windows
Electrical
Flooring and Area Rugs
Heating and Cooling
Kitchen
Lawn and Garden Equipment
Lighting and Ceiling Fans
Lumber and Composites
Outdoor Living
Paints
Plumbing
Storage and Organization
Tools and Hardware
Services:
Installation Services
E-retail
Home Delivery
Gift Cards
Truck Rental
Brands:
HDX
Husky
Hampton Bay
Home Decorators Collection
Glacier Bay
Vigoro
Exclusive Brands
Defiant
Everbilt
RIDGID
Ryobi
CE Tech
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5 The Home Depot, Inc. - History
Table 4: The Home Depot, Inc. - History
Year Event type Description
2014
Acquisitions/Mergers/Takeovers
The company acquired Blinds.com.
2014
New Products/Services
The company Launches the Next Generation of Outdoor Power.
2014
Corporate Changes/Expansions
The company opened a new distribution center in Locust Grove, Georgia, Atlanta, the US.
2013
Corporate Awards
The company received US.EPA 2013 SmartWay excellence award.
2013
Corporate Awards
The company received WaterSense 2013 retail partner of the year award.
2012
Acquisitions/Mergers/Takeovers
The company acquired U.S. Home Systems, Inc., an exclusive provider of kitchen and bath refacing products and services.
2012
Corporate Changes/Expansions
The company announced that it is closing its remaining seven big box stores in China as it is shifting its focus towards specialty stores and online offerings in China.
2012
Acquisitions/Mergers/Takeovers
The company acquired Redbeacon, an online home services platform connecting consumers with contractors for their home maintenance, repair and remodeling needs.
2012
Acquisitions/Mergers/Takeovers
The company acquired BlackLocus, a data analytics and pricing company.
2010
New Products/Services
The company launched its new online How-To" Community for Do-it-Yourself services
2009
New Products/Services
The company along with Martha Stewart Living Omnimedia, Inc. (MSLO) entered into an agreement to develop an exclusive Martha Stewart Living brand of interior and exterior paints.
2009
Business / Operations Closure
The company closed its EXPO Business.
2009
Acquisitions/Mergers/Takeovers
The company's subsidiary, Home Depot USA, Inc was acquired by US Industrial REIT III
2009
Corporate Awards
The company has obtained Environmental Excellence Award from the US Environmental Protection Agency SmartWay Transport Partnership for conserving energy and lowering green house gas emissions.
2009
Contracts/Agreements
The company signed an agreement with Martha Stewart Living Omnimedia, Inc to develop an exclusive Martha Stewart Living brand of home improvement products that will provide consumers with distinctive merchandise in select categories including Outdoor Living, Home Organization and Home Decor
2008
New Products/Services
The company launched a national in-store, consumer compact fluorescent light (CFL) bulb recycling program.
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Table 4: The Home Depot, Inc. - History
Year Event type Description
2007
Contracts/Agreements
The company and National Football League entered into a multi year marketing partnership which designates The Home Depot as the official home improvement sponsor of the National Football League.
2007
Contracts/Agreements
The company entered into an agreement to Sell HD Supply to Private Equity Group.
2006
Acquisitions/Mergers/Takeovers
The company completed the acquisition of Hughes Supply.
2006
Contracts/Agreements
The company signed a definitive agreement to acquire Home Decorators Collection.
2006
Contracts/Agreements
The company signed a definitive agreement to acquire The Home Way, China's first home improvement retailer.
2005
Contracts/Agreements
The company and Mark Burnett Productions entered into an alliance to develop programs which highlighted Home Depot's products and services in Burnett-produced television programming.
2004
Contracts/Agreements
The company signed a definitive agreement to acquire Home Mart.
2004
Acquisitions/Mergers/Takeovers
The company acquired Creative Touch Interiors (CTI).
2004
Contracts/Agreements
The company entered into an agreement to acquire White Cap Construction Supply.
2003
Contracts/Agreements
The company entered into an agreement to acquire Tampa-based Installed Products USA and Installed Products of California.
2003
Contracts/Agreements
The company signed a definitive agreement to acquire Atlanta-based RMA Home Services.
2002
Business / Operations Closure
The company sold its four stores in Argentina.
2002
Contracts/Agreements
The company entered into an agreement to purchase Del Norte, a four-store chain of home improvement stores in Juarez, Mexico.
2001
Acquisitions/Mergers/Takeovers
The company acquired the 'Your "other" Warehouse' company.
2001
Business / Operations Closure
The company sold five stores in Chile to Falabella.
2001
Acquisitions/Mergers/Takeovers
The company acquired Total Home, a large Mexican home improvement retailer.
2000
Corporate Changes/Expansions
The company established the first Home Depot stores in Argentina and Canada, and also opened a test store in Plano, Texas.
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Table 4: The Home Depot, Inc. - History
Year Event type Description
2000
Acquisitions/Mergers/Takeovers
The company acquired Apex Supply.
1999
Acquisitions/Mergers/Takeovers
The company acquired its wholly owned subsidiary, Georgia Lighting.
1998
Corporate Changes/Expansions
The company entered the Puerto Rican market.
1997
Acquisitions/Mergers/Takeovers
The company acquired National Blinds & Wallpaper.
1994
Acquisitions/Mergers/Takeovers
The company acquired Aikenhead to enter the Canadian market.
1991
Incorporation/Establishment
The company launched its first Expo Design Center in San Diego.
1986
Incorporation/Establishment
The company opened its first super-sized store.
1984
Stock Listings/IPO
The company moved its listing from NASDAQ to the New York Stock Exchange.
1981
Stock Listings/IPO
The company got listed on NASDAQ.
1978
Incorporation/Establishment
Home Depot was established in Atlanta, Georgia.
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6 The Home Depot, Inc. - Company Statement The statement of Management’s Discussion and Analysis of Financial Condition and Results of Operations. The statement is taken from 2014 10k filing of the company. For the fiscal year ended February 2, 2014 ("fiscal 2013"), we reported Net Earnings of $5.4 billion and Diluted Earnings per Share of $3.76 compared to Net Earnings of $4.5 billion and Diluted Earnings per Share of $3.00 for the fiscal year ended February 3, 2013 ("fiscal 2012"). The results for fiscal 2012 included a total charge of $145 million, net of tax, related to the closing of our remaining seven big box stores in China ("China store closings") in fiscal 2012, which had a negative impact of $0.10 to Diluted Earnings per Share. Excluding the charge related to the China store closings, Net Earnings were $4.7 billion and Diluted Earnings per Share were $3.10 for fiscal 2012. Net Sales increased 5.4% to $78.8 billion for fiscal 2013 from $74.8 billion for fiscal 2012. Our comparable store sales increased 6.8% in fiscal 2013, driven by increased comparable store customer transactions and comparable store average ticket. Comparable store sales for our U.S. stores increased 7.5% in fiscal 2013. Fiscal 2013 consisted of 52 weeks compared with 53 weeks for fiscal 2012. The 53rd week added approximately $1.2 billion in Net Sales and increased Diluted Earnings per Share by approximately $0.07 for fiscal 2012. Net Sales Fiscal 2013 consisted of 52 weeks compared to 53 weeks in fiscal 2012. Net Sales for fiscal 2013 increased 5.4% to $78.8 billion from $74.8 billion for fiscal 2012. The increase in Net Sales for fiscal 2013 reflects the impact of positive comparable store sales for fiscal 2013, partially offset by $1.2 billion of Net Sales attributable to the additional week in fiscal 2012 . Total comparable store sales increased 6.8% for fiscal 2013 compared to an increase of 4.6% for fiscal 2012. The positive comparable store sales for fiscal 2013 reflect a number of factors, including the execution of our key initiatives, continued strength in our core categories and an improved U.S. housing market. All of our departments posted positive comparable store sales for fiscal 2013. Comparable store sales for our Kitchen, Electrical, Lumber, Plumbing, Lighting, Bath and Indoor Garden product categories were above or at the Company average for fiscal 2013. Comparable store sales for our Tools, Paint, Flooring, Décor, Hardware, Outdoor Garden, Millwork and Building Materials product categories were positive for fiscal 2013. Further, our comparable store customer transactions increased approximately 3.4% for fiscal 2013 and comparable store average ticket increased approximately 3.3% for fiscal 2013 due in part to strong sales in our appliance business and continued recovery in sales to our professional customers. In fiscal 2013, we repurchased a total of $8.5 billion or 111 million shares of our outstanding stock. At the end of fiscal 2013, we had $8.5 billion remaining under our current share repurchase authorization. Since 2002, we have repurchased approximately 1.1 billion shares, returning more than $46 billion to our shareholders. In early 2014, we announced a 21 percent increase in our quarterly dividend to $0.47 per share, or an annual dividend of $1.88 per share. In 2014, we will continue on the path of gaining share and improving customer service, as we also strive for improved financial performance. I hope you will visit us often in our stores and online.
