ODP CORP/THE (ODP) Stock Fundamental Analysis
USA - NASDAQ:ODP - US88337F1057 - Common Stock
20.73 USD
-0.57 (-2.68%)
20.73 USD
0 (0%)
ODP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 123 industry peers in the Specialty Retail industry. ODP scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. ODP is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year ODP was profitable.
In the past year ODP had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: ODP reported negative net income in multiple years.
ODP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ODP's Return On Assets of 0.76% is in line compared to the rest of the industry. ODP outperforms 53.66% of its industry peers.
With a decent Return On Equity value of 3.27%, ODP is doing good in the industry, outperforming 60.16% of the companies in the same industry.
The Return On Invested Capital of ODP (5.98%) is better than 62.60% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ODP is below the industry average of 11.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.76% | ||
| ROE | 3.27% | ||
| ROIC | 5.98% |
ROA(3y)2.5%
ROA(5y)-0.5%
ROE(3y)8.38%
ROE(5y)-1.26%
ROIC(3y)9.37%
ROIC(5y)8.63%
1.3 Margins
ODP has a Profit Margin (0.39%) which is comparable to the rest of the industry.
ODP has a Operating Margin (2.27%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ODP has declined.
ODP has a Gross Margin of 20.39%. This is amonst the worse of the industry: ODP underperforms 81.30% of its industry peers.
ODP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.27% | ||
| PM (TTM) | 0.39% | ||
| GM | 20.39% |
OM growth 3Y-11.77%
OM growth 5Y-6.21%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.07%
GM growth 5Y-2.23%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ODP is destroying value.
Compared to 1 year ago, ODP has less shares outstanding
The number of shares outstanding for ODP has been reduced compared to 5 years ago.
The debt/assets ratio for ODP is higher compared to a year ago.
2.2 Solvency
ODP has an Altman-Z score of 2.09. This is not the best score and indicates that ODP is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of ODP (2.09) is comparable to the rest of the industry.
The Debt to FCF ratio of ODP is 2.58, which is a good value as it means it would take ODP, 2.58 years of fcf income to pay off all of its debts.
ODP has a Debt to FCF ratio of 2.58. This is in the better half of the industry: ODP outperforms 73.98% of its industry peers.
ODP has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
ODP's Debt to Equity ratio of 0.30 is in line compared to the rest of the industry. ODP outperforms 56.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 2.09 |
ROIC/WACC0.62
WACC9.65%
2.3 Liquidity
A Current Ratio of 0.94 indicates that ODP may have some problems paying its short term obligations.
The Current ratio of ODP (0.94) is worse than 75.61% of its industry peers.
A Quick Ratio of 0.45 indicates that ODP may have some problems paying its short term obligations.
The Quick ratio of ODP (0.45) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
ODP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.33%.
Measured over the past years, ODP shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -40.80% on average per year.
The Revenue has decreased by -9.63% in the past year.
ODP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -8.07% yearly.
EPS 1Y (TTM)-33.33%
EPS 3Y-10.74%
EPS 5Y-40.8%
EPS Q2Q%-8.93%
Revenue 1Y (TTM)-9.63%
Revenue growth 3Y-6.18%
Revenue growth 5Y-8.07%
Sales Q2Q%-7.63%
3.2 Future
The Earnings Per Share is expected to decrease by -4.75% on average over the next years.
The Revenue is expected to decrease by -4.24% on average over the next years.
EPS Next Y1.45%
EPS Next 2Y-1.14%
EPS Next 3Y-4.75%
EPS Next 5YN/A
Revenue Next Year-6.23%
Revenue Next 2Y-3.61%
Revenue Next 3Y-4.24%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ODP is valuated cheaply with a Price/Earnings ratio of 7.05.
Compared to the rest of the industry, the Price/Earnings ratio of ODP indicates a rather cheap valuation: ODP is cheaper than 95.12% of the companies listed in the same industry.
ODP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
ODP is valuated cheaply with a Price/Forward Earnings ratio of 7.12.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ODP indicates a rather cheap valuation: ODP is cheaper than 93.50% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.73. ODP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.05 | ||
| Fwd PE | 7.12 |
4.2 Price Multiples
95.94% of the companies in the same industry are more expensive than ODP, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ODP is valued cheaper than 95.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.56 | ||
| EV/EBITDA | 2.77 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ODP's earnings are expected to decrease with -4.75% in the coming years. This may justify a cheaper valuation.
