Overall ODP gets a fundamental rating of 4 out of 10. We evaluated ODP against 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.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

ODP had positive earnings in the past year.
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.
Each year in the past 5 years ODP had a positive operating cash flow.

1.2 Ratios

ODP has a Return On Assets of -0.27%. This is comparable to the rest of the industry: ODP outperforms 48.39% of its industry peers.
ODP has a Return On Equity (-1.09%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 6.28%, ODP is doing good in the industry, outperforming 60.48% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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.
The Gross Margin of ODP (20.37%) is worse than 80.65% of its industry peers.
In the last couple of years the Gross Margin of ODP has declined.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
Compared to 1 year ago, ODP has less shares outstanding
The number of shares outstanding for ODP has been reduced compared to 5 years ago.
Compared to 1 year ago, ODP has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 2.16 indicates that ODP is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ODP (2.16) 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.
With a decent Debt to FCF ratio value of 1.23, ODP is doing good in the industry, outperforming 79.84% of the companies in the same industry.
A Debt/Equity ratio of 0.17 indicates that ODP is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.17, ODP is in the better half of the industry, outperforming 63.71% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.17
Debt/FCF	1.23
Altman-Z	2.16

ROIC/WACC0.65

WACC9.73%

2.3 Liquidity

A Current Ratio of 0.91 indicates that ODP may have some problems paying its short term obligations.
The Current ratio of ODP (0.91) is worse 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.
The Quick ratio of ODP (0.45) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	0.91
Quick Ratio	0.45

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WACC

Debt/Equity

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Altman-Z score

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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%.
The earnings per share for ODP have been decreasing by -40.80% on average. This is quite bad
ODP shows a decrease in Revenue. In the last year, the revenue decreased by -8.91%.
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.
The Revenue is expected to decrease by -4.70% on average over the next years.

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 8.31, which indicates a very decent valuation of ODP.
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 27.25. ODP is valued rather cheaply when compared to this.
ODP is valuated reasonably with a Price/Forward Earnings ratio of 9.80.
85.48% of the companies in the same industry are more expensive than ODP, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 25.98. ODP is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	8.31
Fwd PE	9.8

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ODP is valued cheaply inside the industry as 93.55% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ODP is valued 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.