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7 The Home Depot, Inc. - Locations and Subsidiaries
7.1 The Home Depot, Inc. - Head Office
The Home Depot, Inc.
2455 PACES FERRY ROAD
ATLANTA
Zip: 30339-4024
United States of America
Tel: + 1 800 5533199
Fax: + 1 877 4969470
7.2 The Home Depot, Inc. - Other Locations and Subsidiaries
Table 5: The Home Depot, Inc. - Subsidiaries
Homer TLC, Inc
United States of America
Home Depot U.S.A., Inc.
Atlanta
United States of America
Home Depot Services, LLC
United States of America
Home Depot International, Inc
Atlanta
United States of America
HD Development Holdings, Inc.
United States of America
HD Development of Maryland, Inc.
United States of America
Home Depot Store Support, LLC
United States of America
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8 The Home Depot, Inc. - Business Analysis
8.1 The Home Depot, Inc. - Company Overview
The Home Depot, Inc. (Home Depot) carries out the retailing of home improvement products. It offers products including flooring, tools, paint, lumber, kitchen, plumbing, indoor garden, bath, building materials, hardware, décor, outdoor garden, millwork, plumbing, electrical and lighting. It also provides various services including information technology, credit card services, home delivery, e-retail, truck rental and installation services. The company caters mainly to three types of customers, namely, Do-It-Yourself (D-I-Y), Do-It-For-Me (D-I-F-M), and Professional customers. Geographically company operates in the US, Puerto Rico, the US Virgin Islands, Guam, Canada, China, and Mexico. The company is headquartered in Atlanta, the United States. The company strategically focuses on enhancement of its customer service, product authority, productivity and efficiency and interconnected retail for its business development.
8.2 The Home Depot, Inc. - Business Description
Home Depot is one of the largest home improvement retailers in the US. It sells a variety of merchandise including flooring, Tools, Paint, Lumber, Kitchen, Plumbing, Indoor Garden, Bath, Building Materials, Hardware, Décor, Outdoor Garden, Millwork, Plumbing, Electrical and Lighting products, and also provides services such as installation service, home delivery, truck rental and gift cards. The company’s merchandise is sold in a sales area of approximately 104,000 sq. ft. of enclosed space, with 24,000 additional sq. ft. of outside garden area. As of February 2014, the company operated a total of 2,263 Home Depot stores, out of which 90% were owned by the company with holding an area of approximately 201.3 million sq. ft., and 10% of stores leased with an area of approximately 24.7 million square feet. The company offers its products under 15 categories including: flooring, tools, paint, lumber, kitchen, plumbing, indoor garden, bath, building materials, hardware, décor, outdoor garden, millwork, plumbing, electrical and lighting. The company under Kitchen category offer products such as Cabinets and cabinets hardware, kitchen sink, carts, islands, and utilities tables, countertops and backsplashes, kitchen faucets, water dispensers and filters, cooking and food preparation, dining and entertainment, kitchen storage and organization, small appliance and related categories. In FY2014 this segment reported US$7,978 million, an increase of 13.6% over previous year, which contributed 10.1% in total revenue. Under the Indoor Garden category company offers product such as garden plants and flowers, and seeds. In FY2014 this segment reported US$7,072 million, an increase of 5.6% over previous year, which contributed 9% towards total revenue. The company under Paint category offers products such as interior paint and stain, beck and patio restoration, rubberized coatings, spray paint, paint thinner, solvent and cleaners, exterior paint and stain, concrete and garage floor paint, paint sprayer, caulking and sealants, panit brushes, paint roller, paint color and sample, sandpaper, patching and repairs, furniture paint and crafts, traps, drops, cloths and plastic sheeting, primers and related products. In FY2014 this segment reported US$ 7,026 million, an increase of 3.9% over previous year, with contribution of 8.9% in total revenue. Under the Outdoor Garden, the company offers products such as lawn mowers, outdoor power equipments, watering irrigation, lawn care, pots and planters and garden tool. In FY2014 this segment reported US $6,094 million, an increase of 3.2% over previous year, with contribution of 7.7% towards total revenue. Company under Lumber category offers lumber and composites, fencing, parks, playsets and playhouse and decking products. In FY2014 this segment reported US$5,814 million, an increase of 6.6% over previous year, which contribute 7.4% in total revenue. Home Depot under Flooring segment offers aera rugs and mats, carpets and carpet tiles, exercise and gym flooring, laminate flooring, tiles, tile tools and tile set, under floor heating, vinyl flooring and resilient flooring and wood flooring. In FY2014 this segment reported US$5,734 million, an increase of 4.8% over previous year, which contribute 7.3% in total revenue. The company under Building Materials offers products such as acrylic sheets, boat docks and hardware, builder’s hardware, ceilings, concrete, cement and masonry, drywall, fireplace and hearth, insulation, ladders, and safety equipments. In FY2014 this segment generates US$5,729 million, an increase of 2.4% over previous year, with contribution of 7.3% in total revenue. In Plumbing category company offers products such as drain openers, pipe insulation, pipes, fittings and valves, plumbing parts and repairs, plumbing tools, pressure tanks, pumps, stops, drains and drain plugs, water heaters, and utility sinks. In FY2014 this segment generates US$5,437 million, an increase of 6.1% over previous year, with contribution of 6.9% towards total revenue.
