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Office Depot

Nasdaq:ODP
Snowflake Description

Very undervalued with excellent balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ODP
Nasdaq
$1B
Market Cap
  1. Home
  2. US
  3. Retail
Company description

Office Depot, Inc. provides business services and supplies, products, and technology solutions. The last earnings update was 53 days ago. More info.


Add to Portfolio Compare Print
  • Office Depot has significant price volatility in the past 3 months.
ODP Share Price and Events
7 Day Returns
-2.8%
NasdaqGS:ODP
0.1%
US Specialty Retail
-0.3%
US Market
1 Year Returns
13.9%
NasdaqGS:ODP
27.1%
US Specialty Retail
7%
US Market
ODP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Office Depot (ODP) -2.8% -30.1% -17.7% 13.9% -60.3% -40.7%
US Specialty Retail 0.1% 6.8% 12.8% 27.1% 31.2% 58.1%
US Market -0.3% 2% 8.5% 7% 37.7% 46.8%
1 Year Return vs Industry and Market
  • ODP underperformed the Specialty Retail industry which returned 27.1% over the past year.
  • ODP outperformed the Market in United States of America which returned 7% over the past year.
Price Volatility
ODP
Industry
5yr Volatility vs Market

Value

 Is Office Depot undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Office Depot to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Office Depot.

NasdaqGS:ODP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:ODP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Specialty Retail Unlevered Beta Simply Wall St/ S&P Global 0.87
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.867 (1 + (1- 21%) (115.16%))
1.439
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.44
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.439 * 5.96%)
11.31%

Discounted Cash Flow Calculation for NasdaqGS:ODP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Office Depot is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:ODP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 11.31%)
2019 327.00 Analyst x1 293.78
2020 320.00 Analyst x1 258.29
2021 317.78 Est @ -0.69% 230.44
2022 318.85 Est @ 0.33% 207.73
2023 322.20 Est @ 1.05% 188.59
2024 327.22 Est @ 1.56% 172.07
2025 333.46 Est @ 1.91% 157.54
2026 340.65 Est @ 2.15% 144.59
2027 348.57 Est @ 2.33% 132.92
2028 357.11 Est @ 2.45% 122.34
Present value of next 10 years cash flows $1,908.29
NasdaqGS:ODP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $357.11 × (1 + 2.73%) ÷ (11.31% – 2.73%)
$4,277.25
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $4,277.25 ÷ (1 + 11.31%)10
$1,465.36
NasdaqGS:ODP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,908.29 + $1,465.36
$3,373.65
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,373.65 / 543.23
$6.21
NasdaqGS:ODP Discount to Share Price
Calculation Result
Value per share (USD) From above. $6.21
Current discount Discount to share price of $2.46
= -1 x ($2.46 - $6.21) / $6.21
60.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Office Depot is available for.
Intrinsic value
>50%
Share price is $2.46 vs Future cash flow value of $6.21
Current Discount Checks
For Office Depot to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Office Depot's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Office Depot's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Office Depot's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Office Depot's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:ODP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-29) in USD $0.18
NasdaqGS:ODP Share Price ** NasdaqGS (2019-04-18) in USD $2.46
United States of America Specialty Retail Industry PE Ratio Median Figure of 66 Publicly-Listed Specialty Retail Companies 16.74x
United States of America Market PE Ratio Median Figure of 3,081 Publicly-Listed Companies 18.18x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Office Depot.

