ODP CORP/THE (ODP) Stock Fundamental Analysis
USA - NASDAQ:ODP - US88337F1057 - Common Stock
27.76 USD
-0.03 (-0.11%)
27.76 USD
0 (0%)
ODP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 120 industry peers in the Specialty Retail industry. The financial health of ODP is average, but there are quite some concerns on its profitability. ODP is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ODP was profitable.
ODP had a positive operating cash flow in the past year.
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 52.50% of its industry peers.
Looking at the Return On Equity, with a value of 3.27%, ODP is in line with its industry, outperforming 59.17% of the companies in the same industry.
ODP's Return On Invested Capital of 5.98% is fine compared to the rest of the industry. ODP outperforms 62.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ODP is below the industry average of 12.17%.
| 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 in line with its industry peers.
With a Operating Margin value of 2.27%, ODP perfoms like the industry average, outperforming 50.83% of the companies in the same industry.
In the last couple of years the Operating Margin of ODP has declined.
ODP's Gross Margin of 20.39% is on the low side compared to the rest of the industry. ODP is outperformed by 81.67% of its industry peers.
In the last couple of years the Gross Margin of ODP has declined.
| 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.
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 2.13. 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 in line with its industry peers.
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 72.50% 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 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/WACC0.62
WACC9.57%
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 75.00% of its industry peers.
ODP has a Quick 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.
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%.
The earnings per share for ODP have been decreasing by -40.80% on average. This is quite bad
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
Based on estimates for the next years, ODP will show a decrease in Earnings Per Share. The EPS will decrease by -4.75% on average per year.
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
Based on the Price/Earnings ratio of 9.44, the valuation of ODP can be described as reasonable.
Based on the Price/Earnings ratio, ODP is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
ODP is valuated cheaply when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.53, the valuation of ODP can be described as reasonable.
87.50% of the companies in the same industry are more expensive than ODP, based on the Price/Forward Earnings ratio.
ODP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.44 | ||
| Fwd PE | 9.53 |
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 92.50% of the companies listed in the same industry.
ODP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ODP is cheaper than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.8 | ||
| EV/EBITDA | 3.53 |
4.3 Compensation for Growth
A cheap valuation may be justified as ODP's earnings are expected to decrease with -4.75% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.14%
EPS Next 3Y-4.75%
5. Dividend
5.1 Amount
No dividends for ODP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
27.76
-0.03 (-0.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners103.16%
Inst Owner Change0.32%
Ins Owners5.33%
Ins Owner Change-0.03%
Market Cap836.13M
Analysts46.67
Price Target32.3 (16.35%)
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%
Revenue NY rev (3m)-1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.44 | ||
| Fwd PE | 9.53 | ||
| P/S | 0.13 | ||
| P/FCF | 8.8 | ||
| P/OCF | 4.75 | ||
| P/B | 1.05 | ||
| P/tB | 2.47 | ||
| EV/EBITDA | 3.53 |
EPS(TTM)2.94
EY10.59%
EPS(NY)2.91
Fwd EY10.49%
FCF(TTM)3.15
FCFY11.36%
OCF(TTM)5.84
OCFY21.05%
SpS222.05
BVpS26.43
TBVpS11.22
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
WACC9.57%
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 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%