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Company under Electricals offers products such as, alternative energy solution, dimmers, switches and outlets, door bells and intercoms, electrical boxes , conduit and fittings, electrical tools and accessories, extension cords and surge protectors, fire safety, home automation, motors and parts, power distribution and wall plates and accessories. In FY2014 this segment generates US$5,364 million, an increase of 6.4% over previous year, with contribution of 6.8% in total revenue. The company under Tools segment offers products such as, power tools, hand tools, tool storage, welding and soldering. In FY2014 this segment reported revenue of US$5,039 million, an increase of 5.1% over previous year, with contribution of 6.4% towards total revenue. In Hardware category company offers, door knobs and hardware, cabinet and furniture hardware, fasteners, mailboxes, ladders and wet/dry vacuums. This segment contributed US$4,718 million of revenue an increase of 3%, which contribute 6% towards total revenue in FY2014. Under the Millwork segment the company offers products such as Moulding and Paneling, columns and accessories, corbels, dowels, faux woods beams and interior stair parts. In FY2014 this segment reported revenue of US$4,386 million, an increase of 2.4% over previous year, with contribution of 5.6% towards total revenue. The company’s Bath segment offers products such as bathroom accessories, bathroom faucets, bathroom safety and accessibility, bathroom sinks, bathroom vanities and cabinets, bathtubs and whirlpools, showers, toilets seats and bidets. In FY2014 this segment reported revenue of US$3,706 million, an increase of 4.3% over previous year, with contribution of 4.7% towards total revenue. In Lighting category the company offers products such as indoor lighnting accessories, light bulbs, led lights, chandeliers and pendants, lamps and shades, sconces and vanity lighting and outdoor lighting. This segment contributed US$2,369 million of revenue an increase of 5.3%, which contribute 3% towards total revenue in FY2014. The company under Décor division offer products such as artificial plants and flowers, bedding, blinds and window treatments, drapery hardware, drapes and curtains, furniture, holiday decorations, home accents, shelves, wall décor and wallpaper. In FY2014 this segment reported revenue of US$2,346 million, an increase of 5.4% over previous year, with contribution of 3% towards total revenue. Apart from its regular store company also operates online store through www.homedepot.com. Which offers all products which are offered in stores. Home Depot, through its subsidiaries including Home Depot International, Inc., Home Depot U.S.A., Inc., Homer TLC, Inc., and HD Development of Maryland, Inc., operates in the US, Canada, China and Mexico. It also has sourcing offices in China, India, Italy, Mexico and Canada. The company operates through one segment consisting mainly of North America operations.
8.2.1 Home Improvement Business Segment
Financials For the fiscal year ended 2013, the company recorded revenue of $74,754m, as compared to $70,395m in the previous year, registering an increase of 6.19%.
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9 The Home Depot, Inc. - SWOT Analysis
9.1 The Home Depot, Inc. - SWOT Analysis - Overview
Home Depot is the retailer of home improvement products. improved financial performance, wide store network, wide customer group and diversified store, product and service portfolio are the key strength of the company whereas limited financial leverage and product recall are area of concern. Going forward rise in labor wages in the US, increase in counterfeit product and expansion by competitor may pose challenges to the company’s future growth. However, growing e- retail industry, strategic acquisition and increase in consumer spending may provide ample growth opportunities to the company.
9.2 The Home Depot, Inc. - Strengths
9.2.1 Strength - Improving Financial Condition
The company reported revenue of US$78,812 million for the FY2014 as against US$74,754 million in FY2013, an increase of 5.4%. The company’s operating profit increased by 18% over FY2013 and reached US$9,166 million during the FY2014. In addition, its net profit also registered an increase of 18.7% over FY2013 and reported US$5,385 million in FY2014. As a result, the company’s operating margin and net profit margin increased to 11.6% and 6.8% in FY2014 from 10.4% and 6.1% in FY2013, respectively. This shows management's high focus on improving profitability. In addition, the company also witnessed an increase in its profitability ratios. Its profitability ratios, such as return on equity, return on capital employed, return on assets and return on fixed assets increased to 43%, 30.8%, 13.3% and 36.3% in FY2014 from 25.5%, 26.2%, 11% and 30.2%, respectively in FY2013. Increasing profitability ratios indicate the company’s sturdy performance and its ability to deliver the returns expected by its shareholders.
9.2.2 Strength - Store Network
Home Depot’s global presence widens its reach. The company is the largest home improvement retailer in the US, Canada and Mexico. At the end of the FY2012, the company operated a total of 2,263 retail stores, which included 1,977 Home Depot stores in the United States, 180 stores in Canada, and 106 stores in Mexico. The company owned over 90% of its store covering an area of approximately 210.3 million sq. ft., and around 10% of its stores leased to third party vendors with a total area of 24.7 million sq. ft. Home Depot is also the largest home improvement retailer in Mexico. Besides, the company also operates its procurement offices in the US, Canada, China, Mexico and India. A global presence enables the company a broader and varied customer base.
9.2.3 Strength - Wide Customer Groups
Home Depot’s customer centric business has given it a wide customer base, which mitigates its business risk. Each week, Home Depot stores are visited by over 22 million people. These customers are segmented into three categories, namely do- it-yourself customers, do-it-for-me customers and professional customers. The do-it-yourself customers are typically home owners who purchase products and complete their own projects and installations. Do-it-for-me customers are home owners who purchase materials themselves and hire a third party to complete the projects and installations. The professional customers are professional remodelers, general contractors, repairmen, small business owners and tradesmen. These different categories of customers spread out the business risk of the company by reducing its dependence on any one particular customer segment.
9.2.4 Strength - Diversified Stores, Product and Service Portfolio
Home Depot’s diversified range of products and services and its wide network of stores enable it to improve sales and increase profitability. Its store inventory consists of almost 40,000 different kinds of building materials, home improvement supplies, appliances, and lawn and garden products. The products offered by the company mainly fall into four categories, namely plumbing, electrical and kitchen; hardware and seasonal; building materials, lumber and millwork; and paint and flooring. In addition, the company offers a variety of installation services through pre-screened independent contractors. These installation services are offered for products ranging from windows to water heaters, floors to roofs, and kitchen cabinets to vinyl siding. It also offers professional installation of products such as generators, furnaces and central air systems through its in-home sales programs. Besides, Home Depot provides credit services and assistance with the selection of tools and supplies to its customers. Such diversified stores, product and service portfolio enables the company in meeting the varied needs of its customers.
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9.3 The Home Depot, Inc. - Weaknesses
9.3.1 Weakness - Limited Financial Leverage
Limited financial leverage or solvency position of the company may impact its ability to borrow and repay money, which in turn affects its business operations. The solvency position of Home Depot’s may be limited due to significant debt funding than equity. The company recorded debt to equity ratio of 1.17 at the end of FY2014 against its competitors such as Amazon.com, Inc., Best Buy Co, Inc. and Big Lots, Inc., which reported values of 0.53,0.42 and 0.08, respectively. Furthermore, the debt level of the company was reported at US$14,724 million at the end of FY2014 as compare to US$10,796 million in FY2013 an increase of 36.38% over previous year. Limited solvency position indicates utilization of higher financial leverage and its comparatively weaker equity position, noting the lower creditworthiness of the company.
9.3.2 Weakness - Product Recalls
Of late, Home Depot has been involved in some product recalls, which raise doubts about the quality control processes of the company. In May 2014, the company recalled Quantum ELM and ELM2 two-light emergency fixture due to the circuit board and cause the fixture to melt, catch fire and ignite nearby items, posing fire and burn hazards. In same month company also recalled Under-cabinet power strips because of manufacturing defect of the product and recalled Nest Protect: Smoke + CO Alarm because of activity near the product during a fire can prevent the alarm from immediately sounding. Such recalls tarnish the company’s brand image and the consumers could lose their confidence in the company’s products.
9.4 The Home Depot, Inc. - Opportunities
9.4.1 Opportunity - Growing E-Retail Industry
With the rising trend of e-commerce, there is huge potential for the company to increase its profitability through the direct-to- customer sales. The company can increase the contribution of e-retail to its revenue by increasing its online presence. With the rising trend of e-commerce business, there is huge potential for the company to increase its profitability through the direct-to-customer segment. According to the Census Bureau of the Department of Commerce, during the first quarter of 2014 (adjusted for seasonal variation), estimated e-commerce sales in the US, was US$71.20 billion, an increase of 2.80% as compared to the fourth quarter of 2013. For the same period, the total retail sales were estimated at US$1,147.40 billion, an increase of 0.20% as compared to fourth quarter of 2013. E-commerce sales in the first quarter of 2014 accounted for 6.20% of total sales. During the first quarter of 2014, the estimated e-commerce and total retail sales increased 15.00% and 2.40% from the first quarter of 2013. These factors have made the company focus more on online retailing. The company currently offers its products online through the website, homedepot.com. A sound presence in the internet format will help Home Depot to enhance its sales through brand awareness and user friendly features in its websites. It can utilize the opportunity to strengthen its online presence, thereby increasing its customer base and revenue.
