28 USD
+0.01 (+0.04%)
28 USD
0 (0%)
Taking everything into account, ODP scores 4 out of 10 in our fundamental rating. 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
- In the past year ODP was profitable.
- 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.
- Each year in the past 5 years ODP had a positive operating cash flow.
1.2 Ratios
- ODP's Return On Assets of -0.27% is in line compared to the rest of the industry. ODP outperforms 48.39% of its industry peers.
- Looking at the Return On Equity, with a value of -1.09%, ODP is in line with its industry, outperforming 53.23% of the companies in the same industry.
- The Return On Invested Capital of ODP (6.28%) is better than 60.48% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ODP is below the industry average of 12.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.27% | ||
| ROE | -1.09% | ||
| ROIC | 6.28% |
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's Operating Margin of 2.28% is in line compared to the rest of the industry. ODP outperforms 50.00% of its industry peers.
- In the last couple of years the Operating Margin of ODP has declined.
- ODP has a worse Gross Margin (20.37%) than 80.65% of its industry peers.
- ODP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.28% | ||
| PM (TTM) | N/A | ||
| GM | 20.37% |
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
- Compared to 5 years ago, ODP has less shares outstanding
- The debt/assets ratio for ODP is higher compared to a year ago.
2.2 Solvency
- ODP has an Altman-Z score of 2.16. 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 (2.16) which is comparable to the rest of the industry.
- The Debt to FCF ratio of ODP is 1.23, which is an excellent value as it means it would take ODP, only 1.23 years of fcf income to pay off all of its debts.
- ODP's Debt to FCF ratio of 1.23 is fine compared to the rest of the industry. ODP outperforms 79.84% of its industry peers.
- A Debt/Equity ratio of 0.17 indicates that ODP is not too dependend on debt financing.
- ODP has a Debt to Equity ratio of 0.17. This is in the better half of the industry: ODP outperforms 63.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.23 | ||
| Altman-Z | 2.16 |
ROIC/WACC0.65
WACC9.73%
2.3 Liquidity
- ODP has a Current Ratio of 0.91. 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 has a worse Current ratio (0.91) than 80.65% 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
- ODP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.01%.
- 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 -8.91% 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)4.01%
EPS 3Y-10.74%
EPS 5Y-40.8%
EPS Q2Q%60.56%
Revenue 1Y (TTM)-8.91%
Revenue growth 3Y-6.18%
Revenue growth 5Y-8.07%
Sales Q2Q%-8.71%
3.2 Future
- Based on estimates for the next years, ODP will show a decrease in Earnings Per Share. The EPS will decrease by -6.65% on average per year.
- ODP is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.70% yearly.
EPS Next Y10.04%
EPS Next 2Y-2.06%
EPS Next 3Y-6.65%
EPS Next 5YN/A
Revenue Next Year-7.38%
Revenue Next 2Y-4.2%
Revenue Next 3Y-4.7%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- ODP is valuated reasonably with a Price/Earnings ratio of 8.31.
- Based on the Price/Earnings ratio, ODP is valued cheaper than 91.94% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.60. ODP is valued rather cheaply when compared to this.
- ODP is valuated reasonably with a Price/Forward Earnings ratio of 9.80.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ODP indicates a rather cheap valuation: ODP is cheaper than 85.48% of the companies listed in the same industry.
- ODP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.31 | ||
| Fwd PE | 9.8 |
4.2 Price Multiples
- 93.55% of the companies in the same industry are more expensive than ODP, based on the Enterprise Value to EBITDA ratio.
- ODP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ODP is cheaper than 93.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.03 | ||
| EV/EBITDA | 3.21 |
4.3 Compensation for Growth
- ODP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A cheap valuation may be justified as ODP's earnings are expected to decrease with -6.65% in the coming years.
PEG (NY)0.83
PEG (5Y)N/A
EPS Next 2Y-2.06%
EPS Next 3Y-6.65%
5. Dividend
5.1 Amount
- No dividends for ODP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ODP CORP/THE / ODP FAQ
Can you provide the ChartMill fundamental rating for ODP CORP/THE?
ChartMill assigns a fundamental rating of 4 / 10 to ODP.
What is the valuation status of ODP CORP/THE (ODP) stock?
ChartMill assigns a valuation rating of 8 / 10 to ODP CORP/THE (ODP). This can be considered as Undervalued.
How profitable is ODP CORP/THE (ODP) stock?
ODP CORP/THE (ODP) has a profitability rating of 3 / 10.
What is the financial health of ODP CORP/THE (ODP) stock?
The financial health rating of ODP CORP/THE (ODP) is 5 / 10.
Can you provide the expected EPS growth for ODP stock?
The Earnings per Share (EPS) of ODP CORP/THE (ODP) is expected to grow by 10.04% in the next year.