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ODP CORP/THE (ODP) Stock Fundamental Analysis

NASDAQ:ODP - Nasdaq - US88337F1057 - Common Stock - Currency: USD

18.11  +0.04 (+0.22%)

After market: 18.11 0 (0%)

Fundamental Rating

4

Taking everything into account, ODP scores 4 out of 10 in our fundamental rating. ODP was compared to 121 industry peers in the Specialty Retail industry. ODP has an average financial health and profitability rating. ODP is cheap, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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4

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.
The reported net income has been mixed in the past 5 years: ODP reported negative net income in multiple years.
In the past 5 years ODP always reported a positive cash flow from operatings.
ODP Yearly Net Income VS EBIT VS OCF VS FCFODP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M 600M

1.2 Ratios

With a Return On Assets value of -1.00%, ODP perfoms like the industry average, outperforming 41.03% of the companies in the same industry.
ODP has a Return On Equity (-4.32%) which is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 6.50%, ODP is doing good in the industry, outperforming 60.68% of the companies in the same industry.
ODP had an Average Return On Invested Capital over the past 3 years of 8.47%. This is below the industry average of 12.33%.
Industry RankSector Rank
ROA -1%
ROE -4.32%
ROIC 6.5%
ROA(3y)1.1%
ROA(5y)-0.22%
ROE(3y)3.69%
ROE(5y)-0.27%
ROIC(3y)8.47%
ROIC(5y)7.55%
ODP Yearly ROA, ROE, ROICODP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20

1.3 Margins

In the last couple of years the Profit Margin of ODP has grown nicely.
The Operating Margin of ODP (2.57%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ODP has grown nicely.
With a Gross Margin value of 21.05%, ODP is not doing good in the industry: 80.34% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of ODP has remained more or less at the same level.
Industry RankSector Rank
OM 2.57%
PM (TTM) N/A
GM 21.05%
OM growth 3Y6.22%
OM growth 5Y2.64%
PM growth 3YN/A
PM growth 5Y13.46%
GM growth 3Y0.89%
GM growth 5Y-0.53%
ODP Yearly Profit, Operating, Gross MarginsODP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15 20

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4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ODP is destroying value.
The number of shares outstanding for ODP has been reduced compared to 1 year ago.
Compared to 5 years ago, ODP has less shares outstanding
The debt/assets ratio for ODP has been reduced compared to a year ago.
ODP Yearly Shares OutstandingODP Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M 50M
ODP Yearly Total Debt VS Total AssetsODP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

2.2 Solvency

ODP has an Altman-Z score of 2.06. 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 (2.06) is comparable to the rest of the industry.
The Debt to FCF ratio of ODP is 3.46, which is a good value as it means it would take ODP, 3.46 years of fcf income to pay off all of its debts.
ODP has a better Debt to FCF ratio (3.46) than 68.38% of its industry peers.
ODP has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
ODP has a Debt to Equity ratio of 0.28. This is comparable to the rest of the industry: ODP outperforms 58.12% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.28
Debt/FCF 3.46
Altman-Z 2.06
ROIC/WACC0.64
WACC10.24%
ODP Yearly LT Debt VS Equity VS FCFODP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B 2B

2.3 Liquidity

ODP has a Current Ratio of 0.92. This is a bad value and indicates that ODP is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.92, ODP is doing worse than 82.05% of the companies in the same industry.
A Quick Ratio of 0.47 indicates that ODP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.47, ODP is in line with its industry, outperforming 46.15% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.92
Quick Ratio 0.47
ODP Yearly Current Assets VS Current LiabilitesODP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

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1

3. Growth

3.1 Past

ODP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.09%.
Measured over the past years, ODP shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -30.76% on average per year.
ODP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.79%.
Measured over the past years, ODP shows a decrease in Revenue. The Revenue has been decreasing by -6.60% on average per year.
EPS 1Y (TTM)-41.09%
EPS 3Y-26.94%
EPS 5Y-30.76%
EPS Q2Q%-62.23%
Revenue 1Y (TTM)-11.79%
Revenue growth 3Y-6.92%
Revenue growth 5Y-6.6%
Sales Q2Q%-11.4%

3.2 Future

ODP is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -9.74% yearly.
Based on estimates for the next years, ODP will show a decrease in Revenue. The Revenue will decrease by -4.52% on average per year.
EPS Next Y-41.88%
EPS Next 2Y-15.87%
EPS Next 3Y-9.74%
EPS Next 5YN/A
Revenue Next Year-11.29%
Revenue Next 2Y-7.09%
Revenue Next 3Y-4.52%
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.
ODP Yearly Revenue VS EstimatesODP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 5B 10B 15B
ODP Yearly EPS VS EstimatesODP Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10 20 30 40

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7

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 5.59, the valuation of ODP can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of ODP indicates a rather cheap valuation: ODP is cheaper than 97.44% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.62, ODP is valued rather cheaply.
A Price/Forward Earnings ratio of 4.59 indicates a rather cheap valuation of ODP.
ODP's Price/Forward Earnings ratio is rather cheap when compared to the industry. ODP is cheaper than 98.29% of the companies 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 22.70.
Industry RankSector Rank
PE 5.59
Fwd PE 4.59
ODP Price Earnings VS Forward Price EarningsODP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ODP is valued cheaply inside the industry as 98.29% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ODP is valued cheaply inside the industry as 91.45% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 7.68
EV/EBITDA 2.14
ODP Per share dataODP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150 200