9.4.2 Opportunity - Strategic Acquisitions
Home Depot focuses on acquisitions that complement and strengthen its operations and enable it into enter new markets at ease. The strategic acquisitions in line with the current business operations could help the company to enhance its market presence and improve top line performance. In January 2014, the company acquired Blinds.com, an number one online window coverings retailer in the world. As a result of this acquisition the company will able to improve its online presence in the market. Through this acquisition, the company intends to develop a seamless process for its flooring customers. Such strategic acquisitions would help the company to aggressively expand its geographic presence and business operations, which in turn, will drive its top-line performance.
9.4.3 Opportunity - Increase in Consumer Spending in the US
The company may be benefitted from the increase in consumer spending in the US. According to a recent report by The U.S. Bureau of Economic Analysis (BEA), in March 2014, the personal income (PI) in the US increased by 0.50% or US$78.40 billion, and disposable personal income (DPI) increased by 0.50% or US$68.00 billion. Additionally, personal consumption expenditures (PCE) increased by 0.20% or US$107.20 billion for the same period. For the entire 2013 period, personal income (PI) in the US increased by 2.80% and disposable personal income (DPI) increased by 1.90% as compared to 2012. In addition, personal consumption expenditure (PCE) increased by 3.10% during the same period. The company offers diverse portfolio of products under various brands, which enjoy wide reach through its massive presence in the US. Growing personal income, disposable personal income and personal consumption expenditures indicate improved consumer spending in the US, which may positively affect the purchases of products and performance of companies such as Home Depot.
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9.5 The Home Depot, Inc. - Threats
9.5.1 Threat - Rise in Labor Wages in the US
Increasing manpower costs may have a negative effect on the company. The tight labor markets, government mandated increases in minimum wages and a higher proportion of full-time employees are resulting in an increase in labor costs. The federal minimum wage provisions are contained in the Fair Labor Standards Act (FLSA). The minimum wage rate in the US, which remained at US$5 per hour since 1997 reached US$9.32 per hour in January 2014. For instance, the minimum wage rates have crossed or are nearer to US$9 per hour in several states such as Washington D. C., California, Oregon, Massachusetts, Colorado, and Connecticut among others. Furthermore, according to a Congressional Budget Office report published in February 2014, the US President, proposed to increase the minimum wage by 0.30% to US$10.10 per hour. A significant proportion of workers in the retail sector fall under the purview of minimum wages, any further rise in the wage rates may increase the operating costs of the company which will affect the profits.
9.5.2 Threat - Increase in Counterfeit Products
The company’s business may be affected as a result of the huge influx of counterfeit products globally. High penetration of counterfeit merchandise may lower the company’s sales and affect its profit margins. Moreover, as customers mistakenly purchase counterfeit products bearing fake labels, the low quality of the products affects consumer confidence and also damages the brand image of the genuine company. According to International Chamber of Commerce (ICC), the global economic and social impacts of counterfeiting and piracy is expected to reach US$2 trillion by 2015 and places three million legitimate jobs at risk every year. International trade in fakes is expected to increase to US$960 billion by 2015. Through low price offerings, the imitated goods are affecting the sales of the branded and genuine products. As the company deals with several branded and private label products, it is exposed to such challenges.
9.5.3 Threat - Expansion by Competitor
Competition is high among retail industry irrespective of their sales, customer service and reach in the market. Competition within the industry is generally on the basis of the sale, supply chain management, and customer service. The company’s key competitors include Amazon.com, Inc., Best Buy Co, Inc., Big Lots, Inc., Costco Wholesale Corporation, Sears Holdings Corporation, Wal-Mart Stores, Inc. and Wolseley plc. While major competitors have undertaken expansion programs to match the growth rate, the market also witnessed consolidation involving mergers and acquisitions and expansion strategies. For instance, in April 2014, Amazon.com, Inc. (Amazon), acquired the ComiXology’s. As a result the Amazon will able to accelerate its comics books and graphic novel business. Furthermore in February 2014, the company’s another competitor Wolseley plc, acquired the Puukeskus in Finland. As a result of this acquisition the company will able to expand its business in Finland. Such consolidations within the sector may result in large companies intensifying competition that may cause the company to lose out on certain customers.
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10 The Home Depot, Inc. - Company Financial Analysis
10.1 The Home Depot, Inc. - Five Year Snapshot: Overview of Financial and Operational Performance Indicators
The company reported revenue of US$78,812 million during the fiscal year 2014 (2014). The company's revenue grew at a CAGR of 4.47% during 2010–2014, with an annual growth of 5.43% over 2013. During 2014, operating margin of the company was 11.63% in comparison with operating margin of 10.39% in 2013. In 2014, the company recorded a net profit margin of 6.83% compared to a net profit margin of 6.07% in 2013.
Table 6: The Home Depot, Inc. - Annual ratios
Key Ratios Unit/Currency 2014 2013 2012 2011 2010
Equity Ratios
EPS (Earnings per Share) US$ 3.76 3 2.47 2.01 1.55
Dividend per Share US$ 1.56 1.26 1.04 0.95 0.9
Dividend Cover Absolute 2.41 2.38 2.38 2.13 1.72
Book Value per Share US$ 9.07 11.98 11.64 11.64 11.42
Cash Value per Share US$ 1.4 1.68 1.29 0.34 0.84
Profitability Ratios
Gross Margin % 34.75 34.57 34.47 34.27 33.87
Operating Margin % 11.63 10.39 9.46 8.59 7.26
Net Profit Margin % 6.83 6.07 5.52 4.91 4.02
Profit Markup % 53.27 52.83 52.59 52.14 51.21
PBT Margin (Profit Before Tax) % 10.74 9.66 8.62 7.75 6.02
Return on Equity % 43 25.51 21.7 17.67 13.72
Return on Capital Employed % 30.79 26.22 21.39 19.46 15.74
Return on Assets % 13.29 11.04 9.58 8.32 6.51
Return on Fixed Assets % 36.32 30.2 25.62 21.91 17.8
Return on Working Capital % 202.34 198.62 129.49 173.94 135.79
Growth Ratios
Sales Growth % 5.43 6.19 3.53 2.75 -7.17
Operating Income Growth % 18.03 16.59 14.08 21.57 10.19
EBITDA Growth % 14.85 15.02 10.92 21.09 5.84
Net Income Growth % 18.74 16.79 16.33 25.44 17.74
EPS Growth % 25.12 21.35 23.51 27.95 -6.86
Working Capital Growth % 15.86 -23.99 53.23 -5.09 60.12
Cost Ratios
Operating Costs (% of Sales) % 88.37 89.61 90.54 91.41 92.74
Administration Costs (% of Sales) % 21.06 22.08 22.77 23.31 24.03
Liquidity Ratios
Current Ratio Absolute 1.42 1.34 1.55 1.33 1.34
Quick Ratio Absolute 0.39 0.41 0.45 0.28 0.36
Cash Ratio Absolute 0.18 0.22 0.21 0.05 0.14
Leverage Ratios