NasdaqGS:ODP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:ODP Share Price ÷ EPS (both in USD)

= 2.46 ÷ 0.18

13.74x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Office Depot is good value based on earnings compared to the US Specialty Retail industry average.
  • Office Depot is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Office Depot's expected growth come at a high price?
Raw Data
NasdaqGS:ODP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.74x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
15%per year
United States of America Specialty Retail Industry PEG Ratio Median Figure of 57 Publicly-Listed Specialty Retail Companies 1.76x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NasdaqGS:ODP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.74x ÷ 15%

0.91x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Office Depot is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Office Depot's assets?
Raw Data
NasdaqGS:ODP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-29) in USD $3.91
NasdaqGS:ODP Share Price * NasdaqGS (2019-04-18) in USD $2.46
United States of America Specialty Retail Industry PB Ratio Median Figure of 99 Publicly-Listed Specialty Retail Companies 1.67x
United States of America Market PB Ratio Median Figure of 5,184 Publicly-Listed Companies 1.91x
NasdaqGS:ODP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:ODP Share Price ÷ Book Value per Share (both in USD)

= 2.46 ÷ 3.91

0.63x

* Primary Listing of Office Depot.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Office Depot is good value based on assets compared to the US Specialty Retail industry average.
X
Value checks
We assess Office Depot's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Specialty Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Specialty Retail industry average (and greater than 0)? (1 check)
  5. Office Depot has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Office Depot expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
15%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Office Depot expected to grow at an attractive rate?
  • Office Depot's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Office Depot's earnings growth is expected to exceed the United States of America market average.
  • Office Depot's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:ODP Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:ODP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 15%
NasdaqGS:ODP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts -0.6%
United States of America Specialty Retail Industry Earnings Growth Rate Market Cap Weighted Average 10.3%
United States of America Specialty Retail Industry Revenue Growth Rate Market Cap Weighted Average 5.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:ODP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:ODP Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 10,827 180 2
2020-12-31 10,853 445 180 4
2019-12-31 10,901 449 182 4
2018-12-31 11,025 552 156 4
NasdaqGS:ODP Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-29 11,015 627 99
2018-09-29 10,926 606 64
2018-06-30 10,659 584 103
2018-03-31 10,394 573 105
2017-12-30 10,240 458 146
2017-09-30 10,385 454 250
2017-07-01 10,601 358 480
2017-04-01 10,821 611 691
2016-12-31 11,021 370 679
2016-09-24 11,061 460 656
2016-06-25 11,271 409 368
2016-03-26 10,726 33 109

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Office Depot's earnings are expected to grow by 15% yearly, however this is not considered high growth (20% yearly).
  • Office Depot's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:ODP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Office Depot Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ODP Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.34 0.34 0.34 1.00
2020-12-31 0.33 0.33 0.33 1.00
2019-12-31 0.33 0.33 0.33 1.00
2018-12-31 0.28 0.28 0.28 1.00
NasdaqGS:ODP Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-29 0.18
2018-09-29 0.12
2018-06-30 0.19
2018-03-31 0.20
2017-12-30 0.28
2017-09-30 0.48
2017-07-01 0.92
2017-04-01 1.30
2016-12-31 1.26
2016-09-24 1.20
2016-06-25 0.67
2016-03-26 0.20

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Office Depot is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Office Depot's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Office Depot has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Office Depot performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Office Depot's growth in the last year to its industry (Specialty Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Office Depot has delivered over 20% year on year earnings growth in the past 5 years.
  • Office Depot's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Office Depot's 1-year earnings growth is negative, it can't be compared to the US Specialty Retail industry average.
Earnings and Revenue History
Office Depot's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Office Depot Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ODP Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-29 11,015.00 99.00 2,155.00
2018-09-29 10,926.00 64.00 2,171.00
2018-06-30 10,659.00 103.00 2,110.00
2018-03-31 10,394.00 105.00 2,055.00
2017-12-30 10,240.00 146.00 2,019.00
2017-09-30 10,385.00 250.00 2,047.00
2017-07-01 10,601.00 480.00 2,113.00
2017-04-01 10,821.00 691.00 2,172.00
2016-12-31 11,021.00 679.00 2,236.00
2016-09-24 11,061.00 656.00 2,267.00
2016-06-25 11,271.00 368.00 2,324.00
2016-03-26 10,726.00 109.00 2,215.00
2015-12-26 11,727.00 92.00 2,412.00
2015-09-26 12,794.00 -24.00 2,666.00
2015-06-27 13,817.00 -36.00 2,900.00
2015-03-28 15,619.00 -200.00 3,337.00
2014-12-27 12,710.00 -295.00 2,733.00
2014-09-27 15,749.00 -415.00 3,446.00
2014-06-28 14,299.00 -326.00 3,178.00
2014-03-29 12,878.00 -185.00 2,877.00
2013-12-28 11,242.00 -93.00 2,560.00
2013-09-28 10,379.11 34.56 2,359.11
2013-06-29 10,453.04 -154.01 2,390.89
2013-03-30 10,541.19 -168.29 2,429.87
2012-12-29 10,696.00 -110.00 2,440.00
2012-09-29 11,042.59 -80.28 2,733.57
2012-06-30 11,186.39 69.06 2,936.17

