ODP CORP/THE (ODP) Stock Fundamental Analysis
USA - NASDAQ:ODP - US88337F1057 - Common Stock
27.87 USD
+0.05 (+0.2%)
27.87 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to ODP. ODP was compared to 122 industry peers in the Specialty Retail industry. The financial health of ODP is average, but there are quite some concerns on its profitability. ODP has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
ODP had positive earnings in the past year.
In the past year ODP had a positive cash flow from operations.
In multiple years ODP reported negative net income over the last 5 years.
ODP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ODP has a Return On Assets (0.76%) which is comparable to the rest of the industry.
ODP has a Return On Equity of 3.27%. This is comparable to the rest of the industry: ODP outperforms 59.02% of its industry peers.
With a decent Return On Invested Capital value of 5.98%, ODP is doing good in the industry, outperforming 63.11% of the companies in the same industry.
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 in line with its industry peers.
In the last couple of years the Operating Margin of ODP has declined.
ODP has a worse Gross Margin (20.39%) than 81.15% 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
ODP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ODP has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ODP has less shares outstanding
ODP has a worse debt/assets ratio than last year.
2.2 Solvency
ODP has an Altman-Z score of 2.13. 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.
ODP has a Altman-Z score (2.13) which 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.
With a decent Debt to FCF ratio value of 2.58, ODP is doing good in the industry, outperforming 73.77% of the companies in the same industry.
A Debt/Equity ratio of 0.30 indicates that ODP is not too dependend on debt financing.
ODP has a Debt to Equity ratio (0.30) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 2.13 |
ROIC/WACC0.61
WACC9.78%
2.3 Liquidity
ODP has a Current Ratio of 0.94. This is a bad value and indicates that ODP is not financially healthy enough and could expect problems in meeting its short term obligations.
ODP's Current ratio of 0.94 is on the low side compared to the rest of the industry. ODP is outperformed by 74.59% of its industry peers.
A Quick Ratio of 0.45 indicates that ODP may have some problems paying its short term obligations.
ODP has a Quick ratio (0.45) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
The earnings per share for ODP have decreased strongly by -33.33% in the last year.
ODP shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -40.80% yearly.
The Revenue has decreased by -9.63% in the past year.
Measured over the past years, ODP shows a decrease in Revenue. The Revenue has been decreasing by -8.07% on average per year.
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.
Based on estimates for the next years, ODP will show a decrease in Revenue. The Revenue will decrease by -4.24% on average per year.
EPS Next Y-1.15%
EPS Next 2Y-1.14%
EPS Next 3Y-4.75%
EPS Next 5YN/A
Revenue Next Year-6.49%
Revenue Next 2Y-3.61%
Revenue Next 3Y-4.24%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 reasonably with a Price/Earnings ratio of 9.48.
ODP's Price/Earnings ratio is rather cheap when compared to the industry. ODP is cheaper than 88.52% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.86, ODP is valued rather cheaply.
ODP is valuated reasonably with a Price/Forward Earnings ratio of 9.57.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ODP indicates a rather cheap valuation: ODP is cheaper than 87.70% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.32. ODP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.48 | ||
| Fwd PE | 9.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ODP indicates a rather cheap valuation: ODP is cheaper than 94.26% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ODP is valued cheaper than 90.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.82 | ||
| EV/EBITDA | 3.53 |
4.3 Compensation for Growth
ODP's earnings are expected to decrease with -4.75% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
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 |
27.87
+0.05 (+0.2%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners103.16%
Inst Owner Change-4.89%
Ins Owners5.33%
Ins Owner Change-0.02%
Market Cap838.33M
Analysts76.67
Price Target32.3 (15.9%)
Short Float %15.39%
Short Ratio5.6
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)0%
PT rev (3m)2.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.44%
EPS NY rev (1m)-2.56%
EPS NY rev (3m)-1.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.21%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.48 | ||
| Fwd PE | 9.57 | ||
| P/S | 0.13 | ||
| P/FCF | 8.82 | ||
| P/OCF | 4.76 | ||
| P/B | 1.05 | ||
| P/tB | 2.48 | ||
| EV/EBITDA | 3.53 |
EPS(TTM)2.94
EY10.55%
EPS(NY)2.91
Fwd EY10.45%
FCF(TTM)3.16
FCFY11.33%
OCF(TTM)5.85
OCFY20.99%
SpS222.34
BVpS26.46
TBVpS11.24
PEG (NY)N/A
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 | 2.13 |
F-Score6
WACC9.78%
ROIC/WACC0.61
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 Y-1.15%
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-6.49%
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 Year45.86%
EBIT Next 3Y7.36%
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%