Debt to Equity Ratio Absolute 1.18 0.61 0.6 0.52 0.5
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Table 6: The Home Depot, Inc. - Annual ratios
Key Ratios Unit/Currency 2014 2013 2012 2011 2010
Net Debt to Equity Absolute 1.02 0.47 0.49 0.49 0.43
Debt to Capital Ratio Absolute 0.49 0.36 0.35 0.32 0.32
Efficiency Ratios
Asset Turnover Absolute 1.95 1.82 1.74 1.69 1.62
Fixed Asset Turnover Absolute 3.38 3.11 2.88 2.71 2.59
Inventory Turnover Absolute 4.65 4.57 4.47 4.21 4.3
Current Asset Turnover Absolute 5.16 4.86 4.85 5.04 4.76
Capital Employed Turnover Absolute 6.29 4.21 3.93 3.6 3.41
Working Capital Turnover Absolute 17.4 19.12 13.68 20.26 18.71
Revenue per Employee US$ 215923
Net Income per Employee US$ 14753
Capex to Sales % 1.76 1.76 1.73 1.61 1.46
Source: Canadean
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11 The Home Depot, Inc. - Interim ratios
Table 7: The Home Depot, Inc. - Interim ratios
Key Ratios Unit/Currency Aug-2014 May-2014 Feb-2014 Nov-2013
Equity Ratios
Interim EPS (Earnings per Share) US$ 1.52 1 0.73 0.95
Book Value per Share US$ 8.38 8.88 9.07 10.1
Profitability Ratios
Gross Margin % 34.27 34.97 34.99 34.92
Operating Margin % 14.48 11.57 9.95 11.78
Net Profit Margin % 8.61 7 5.72 6.94
Profit Markup % 52.15 53.78 53.82 53.65
PBT Margin (Profit Before Tax) % 13.68 11.1 8.95 10.81
Cost Ratios
Operating Costs (% of Sales) % 85.52 88.43 90.05 88.22
Administration Costs (% of Sales) % 18.05 21.3 22.74 21.04
Liquidity Ratios
Current Ratio Absolute 1.44 1.32 1.42 1.48
Quick Ratio Absolute 0.53 0.39 0.39 0.58
Leverage Ratios
Debt to Equity Ratio Absolute 1.46 1.21 1.18 1.13
Net Debt to Equity Absolute 1.09 1.01 1.02 0.78
Debt to Capital Ratio Absolute 0.55 0.5 0.49 0.51
Source: Canadean
11.1.1 The Home Depot, Inc. - Financial ratios: Capital Market Ratios
Table 8: The Home Depot, Inc. - Capital Market Ratios
Key Ratios Value
P/E (Price/Earnings) Ratio 24.9
EV/EBITDA (Enterprise Value/Earnings Before Interest, Taxes, Depreciation and Amortization) 13.71
Enterprise Value/Sales 1.76
Enterprise Value/Operating Profit 15.1
Enterprise Value/Total Assets 3.41
Dividend Yield 0.02
Note: Above ratios are based on share price as of 29-Aug-2014. The above ratios are absolute numbers.
Source: Canadean
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11.2 The Home Depot, Inc. - Financial Performance and Ratio Charts
11.2.1 The Home Depot, Inc. - Revenue and Operating margin
The consolidated group revenue of the company for 2014 stood at US$78,812 million, which corresponds to a growth rate of 5.43% over the previous year. The operating margin of the company was 11.63% in 2014, an increase of 124.00 basis points over the previous year.
Figure 1: The Home Depot, Inc. - Revenue and Operating Profit
Source: Canadean
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11.2.2 The Home Depot, Inc. - Net Debt vs. Gearing Ratio
The company recorded higher net debt of US$12,795 million at the end of fiscal year 2014 when compared to the previous year's net debt of US$8,302 million. The company's gearing ratio for the year 2014 was 1.17, which was higher when compared to the previous year's gearing ratio of 0.53. The gearing ratio remained higher in 2014 due to higher debt funding activities over equity.
Figure 2: The Home Depot, Inc. - Net Debt vs. Gearing Ratio
Source: Canadean
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11.2.3 The Home Depot, Inc. - Operational Efficiency
The company's working capital turnover for 2014 declined to 17.40, from the previous year's working capital turnover of 19.12. In 2014, the company's asset turnover improved to 1.95 from the previous year's current ratio of 1.82.
Figure 3: The Home Depot, Inc. - Operational Efficiency
Source: Canadean
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11.2.4 The Home Depot, Inc. - Solvency
In 2014, the company's current ratio increased to 1.42 from the previous year's current ratio of 1.34. The company’s quick ratio declined to 0.39 in 2014 from the previous year's quick ratio of 0.41. In 2014, the company’s debt ratio increased to 0.36 from the previous year's debt ratio of 0.26.
Figure 4: The Home Depot, Inc. - Solvency
Source: Canadean
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11.2.5 The Home Depot, Inc. - Valuation
As of 29-Aug-2014, the company recorded an EV/EBIT of 15.10, EV/Total Assets of 3.41 and EV/Sales of 1.76.
Figure 5: The Home Depot, Inc. - Valuation
Source: Canadean
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11.3 The Home Depot, Inc. - Competitive Benchmarking
The following companies are the major competitors of The Home Depot, Inc.: Amazon.com, Inc. (Ticker: AMZN)
Best Buy Co, Inc. (Ticker: BBY)
Big Lots, Inc. (Ticker: BIG)
Costco Wholesale Corporation (Ticker: COST)
Sears Holdings Corporation (Ticker: SHLD)
Wal-Mart Stores, Inc. (Ticker: WMT)
Wolseley plc (Ticker: WOS)
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For competitive benchmarking, latest financial results are considered. Following are the key performance indicators against which the companies have been benchmarked:
11.3.1 The Home Depot, Inc. - Market Capitalization
As of 29-Aug-2014, the company recorded a market capitalization of US$125,844 million, higher than its close competitors Best Buy Co, Inc. (Ticker: BBY) and Sears Holdings Corporation (Ticker: SHLD) which recorded market capitalizations of US$11,122 million and US$3,705 million respectively. The company recorded earnings per share of US$3.76 in 2014, which has led to a price/earnings ratio (P/E ratio) of 24.90. This was higher than the P/E ratios of its peers Wal-Mart Stores, Inc. (Ticker: WMT) and Best Buy Co, Inc. (Ticker: BBY), which recorded P/E ratio of 15.61 and 16.14 respectively.
Figure 6: The Home Depot, Inc. - Market Capitalization
Source: CanadeanNote: Company names are represented by ticker symbols Bubble size represents Market Capitalization US$ Million For those data points with negative values, bubbles will not be displayed. Where the market cap is disproportionately smaller, a bubble may not be displayed.
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11.3.2 The Home Depot, Inc. - Efficiency
The company recorded an operating margin of 11.63% in 2014. This was higher than the operating margins of its peers, Wal-Mart Stores, Inc. (Ticker: WMT), Best Buy Co, Inc. (Ticker: BBY) and Sears Holdings Corporation (Ticker: SHLD), which recorded the margins of 5.64%, 2.69% and -2.56% respectively. In terms of revenues, the company is 0.17 times of Wal-Mart Stores, Inc. (Ticker: WMT), 1.86 times of Best Buy Co, Inc. (Ticker: BBY), and 2.18 times of Sears Holdings Corporation (Ticker: SHLD).
Figure 7: The Home Depot, Inc. - Efficiency
Source: CanadeanNote: Company names are represented by ticker symbols
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11.3.3 The Home Depot, Inc. - Turnover: Inventory and Asset
In 2014, the company reported an inventory turnover of 4.65, lower than that of its peers: during the same period, Wal-Mart Stores, Inc. (Ticker: WMT) and Best Buy Co, Inc. (Ticker: BBY) recorded inventory turnovers of 7.98 and 6.09 respectively The company’s asset turnover in 2014 was 1.95, lower than that of its peers: during the same period, Wal-Mart Stores, Inc. (Ticker: WMT), Best Buy Co, Inc. (Ticker: BBY) and Sears Holdings Corporation (Ticker: SHLD) recorded asset turnovers of 2.33, 3.03 and 1.98 respectively.
