NasdaqGS:ODP

Stock Analysis Report

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Market Cap

US$2.7b

Last Updated

2021/06/11 22:13 UTC

Data Sources

Company Financials +

Executive Summary

The ODP Corporation provides business services and supplies, products, and digital workplace technology solutions for small, medium, and enterprise businesses. More Details


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has ODP's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ODP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: ODP's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

1.0%

ODP

-0.5%

US Specialty Retail

1.1%

US Market


1 Year Return

98.7%

ODP

75.1%

US Specialty Retail

45.5%

US Market

Return vs Industry: ODP exceeded the US Specialty Retail industry which returned 75.1% over the past year.

Return vs Market: ODP exceeded the US Market which returned 45.5% over the past year.


Shareholder returns

ODPIndustryMarket
7 Day1.0%-0.5%1.1%
30 Day24.4%-1.7%2.7%
90 Day25.1%0.6%4.5%
1 Year98.7%98.7%76.2%75.1%47.9%45.5%
3 Year81.0%68.0%84.5%77.6%59.3%49.4%
5 Year73.1%51.7%120.8%105.6%126.5%101.2%

Long-Term Price Volatility Vs. Market

How volatile is ODP's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ODP undervalued compared to its fair value and its price relative to the market?

25.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ODP ($49.01) is trading below our estimate of fair value ($67.03)

Significantly Below Fair Value: ODP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ODP is unprofitable, so we can't compare its PE Ratio to the US Specialty Retail industry average.

PE vs Market: ODP is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ODP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ODP is good value based on its PB Ratio (1.4x) compared to the US Specialty Retail industry average (3.3x).


Future Growth

How is ODP forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

61.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ODP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: ODP is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ODP's is expected to become profitable in the next 3 years.

Revenue vs Market: ODP's revenue is expected to decline over the next 3 years (-1.2% per year).

High Growth Revenue: ODP's revenue is forecast to decline over the next 3 years (-1.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ODP's Return on Equity is forecast to be low in 3 years time (11.1%).


Past Performance

How has ODP performed over the past 5 years?

-63.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ODP is currently unprofitable.

Growing Profit Margin: ODP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ODP is unprofitable, and losses have increased over the past 5 years at a rate of 63.9% per year.

Accelerating Growth: Unable to compare ODP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ODP is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (122.1%).


Return on Equity

High ROE: ODP has a negative Return on Equity (-15.87%), as it is currently unprofitable.


Financial Health

How is ODP's financial position?


Financial Position Analysis

Short Term Liabilities: ODP's short term assets ($2.4B) exceed its short term liabilities ($2.1B).

Long Term Liabilities: ODP's short term assets ($2.4B) exceed its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: ODP's debt to equity ratio (0.1%) is considered satisfactory.

Reducing Debt: ODP's debt to equity ratio has reduced from 77% to 0.1% over the past 5 years.

Debt Coverage: ODP's debt is well covered by operating cash flow (19150%).

Interest Coverage: ODP is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Dividend

What is ODP current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ODP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ODP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ODP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ODP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ODP is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ODP's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Gerry Smith (57 yo)

4.33yrs

Tenure

US$9,860,654

Compensation

Mr. Gerry P. Smith has been the Chief Executive Officer at The ODP Corporation (formerly known as Office Depot, Inc.). since February 27, 2017. He served as Principal Financial Officer at The ODP Corporati...


CEO Compensation Analysis

Compensation vs Market: Gerry's total compensation ($USD9.86M) is above average for companies of similar size in the US market ($USD5.21M).

Compensation vs Earnings: Gerry's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: ODP's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: ODP's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ODP insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4%.


Top Shareholders

Company Information

The ODP Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The ODP Corporation
  • Ticker: ODP
  • Exchange: NasdaqGS
  • Founded: 1986
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: US$2.683b
  • Shares outstanding: 54.75m
  • Website: https://investor.theodpcorp.com

Number of Employees


Location

  • The ODP Corporation
  • 6600 North Military Trail
  • Boca Raton
  • Florida
  • 33496
  • United States

Listings


Biography

The ODP Corporation provides business services and supplies, products, and digital workplace technology solutions for small, medium, and enterprise businesses. The company operates in three divisions: Busi...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/11 22:13
End of Day Share Price2021/06/11 00:00
Earnings2021/03/27
Annual Earnings2020/12/26


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.