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Office Depot has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Office Depot used its assets less efficiently than the US Specialty Retail industry average last year based on Return on Assets.
  • Office Depot's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Office Depot's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Specialty Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Office Depot has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Office Depot's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Office Depot's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Office Depot is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Office Depot's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Office Depot's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Office Depot Company Filings, last reported 3 months ago.

NasdaqGS:ODP Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-29 2,126.00 1,539.00 658.00
2018-09-29 2,197.00 1,738.00 925.00
2018-06-30 2,156.00 1,765.00 747.00
2018-03-31 2,175.00 1,781.00 737.00
2017-12-30 2,138.00 1,808.00 622.00
2017-09-30 2,042.00 1,063.00 788.00
2017-07-01 1,975.00 1,162.00 763.00
2017-04-01 1,954.00 1,173.00 744.00
2016-12-31 1,852.00 1,185.00 763.00
2016-09-24 1,849.00 1,191.00 801.00
2016-06-25 1,860.00 1,462.00 1,118.00
2016-03-26 1,661.00 1,474.00 879.00
2015-12-26 1,603.00 1,498.00 860.00
2015-09-26 1,580.00 1,523.00 958.00
2015-06-27 1,583.00 1,536.00 867.00
2015-03-28 1,622.00 1,544.00 927.00
2014-12-27 1,621.00 1,541.00 1,071.00
2014-09-27 1,779.00 1,554.00 965.00
2014-06-28 1,848.00 1,563.00 768.00
2014-03-29 2,018.00 1,574.00 870.00
2013-12-28 2,118.00 1,584.00 955.00
2013-09-28 970.43 495.18 724.74
2013-06-29 954.94 649.55 471.96
2013-03-30 1,022.02 653.57 549.26
2012-12-29 1,048.00 659.00 671.00
2012-09-29 1,063.43 671.11 619.53
2012-06-30 1,102.90 674.56 422.68
  • Office Depot's level of debt (72.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (74.9% vs 72.4% today).
  • Debt is well covered by operating cash flow (40.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.8x coverage).
X
Financial health checks
We assess Office Depot's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Office Depot has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Office Depot's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.07%
Current annual income from Office Depot dividends. Estimated to be 4.32% next year.
If you bought $2,000 of Office Depot shares you are expected to receive $81 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Office Depot's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.39%).
  • Office Depot's dividend is above the markets top 25% of dividend payers in United States of America (3.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:ODP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United States of America Specialty Retail Industry Average Dividend Yield Market Cap Weighted Average of 38 Stocks 1.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:ODP Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.10 1.00
2020-12-31 0.11 2.00
2019-12-31 0.10 2.00
2018-12-31 0.10 2.00
NasdaqGS:ODP Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-05 0.100 3.129
2018-08-07 0.100 3.381
2018-05-09 0.100 3.839
2018-02-06 0.100 4.188
2017-08-09 0.100 2.740
2017-05-09 0.100 1.824
2017-02-14 0.100 2.126
2016-11-02 0.100 2.219
2016-08-03 0.100 2.850