Figure 8: The Home Depot, Inc. - Turnover: Inventory and Asset
Source: CanadeanNote: Company names are represented by ticker symbols
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11.3.4 The Home Depot, Inc. - Liquidity
The company reported a current ratio of 1.42 in 2014, higher than the current ratios of its peers: during the same period, Wal-Mart Stores, Inc. (Ticker: WMT), Best Buy Co, Inc. (Ticker: BBY) and Sears Holdings Corporation (Ticker: SHLD) recorded current ratios of 0.88, 1.41 and 1.09 respectively. In 2014, the company's debt to equity ratio was 1.18, higher than that of its peers: during the same period, Wal-Mart Stores, Inc. (Ticker: WMT) and Best Buy Co, Inc. (Ticker: BBY) recorded debt to equity ratios of 0.74 and 0.42 respectively.
Figure 9: The Home Depot, Inc. - Liquidity
Source: CanadeanNote: Company names are represented by ticker symbols
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12 The Home Depot, Inc. - Mergers & Acquisitions and Partnerships
12.1 The Home Depot, Inc. - M&A and Partnerships Strategy
Jig-A-World partners with The Home Depot
Deal Type Partnership Deal Sub Type Other
Deal Status Completed Announced Date 7/8/2010 12:00:00 AM
Deal in Brief
Jig-A-Loo World Inc., a Canada based retailer of dry silicone-based lubricants, through its wholly-owned subsidiary Jig-A-World USA, Inc., formed a partnership with The Home Depot, Inc., a home improvement retailer, to provide EconoGreen Plastics(TM) at Home Depot stores. The EconoGreen Plastics(TM), products includes trash bags and drop cloths, designed to help consumers reduce environmental waste. These heavy duty bags are made from 100% recycled materials and are 100 percent oxo- degradable, allowing them to break down within two years after use while costing considerably less than traditional green plastic bags. "With EconoGreen Plastics(TM) now available at The Home Depot stores nationwide, environmentally conscious consumers across the U.S. have easier access to our complete line of plastic bags," said Cindy Sutton, vice president, Jig-A-World USA, Inc. "Now consumers have an affordable option for green bags that they can use throughout their home without paying a premium or sacrificing quality."
Participant Company Information
Company Name Jig-A-Loo World Inc. Involvement Type Target
Company Overview
Jig-A-Loo World Inc. is a privately held Canadian-based producer of JIG-A-LOO. JIG-A-LOO is an all-purpose, high performance silicone based lubricant that unlike any other lubricant contains no oil, grease, wax or detergent; is colorless and does not stain or drip.
The Home Depot partners with Owens Corning
Deal Type Partnership Deal Sub Type Co-Marketing
Deal Status Completed Announced Date 10/5/2009 12:00:00 AM
Deal in Brief
The Home Depot, Inc., a home improvement retailer, expanded its partnership with Owens Corning, a producer of residential and commercial building materials and glass fiber reinforcements, to sell owens corning’s PINK fiberglass insulation in The Home Depot's stores. Under the partnership agreement, PINK fiberglass insulation will be sold in more than 2,200 of The Home Depot's stores across North America. The partnership will enable the Owens Corning to expand its business operations in North America.
Participant Company Information
Company Name Owens Corning Involvement Type Target
Company Overview
Owens Corning is a manufacturer of composite and building materials systems based in the US. The company manufactures fabricates and glass fiber reinforcements, and sells them in the form of mat, veil and fabrics. It also offers residential an d commercial building materials such as insulation materials including thermal and acoustical batts, loose fill insulation, foam sheathing and accessories. In addition, it offers roofing materials such as oxidized asphalt and roofing accessories. The com pany offers its products under various brand names such as Owens Corning, Pink Fiberglas, Cultured Stone, ProStone, Modulo Stone, ParMur and Langeo Stone. The company principally operates in the US, Europe, Asia-Pacific and Canada. Owens Corning is headquartered in Toledo, Ohio, US.
The Home Depot partners with Martha Stewart
Deal Type Partnership Deal Sub Type Other
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Deal Status Completed Announced Date 9/14/2009 12:00:00 AM
Deal in Brief
The Home Depot, Inc., a home improvement retailer, entered into a partnership agreement with Martha Stewart Living Omnimedia, Inc., a diversified media and merchandising company. Under the agreement, partners will develop an exclusive Martha Stewart Living brand of home improvement products in select categories including Outdoor Living, Home Organization and Home decor. The new brand will be available at The Home Depot will provide its customer a distinctive, innovative merchandise at an affordable prices. The partnership will allow Martha Stewart to offer a wider audience the product and information. The partnership will enable Martha to expand its reach and business.
Participant Company Information
Company Name Martha Stewart Living Omnimedia, Inc.
Involvement Type Target
Company Overview
Martha Stewart Living Omnimedia, Inc. (MLSO) is an integrated media and merchandising company. The company classifies its business operations under three reportable segments, namely, Publishing, Broadcasting and Merchandising. The media and merchandise which company produces encompasses a wide range of areas such as, cooking and entertaining, crafts, weddings, holiday and celebrations, gardening and pets among others. The company sells its products through retail outlets such as The Home Depot, Macy's, Petsmart and Staples. MLSO is headquartered at New York, the US.
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13 The Home Depot, Inc. - Recent Developments
The Home Depot names Craig Menear CEO, effective November 1, 2014
The Home Depot, the world's largest home improvement retailer, today announced that Craig Menear, currently president, U.S. retail, has been named CEO and president, effective November 1, 2014, and has been elected to the company's board of directors, effectively im mediately. Current chairman and CEO Frank Blake will remain chairman. Published Date : 8/22/2014 11:29:00 AM The Home Depot names Craig Menear as CEO
The Home Depot, the world's largest home improvement retailer, today announced that Craig Menear, currently president, U.S. retail, has been named CEO and president, effective November 1, 2014, and has been elected to the company's board of directors, effectively immediately. Published Date : 8/22/2014 6:37:00 AM The Home Depot declares second quarter dividend of 47 cents
The Home Depot, the world's largest home improvement retailer, announced that its board of directors declared a second quarter cash dividend of 47 cents per share. Published Date : 8/21/2014 12:00:00 AM The Home Depot announces second quarter results
The Home Depot, the world's largest home improvement retailer, today reported sales of $23.8 billion for the second quarter of fiscal 2014, a 5.7 percent increase from the second quarter of fiscal 2013. Published Date : 8/20/2014 9:14:00 AM The Home Depot names Ted Decker EVP merchandising
The Home Depot, the world's largest home improvement retailer, today announced the promotion of Ted Decker to Executive Vice President - Merchandising, effective August 4, 2014. Published Date : 7/31/2014 9:34:00 AM PrimePay selected as exclusive payroll provider for Home Depot Pro Xtra loyalty program
PrimePay, the nation's largest independent payroll processor, has been selected by Home Depot as the exclusive payroll and tax se rvices provider for the Home Depot Pro Xtra Loyalty Program. Published Date : 6/6/2014 7:09:00 AM The Home Depot announces first quarter results; updates fiscal year 2014 guidance
The Home Depot, the world's largest home improvement retailer, reported first quarter of fiscal 2014 net earnings of $1.4 bil lion, or $1.00 per diluted share, compared with net earnings of $1.2 billion, or $0.83 per diluted share, in the same period of fiscal 2013. Published Date : 5/21/2014 11:26:00 AM Manhattan Associates presents inaugural shipper of the year award to The Home Depot
Supply Chain Commerce Solutions provider Manhattan Associates, Inc. announced that The Home Depot is the recipient of its inaugural “Shipper of the Year” award. Published Date : 5/8/2014 4:26:00 AM Cree LED Bulb with Industry’s Best Color Quality Now Available Nationwide
Cree, Inc. is expanding the bulb's availability across The Home Depot stores nationwide. Delivering an unprecedented Color Rendering Index (CRI) of 93, the TW Series Cree LED Bulb displays colors true and natural, ideal for use in kitchens, bathrooms and closets, where color quality matters most. The 40-watt replacement TW Series Cree LED Bulb retails for $13.97 and the Cree 60-watt replacement bulb retails for $15.97. Published Date : 5/6/2014 12:00:00 AM
