ODP CORP/THE (ODP) Stock Fundamental Analysis
NASDAQ:ODP - Nasdaq - US88337F1057 - Common Stock - Currency: USD
ODP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 121 industry peers in the Specialty Retail industry. ODP may be in some trouble as it scores bad on both profitability and health. ODP is cheap, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years ODP had a positive operating cash flow.
1.2 Ratios
ODP has a Return On Assets of -0.09%. This is comparable to the rest of the industry: ODP outperforms 46.28% of its industry peers.
The Return On Equity of ODP (-0.37%) is comparable to the rest of the industry.
ODP has a Return On Invested Capital (6.43%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ODP is significantly below the industry average of 14.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.09% | ||
| ROE | -0.37% | ||
| ROIC | 6.43% |
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
With a Operating Margin value of 2.48%, ODP perfoms like the industry average, outperforming 51.24% of the companies in the same industry.
In the last couple of years the Operating Margin of ODP has declined.
With a Gross Margin value of 20.66%, ODP is not doing good in the industry: 79.34% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of ODP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.48% | ||
| PM (TTM) | N/A | ||
| GM | 20.66% |
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 just above the Cost of Capital (WACC), so ODP is still creating some value.
The number of shares outstanding for ODP has been reduced compared to 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 2.07. 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 (2.07) which is in line with its industry peers.
ODP has a debt to FCF ratio of 8.72. This is a slightly negative value and a sign of low solvency as ODP would need 8.72 years to pay back of all of its debts.
ODP has a Debt to FCF ratio (8.72) which is comparable to the rest of the industry.
ODP has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
ODP has a Debt to Equity ratio (0.33) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 8.72 | ||
| Altman-Z | 2.07 |
ROIC/WACC0.69
WACC9.29%
2.3 Liquidity
ODP has a Current Ratio of 0.93. 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 0.93 is on the low side compared to the rest of the industry. ODP is outperformed by 78.51% of its industry peers.
A Quick Ratio of 0.43 indicates that ODP may have some problems paying its short term obligations.
ODP has a Quick ratio of 0.43. This is comparable to the rest of the industry: ODP outperforms 42.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The earnings per share for ODP have decreased strongly by -46.50% in the last year.
The earnings per share for ODP have been decreasing by -40.80% on average. This is quite bad
ODP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.75%.
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)-46.5%
EPS 3Y-10.74%
EPS 5Y-40.8%
EPS Q2Q%-28.26%
Revenue 1Y (TTM)-10.75%
Revenue growth 3Y-6.18%
Revenue growth 5Y-8.07%
Sales Q2Q%-10.08%
3.2 Future
The Earnings Per Share is expected to decrease by -7.30% 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 -3.69% on average per year.
EPS Next Y-14.03%
EPS Next 2Y-4.63%
EPS Next 3Y-7.3%
EPS Next 5YN/A
Revenue Next Year-5.72%
Revenue Next 2Y-3%
Revenue Next 3Y-3.69%
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 cheaply with a Price/Earnings ratio of 4.60.
Based on the Price/Earnings ratio, ODP is valued cheaply inside the industry as 98.35% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ODP to the average of the S&P500 Index (28.29), we can say ODP is valued rather cheaply.
A Price/Forward Earnings ratio of 5.35 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 94.21% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, ODP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.6 | ||
| Fwd PE | 5.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ODP is valued cheaper than 95.04% of the companies in the same industry.
73.55% of the companies in the same industry are more expensive than ODP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.78 | ||
| EV/EBITDA | 1.93 |
4.3 Compensation for Growth
A cheap valuation may be justified as ODP's earnings are expected to decrease with -7.30% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.63%
EPS Next 3Y-7.3%
5. Dividend
5.1 Amount
ODP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.71
+0.53 (+4.02%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners104.48%
Inst Owner Change0%
Ins Owners3.88%
Ins Owner Change1.99%
Market Cap408.83M
Analysts74.29
Price Target29.92 (118.23%)
Short Float %17.98%
Short Ratio9.06
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)0
Avg EPS beat(2)-37.41%
Min EPS beat(2)-56.16%
Max EPS beat(2)-18.66%
EPS beat(4)0
Avg EPS beat(4)-41.51%
Min EPS beat(4)-56.16%
Max EPS beat(4)-18.66%
EPS beat(8)4
Avg EPS beat(8)-8.9%
EPS beat(12)7
Avg EPS beat(12)4.06%
EPS beat(16)10
Avg EPS beat(16)11%
Revenue beat(2)0
Avg Revenue beat(2)-1.58%
Min Revenue beat(2)-3.16%
Max Revenue beat(2)0%
Revenue beat(4)0
Avg Revenue beat(4)-3.04%
Min Revenue beat(4)-5.46%
Max Revenue beat(4)0%
Revenue beat(8)0
Avg Revenue beat(8)-2.85%
Revenue beat(12)1
Avg Revenue beat(12)-2.27%
Revenue beat(16)2
Avg Revenue beat(16)-3.06%
PT rev (1m)-11.11%
PT rev (3m)-29.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-43.19%
EPS NY rev (1m)-35.01%
EPS NY rev (3m)-35.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.88%
Revenue NY rev (1m)-0.63%
Revenue NY rev (3m)-3.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.6 | ||
| Fwd PE | 5.35 | ||
| P/S | 0.06 | ||
| P/FCF | 12.78 | ||
| P/OCF | 3.14 | ||
| P/B | 0.51 | ||
| P/tB | 1.17 | ||
| EV/EBITDA | 1.93 |
EPS(TTM)2.98
EY21.74%
EPS(NY)2.56
Fwd EY18.69%
FCF(TTM)1.07
FCFY7.83%
OCF(TTM)4.36
OCFY31.8%
SpS234.37
BVpS27.06
TBVpS11.67
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.09% | ||
| ROE | -0.37% | ||
| ROCE | 8.71% | ||
| ROIC | 6.43% | ||
| ROICexc | 7.02% | ||
| ROICexgc | 9.39% | ||
| OM | 2.48% | ||
| PM (TTM) | N/A | ||
| GM | 20.66% | ||
| FCFM | 0.46% |
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-Score3
Asset Turnover1.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 8.72 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | 101.03% | ||
| Cap/Sales | 1.4% | ||
| Interest Coverage | 9.11 | ||
| Cash Conversion | 48.15% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 2.07 |
F-Score3
WACC9.29%
ROIC/WACC0.69
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)-46.5%
EPS 3Y-10.74%
EPS 5Y-40.8%
EPS Q2Q%-28.26%
EPS Next Y-14.03%
EPS Next 2Y-4.63%
EPS Next 3Y-7.3%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.75%
Revenue growth 3Y-6.18%
Revenue growth 5Y-8.07%
Sales Q2Q%-10.08%
Revenue Next Year-5.72%
Revenue Next 2Y-3%
Revenue Next 3Y-3.69%
Revenue Next 5YN/A
EBIT growth 1Y-40.34%
EBIT growth 3Y-17.22%
EBIT growth 5Y-13.78%
EBIT Next Year37.24%
EBIT Next 3Y3.93%
EBIT Next 5YN/A
FCF growth 1Y-85.84%
FCF growth 3Y-51.06%
FCF growth 5Y-31.74%
OCF growth 1Y-60.73%
OCF growth 3Y-27.84%
OCF growth 5Y-18.7%