PEG (NY)4.86
PEG (5Y)N/A
EPS Next 2Y-1.14%
EPS Next 3Y-4.75%
5. Dividend
5.1 Amount
ODP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.73
-0.57 (-2.68%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners106.37%
Inst Owner Change-4.89%
Ins Owners5.35%
Ins Owner Change2.01%
Market Cap623.56M
Analysts76.67
Price Target32.3 (55.81%)
Short Float %15.65%
Short Ratio9.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)49.81%
Min EPS beat(2)38.98%
Max EPS beat(2)60.64%
EPS beat(4)2
Avg EPS beat(4)6.2%
Min EPS beat(4)-56.16%
Max EPS beat(4)60.64%
EPS beat(8)4
Avg EPS beat(8)-3.7%
EPS beat(12)7
Avg EPS beat(12)1.68%
EPS beat(16)11
Avg EPS beat(16)13.13%
Revenue beat(2)1
Avg Revenue beat(2)-0.24%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)0.89%
Revenue beat(4)1
Avg Revenue beat(4)-0.91%
Min Revenue beat(4)-3.16%
Max Revenue beat(4)0.89%
Revenue beat(8)1
Avg Revenue beat(8)-2.23%
Revenue beat(12)1
Avg Revenue beat(12)-2.3%
Revenue beat(16)3
Avg Revenue beat(16)-1.93%
PT rev (1m)2.15%
PT rev (3m)2.15%
EPS NQ rev (1m)-11.44%
EPS NQ rev (3m)-29.62%
EPS NY rev (1m)1.47%
EPS NY rev (3m)1.47%
Revenue NQ rev (1m)-2.21%
Revenue NQ rev (3m)-4.64%
Revenue NY rev (1m)-1%
Revenue NY rev (3m)-1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.05 | ||
| Fwd PE | 7.12 | ||
| P/S | 0.09 | ||
| P/FCF | 6.56 | ||
| P/OCF | 3.54 | ||
| P/B | 0.78 | ||
| P/tB | 1.84 | ||
| EV/EBITDA | 2.77 |
EPS(TTM)2.94
EY14.18%
EPS(NY)2.91
Fwd EY14.05%
FCF(TTM)3.16
FCFY15.24%
OCF(TTM)5.85
OCFY28.23%
SpS222.34
BVpS26.46
TBVpS11.24
PEG (NY)4.86
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.76% | ||
| ROE | 3.27% | ||
| ROCE | 8.1% | ||
| ROIC | 5.98% | ||
| ROICexc | 6.6% | ||
| ROICexgc | 9.04% | ||
| OM | 2.27% | ||
| PM (TTM) | 0.39% | ||
| GM | 20.39% | ||
| FCFM | 1.42% |
ROA(3y)2.5%
ROA(5y)-0.5%
ROE(3y)8.38%
ROE(5y)-1.26%
ROIC(3y)9.37%
ROIC(5y)8.63%
ROICexc(3y)11.12%
ROICexc(5y)10.45%
ROICexgc(3y)14.98%
ROICexgc(5y)14.36%
ROCE(3y)12.69%
ROCE(5y)11.69%
ROICexcg growth 3Y-13.22%
ROICexcg growth 5Y-5.2%
ROICexc growth 3Y-13.37%
ROICexc growth 5Y-1.62%
OM growth 3Y-11.77%
OM growth 5Y-6.21%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.07%
GM growth 5Y-2.23%
F-Score6
Asset Turnover1.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.58 | ||
| Debt/EBITDA | 0.93 | ||
| Cap/Depr | 77.88% | ||
| Cap/Sales | 1.21% | ||
| Interest Coverage | 6.61 | ||
| Cash Conversion | 68.75% | ||
| Profit Quality | 365.39% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 2.09 |
F-Score6
WACC9.65%
ROIC/WACC0.62
Cap/Depr(3y)89.3%
Cap/Depr(5y)70.78%
Cap/Sales(3y)1.3%
Cap/Sales(5y)1.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-33.33%
EPS 3Y-10.74%
EPS 5Y-40.8%
EPS Q2Q%-8.93%
EPS Next Y1.45%
EPS Next 2Y-1.14%
EPS Next 3Y-4.75%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.63%
Revenue growth 3Y-6.18%
Revenue growth 5Y-8.07%
Sales Q2Q%-7.63%
Revenue Next Year-6.23%
Revenue Next 2Y-3.61%
Revenue Next 3Y-4.24%
Revenue Next 5YN/A
EBIT growth 1Y-36.13%
EBIT growth 3Y-17.22%
EBIT growth 5Y-13.78%
EBIT Next Year49.36%
EBIT Next 3Y6.7%
EBIT Next 5YN/A
FCF growth 1Y-73.83%
FCF growth 3Y-51.06%
FCF growth 5Y-31.74%
OCF growth 1Y-62.55%
OCF growth 3Y-27.84%
OCF growth 5Y-18.7%