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ENERGY STAR Certified Philips SlimStyle LED Bulb $1.97 after Energy Efficiency Program Rebates
The innovative new SlimStyle bulb from Philips, the global leader in lighting, has just achieved ENERGY STAR certification, e nabling it to qualify for instant Energy Efficiency program rebates. Philips has worked with The Home Depot to lower pre-rebate pricing on the SlimStyle bulb to $8.97, making it one of the most affordable 60-watt LED equivalent bulbs on the market. Published Date : 4/24/2014 12:00:00 AM Cowboy Charcoal introduces lump charcoal and wood chip products to Canada consumers
Cowboy Charcoal, maker of top selling natural hardwood lump charcoal, chips and chunks, announced the availability of its premium products at Target and The Home Depot Stores across Canada. Published Date : 4/21/2014 11:12:00 AM Cowboy Charcoal introduces all natural lump charcoal and wood chip products to Canada consumers
Cowboy Charcoal, maker of top selling natural hardwood lump charcoal, chips and chunks, announced today the availability of i ts premium products at Target and The Home Depot Stores across Canada. Published Date : 4/17/2014 12:47:00 PM Home Depot slows physical stores expansion, shifts focus on e-Commerce
The Home Depot, an American retailer of home improvement, has firmed up plans to shift its focus on e-Commerce, in a move to gain market share. Published Date : 4/17/2014 12:33:00 PM Pratt Industries joins The Home Depot to help HeroBox
Pratt Industries has joined forces with The Home Depot to give our men and women in uniform a little reminder of home – by enlisting in a program that collects and sends supplies to deployed soldiers in hotspots like Afghanistan and beyond. Published Date : 4/10/2014 12:00:00 AM The Home Depot launches the next generation of outdoor power
The Home Depot, the world's largest home improvement retailer, is launching into spring, its biggest selling season of the year. Published Date : 4/4/2014 7:54:00 AM Cree Makes the Biggest Thing Since the Light Bulb™ Brighter and More Affordable
In just one year, the Cree LED Bulb has become the best-selling LED bulb in America, enabling more than $1 billion in lifetime energy savings for consumers. Cree, Inc. and The Home Depot are continuing the successful formula of delivering innovative products at a price that gives consumers more reasons to replace their energy wasting incandescent bulbs by lowering the prices of the Cree LED Bulb product line by as much as 23 percent. Published Date : 3/12/2014 12:00:00 AM Revolutionary Philips SlimStyle Bulb is Most Affordable Quality LED at $9.97
Philips, the global leader in lighting, has once again revolutionized the 60-watt LED equivalent bulb by introducing SlimStyle, a brand new shape that offers the high quality, omni-directional light of an incandescent, while eliminating the bulky heat sink commonly found on current LED offerings. The new value-priced 60-watt bulb is now available for purchase in store at The Home Depot, a partner in innovation, for just $9.97. Published Date : 3/10/2014 12:00:00 AM The Home Depot names Craig Menear President, US retail, Mark Holifield EVP, supply chain and product development
The Home Depot, the world's largest home improvement retailer, announced that Craig Menear has been named president, U.S. retail, effective immediately. Published Date : 2/28/2014 12:00:00 AM
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The Home Depot announces fourth quarter & fiscal 2013 results
The Home Depot the world's largest home improvement retailer, today reported that comparable store sales for the fourth quarter of fiscal 2013 increased 4.4 percent, and comp sales for U.S. stores were positive 4.9 percent. Published Date : 2/27/2014 3:11:00 AM The Home Depot announces fourth quarter & fiscal 2013 results
The Home Depot, the world's largest home improvement retailer, today reported that comparable store sales for the fourth quarter of fiscal 2013 increased 4.4 percent, and comp sales for U.S. stores were positive 4.9 percent. Published Date : 2/25/2014 12:00:00 AM
Source: Canadean
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14 Appendix
14.1 Methodology
Canadean company reports are based on a core set of research techniques which ensure the best possible level of quality
and accuracy of data. The key sources used include:
Company Websites
Company Annual Reports
SEC Filings
Press Releases
Proprietary Databases
Notes
Financial information of the company is taken from the most recently published annual reports or SEC filings
The financial and operational data reported for the company is as per the industry defined standards
Revenue converted to US$ at average annual conversion rate as of fiscal year end
14.2 The Home Depot, Inc. - Ratio Definitions
Capital Market Ratios
Capital Market Ratios measure investor response to owning a company's stock and also the cost of issuing stock.
Price/Earnings Ratio (P/E)
Price/Earnings (P/E) ratio is a measure of the price paid for a share relative to the annual income earned per share. It is a financial ratio used for valuation: a higher P/E ratio means that investors are paying more for each unit of income, so the stock is more expensive compared to one with lower P/E ratio. A high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E. Price per share is as of previous business close, and EPS is from latest annual report.
Formula: Price per Share / Earnings per Share
Enterprise Value/Earnings before Interest, Tax, Depreciation & Amortization (EV/EBITDA)
Enterprise Value/EBITDA (EV/EBITDA) is a valuation multiple that is often used in parallel with, or as an alternative to, the P/E ratio. The main advantage of EV/EBITDA over the PE ratio is that it is unaffected by a company's capital structure. It compares the value of a business, free of debt, to earnings before interest. Price per share is as of previous business close, and shares outstanding last reported. Other items are from latest annual report.
Formula: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / (Net Income + Interest + Tax + Depreciation + Amortization)
Enterprise Value/Sales
Enterprise Value/Sales (EV/Sales) is a ratio that provides an idea of how much it costs to buy the company's sales. EV/Sales is seen as more accurate than Price/Sales because market capitalization does not take into account the amount of debt a company has, which needs to be paid back at some point. Price per share is as of previous business close, and shares outstanding last reported. Other items are from latest annual report.
Formula: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Sales
Enterprise Value/Operating Profit
Enterprise Value/Operating Profit measures the company's enterprise value to the operating profit. Price per share is as of previous business close, and shares outstanding last reported. Other items are from latest annual report.
Formula: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Operating Income
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Enterprise Value/Total Assets
Enterprise Value/Total Assets measures the company's enterprise value to the total assets. Price per share is as of previous business close, and shares outstanding last reported. Other items are from latest annual report.
Formula: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Total Assets
Dividend Yield
Dividend Yield shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a stock.
Formula: Annual Dividend per Share / Price per Share
Equity Ratios
These ratios are based on per share value.
Earnings per Share (EPS)
Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock. EPS serves as an indicator of a company's profitability.
Formula: Net Income / Weighted Average Shares
Dividend per Share
Dividend is the distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.
Dividend Cover
Dividend cover is the ratio of company's earnings (net income) over the dividend paid to shareholders.
Formula: Earnings per share / Dividend per share
Book Value per Share
Book Value per Share measure used by owners of common shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly.
Formula: (Shareholders Equity - Preferred Equity) / Outstanding Shares
Cash Value per Share
Cash Value per Share is a measure of a company's cash (cash & equivalents on the balance sheet) that is determined by dividing cash & equivalents by the total shares outstanding.
Formula: Cash & equivalents / Outstanding Shares
Profitability Ratios
Profitability Ratios are used to assess a company's ability to generate earnings, based on revenues generated or resources used. For most of these ratios, having a higher value relative to a competitor's ratio or the same ratio from a previous period is indicative that the company is doing well.