4.3 Compensation for Growth

A cheap valuation may be justified as ODP's earnings are expected to decrease with -9.74% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.87%
EPS Next 3Y-9.74%

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0

5. Dividend

5.1 Amount

No dividends for ODP!.
Industry RankSector Rank
Dividend Yield N/A

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ODP CORP/THE

NASDAQ:ODP (2/21/2025, 8:00:01 PM)

After market: 18.11 0 (0%)

18.11

+0.04 (+0.22%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)11-06 2024-11-06/bmo
Earnings (Next)02-26 2025-02-26/bmo
Inst Owners104.48%
Inst Owner Change-91.17%
Ins Owners3.88%
Ins Owner Change0.08%
Market Cap545.47M
Analysts74.29
Price Target42.16 (132.8%)
Short Float %14.99%
Short Ratio8.89
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-54.91%
Min EPS beat(2)-56.16%
Max EPS beat(2)-53.67%
EPS beat(4)1
Avg EPS beat(4)-32.53%
Min EPS beat(4)-56.16%
Max EPS beat(4)17.28%
EPS beat(8)5
Avg EPS beat(8)-5.75%
EPS beat(12)8
Avg EPS beat(12)9.32%
EPS beat(16)10
Avg EPS beat(16)10.04%
Revenue beat(2)0
Avg Revenue beat(2)-3.35%
Min Revenue beat(2)-3.54%
Max Revenue beat(2)-3.16%
Revenue beat(4)0
Avg Revenue beat(4)-3.72%
Min Revenue beat(4)-5.46%
Max Revenue beat(4)-2.75%
Revenue beat(8)0
Avg Revenue beat(8)-3.15%
Revenue beat(12)2
Avg Revenue beat(12)-2.11%
Revenue beat(16)2
Avg Revenue beat(16)-3.61%
PT rev (1m)0%
PT rev (3m)-12.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-17.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.18%
Valuation
Industry RankSector Rank
PE 5.59
Fwd PE 4.59
P/S 0.08
P/FCF 7.68
P/OCF 3.17
P/B 0.64
P/tB 1.38
EV/EBITDA 2.14
EPS(TTM)3.24
EY17.89%
EPS(NY)3.94
Fwd EY21.77%
FCF(TTM)2.36
FCFY13.02%
OCF(TTM)5.71
OCFY31.53%
SpS238.11
BVpS28.42
TBVpS13.11
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -1%
ROE -4.32%
ROCE 9.09%
ROIC 6.5%
ROICexc 7.14%
ROICexgc 9.52%
OM 2.57%
PM (TTM) N/A
GM 21.05%
FCFM 0.99%
ROA(3y)1.1%
ROA(5y)-0.22%
ROE(3y)3.69%
ROE(5y)-0.27%
ROIC(3y)8.47%
ROIC(5y)7.55%
ROICexc(3y)10.39%
ROICexc(5y)9.28%
ROICexgc(3y)13.95%
ROICexgc(5y)13.17%
ROCE(3y)11.85%
ROCE(5y)10.56%
ROICexcg growth 3Y8.22%
ROICexcg growth 5Y3.58%
ROICexc growth 3Y13.73%
ROICexc growth 5Y8.41%
OM growth 3Y6.22%
OM growth 5Y2.64%
PM growth 3YN/A
PM growth 5Y13.46%
GM growth 3Y0.89%
GM growth 5Y-0.53%
F-Score3
Asset Turnover1.94
Health
Industry RankSector Rank
Debt/Equity 0.28
Debt/FCF 3.46
Debt/EBITDA 0.83
Cap/Depr 100%
Cap/Sales 1.41%
Interest Coverage 7.67
Cash Conversion 60.35%
Profit Quality N/A
Current Ratio 0.92
Quick Ratio 0.47
Altman-Z 2.06
F-Score3
WACC10.24%
ROIC/WACC0.64
Cap/Depr(3y)72.29%
Cap/Depr(5y)65.28%
Cap/Sales(3y)1.12%
Cap/Sales(5y)1.1%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-41.09%
EPS 3Y-26.94%
EPS 5Y-30.76%
EPS Q2Q%-62.23%
EPS Next Y-41.88%
EPS Next 2Y-15.87%
EPS Next 3Y-9.74%
EPS Next 5YN/A
Revenue 1Y (TTM)-11.79%
Revenue growth 3Y-6.92%
Revenue growth 5Y-6.6%
Sales Q2Q%-11.4%
Revenue Next Year-11.29%
Revenue Next 2Y-7.09%
Revenue Next 3Y-4.52%
Revenue Next 5YN/A
EBIT growth 1Y-38.26%
EBIT growth 3Y-1.12%
EBIT growth 5Y-4.13%
EBIT Next Year-5.94%
EBIT Next 3Y-0.2%
EBIT Next 5YN/A
FCF growth 1Y-16.47%
FCF growth 3Y-18.47%
FCF growth 5Y-12.48%
OCF growth 1Y-3.91%
OCF growth 3Y-11.96%
OCF growth 5Y-11.99%