Gross Margin
Gross margin is the amount of contribution to the business enterprise, after paying for direct- fixed and direct variable unit costs.
Formula: {(Revenue-Cost of revenue) / Revenue}*100
Operating Margin
Operating Margin is a ratio used to measure a company's pricing strategy and operating efficiency.
Formula: (Operating Income / Revenues) *100
Net Profit Margin
Net Profit Margin is the ratio of net profits to revenues for a company or business segment - that shows how much of each dollar earned by the company is translated into profits.
Formula: (Net Profit / Revenues) *100
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Profit Markup
Profit Markup measures the company's gross profitability, as compared to the cost of revenue.
Formula: Gross Income / Cost of Revenue
PBIT Margin (Profit Before Interest & Tax)
Profit Before Interest & Tax Margin shows the profitability of the company before interest expense & taxation.
Formula: {(Net Profit + Interest + Tax) / Revenue} *100
PBT Margin (Profit Before Tax)
Profit Before Tax Margin measures the pre-tax income over revenues.
Formula: {Income Before Tax / Revenues} *100
Return on Equity
Return on Equity measures the rate of return on the ownership interest (shareholders' equity) of the common stock owners.
Formula: (Net Income / Shareholders Equity)*100
Return on Capital Employed
Return on Capital Employed is a ratio that indicates the efficiency and profitability of a company's capital investments. ROCE should always be higher than the rate at which the company borrows; otherwise any increase in borrowing will reduce shareholders' earnings.
Formula: EBIT / (Total Assets – Current Liabilities)*100
Return on Assets
Return on Assets is an indicator of how profitable a company is relative to its total assets, the ratio measures how efficient management is at using its assets to generate earnings.
Formula: (Net Income / Total Assets)*100
Return on Fixed Assets
Return on Fixed Assets measures the company's profitability to its fixed assets (property, plant & equipment).
Formula: (Net Income / Fixed Assets) *100
Return on Working Capital
Return on Working Capital measures the company's profitability to its working capital.
Formula: (Net Income / Working Capital) *100
Cost Ratios
Cost ratios help to understand the costs the company is incurring as a percentage of sales.
Operating costs (% of Sales)
Operating costs as percentage of total revenues measures the operating costs that a company incurs compared to the revenues.
Formula: (Operating Expenses / Revenues) *100
Administration costs (% of Sales)
Administration costs as percentage of total revenue measures the selling, general and administrative expenses that a company incurs compared to the revenues.
Formula: (Administrative Expenses / Revenues) *100
Interest costs (% of Sales)
Interest costs as percentage of total revenues measures the interest expense that a company incurs compared to the revenues.
Formula: (Interest Expenses / Revenues) *100
Leverage Ratios
Leverage ratios are used to calculate the financial leverage of a company to get an idea of the company's methods of financing or to measure its ability to meet financial obligations. There are several different ratios, but the main factors looked at include debt, equity, assets and interest expenses.
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Debt to Equity Ratio
Debt to Equity Ratio is a measure of a company's financial leverage. The debt/equity ratio also depends on the industry in which the company operates. For example, capital-intensive industries tend to have a higher debt equity ratio.
Formula: Total Liabilities / Shareholders Equity
Debt to Capital Ratio
Debt to capital ratio gives an idea of a company's financial structure, or how it is financing its operations, along with some insight into its financial strength. The higher the debt-to-capital ratio, the more debt the company has compared to its equity. This indicates to investors whether a company is more prone to using debt financing or equity financing. A company with high debt-to- capital ratios, compared to a general or industry average, may show weak financial strength because the cost of these debts may weigh on the company and increase its default risk.
Formula: {Total Debt / (Total assets - Current Liabilities)}
Interest Coverage Ratio
Interest Coverage Ratio is used to determine how easily a company can pay interest on outstanding debt, calculated as earnings before interest & tax by interest expense.
Formula: EBIT / Interest Expense
Liquidity Ratios
Liquidity ratios are used to determine a company's ability to pay off its short-terms debts obligations. Generally, the higher the value of the ratio, the larger the margin of safety that the company possesses to cover short-term debts. A company's ability to turn short-term assets into cash to cover debts is of the utmost importance when creditors are seeking payment. Bankruptcy analysts and mortgage originators frequently use the liquidity ratios to determine whether a company will be able to continue as a going concern.
Current Ratio
Current Ratio measures a company's ability to pay its short-term obligations. The ratio gives an idea of the company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point.
Formula: Current Assets / Current Liabilities
Quick Ratio
Quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets.
Formula: (Current Assets - Inventories) / Current Liabilities
Cash Ratio
Cash ratio is the most stringent and conservative of the three short-term liquidity ratio. It only looks at the most liquid short-term assets of the company, which are those that can be most easily used to pay off current obligations. It also ignores inventory and receivables, as there are no assurances that these two accounts can be converted to cash in a timely matter to meet current liabilities.
Formula: {(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}
Efficiency Ratios
Efficiency ratios measure a company's effectiveness in various areas of its operations, essentially looking at maximizing its use of resources.
Fixed Asset Turnover
Fixed Asset Turnover ratio indicates how well the business is using its fixed assets to generate sales. A higher ratio indicates the business has less money tied up in fixed assets for each currency unit of sales revenue. A declining ratio may indicate that the business is over-invested in plant, equipment, or other fixed assets.
Formula: Net Sales / Fixed Assets
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Asset Turnover
Asset turnover ratio measures the efficiency of a company's use of its assets in generating sales revenue to the company. A higher asset turnover ratio shows that the company has been more effective in using its assets to generate revenues.
Formula: Net Sales / Total Assets
Current Asset Turnover
Current Asset Turnover indicates how efficiently the business uses its current assets to generate sales.
Formula: Net Sales / Current Assets
Inventory Turnover
Inventory Turnover ratio shows how many times a company's inventory is sold and replaced over a period. A low turnover implies poor sales and, therefore, excess inventory. A high ratio implies either strong sales or ineffective buying.
Formula: Cost of Goods Sold / Inventory
Working Capital Turnover
Working Capital Turnover is a measurement to compare the depletion of working capital to the generation of sales. This provides some useful information as to how effectively a company is using its working capital to generate sales.
Formula: Net Sales / Working Capital
Capital Employed Turnover
Capital employed turnover ratio measures the efficiency of a company's use of its equity in generating sales revenue to the company.
Formula: Net Sales / Shareholders Equity
Capex to sales
Capex to Sales ratio measures the company's expenditure (investments) on fixed and related assets' effectiveness when compared to the sales generated.
Formula: (Capital Expenditure / Sales) *100
Net income per Employee
Net income per Employee looks at a company's net income in relation to the number of employees they have. Ideally, a company wants a higher profit per employee possible, as it denotes higher productivity.
Formula: Net Income / No. of Employees
Revenue per Employee
Revenue per Employee measures the average revenue generated per employee of a company. This ratio is most useful when compared against other companies in the same industry. Generally, a company seeks the highest revenue per employee.
Formula: Revenue / No. of Employees
Efficiency Ratio
Efficiency Ratio is used to calculate a bank's efficiency. An increase means the company is losing a larger percentage of its income to expenses. If the efficiency ratio is getting lower, it is good for the bank and its shareholders.
Formula: Non-interest expense / Total Interest Income Source : Canadean
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14.3 Disclaimer
All Rights Reserved
No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means,
electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Canadean.
The data and analysis within this report is driven by Canadean from its own primary and secondary research of public and
proprietary sources and does not necessarily represent the views of the company profiled.
The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the
findings, conclusions and recommendations that Canadean delivers will be based on information gathered in good faith from
both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Canadean can
accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