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Office Depot has been paying a dividend for less than 10 years.
  • Office Depot has only been paying a dividend for 3 years, and since then there has been no growth.
Current Payout to shareholders
What portion of Office Depot's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.6x coverage).
X
Income/ dividend checks
We assess Office Depot's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Office Depot afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Office Depot has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Office Depot's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Gerry Smith
COMPENSATION $8,922,720
AGE 55
TENURE AS CEO 2.2 years
CEO Bio

Mr. Gerry P. Smith has been the Chief Executive Officer at Office Depot, Inc. since February 27, 2017. Mr. Smith served as an Executive Vice President of Lenovo Group Limited and also served as its Chief Operating Officer PCs & Smart Devices since November 3, 2016. He served as the Chief Operating Officer of PC & EBG (Personal Computer and Enterprise Business Group) at Lenovo Group Limited from April 1, 2015 to May 26, 2016 and also served as its President of Data Center Group from May 26, 2016 to November 3, 2016, President of Enterprise Business Group & Americas until April 1, 2015, Senior Vice President of Global Supply Chain from August 2006 to November 2012, President of North American Operations since November 26, 2012. He served as the President of American Operations, Senior Vice President of Global Operations and Senior Vice President at Lenovo Group Limited. He joined Lenovo Group in August 2006. He led Lenovo’s American business unit covering the US, Canada, Brazil and the rest of Latin America. He held responsibility for sales, marketing, operations and customer service to meet its revenue, unit volume and profit objectives in these territories. He also heads the Global Operations Organization, which encompasses the end-to-end supply chain, procurement, supply/demand planning, quality management and customer services, among other functions. During this management assignment, Mr. Smith also led an initiative to start the Lenovo’s Singapore Design Centre. He served as Vice President in charge of Dell’s worldwide peripherals development and procurement team. From 1987 to 1993, he worked at Definicon, where he managed sales, marketing, procurement and operations for this technology start-up and he started his career as a Financial Analyst with EDS. Before joining Lenovo, he held a number of leadership roles at Dell, including Vice President and General Manager of Notebook Development of Peripherals Development and the Display Line of Business. He serves as an Executive Sponsor of the Lenovo’s corporate Lean Six Sigma Program. He serves as the Chairman of the Board of Directors for Lenovo’s development and manufacturing joint venture with Compal Electronics. He serves as a Member of Executive Advisory Board at SCM World Limited. He has been a Director at Office Depot, Inc. since February 27, 2017. For his accomplishments, he earned the 2009 Supply Chain Executive of the Year award at the SCM Logistics World 2009 conference. Mr. Smith holds a Bachelor's degree in Finance and Marketing from Pacific Lutheran University.

CEO Compensation
  • Gerry's compensation has been consistent with company performance over the past year.
  • Gerry's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Office Depot management team in years:

1.4
Average Tenure
52
Average Age
  • The average tenure for the Office Depot management team is less than 2 years, this suggests a new team.
Management Team

Gerry Smith

TITLE
CEO & Director
COMPENSATION
$9M
AGE
55
TENURE
2.2 yrs

Joe Lower

TITLE
Executive VP & CFO
COMPENSATION
$4M
AGE
51
TENURE
1.3 yrs

N. Bleisch

TITLE
Executive VP
COMPENSATION
$2M
AGE
59
TENURE
0.7 yrs

Jerri DeVard

TITLE
Executive VP & Chief Customer Officer
COMPENSATION
$2M
AGE
60
TENURE
1.6 yrs

Scott Kriss

TITLE
Senior VP & Chief Accounting Officer
AGE
50
TENURE
1 yrs

Brian Hale

TITLE
Executive VP & Chief Information Officer
COMPENSATION
$1M
AGE
45
TENURE
5.3 yrs

Tim Perrott

TITLE
Vice President of Investor Relations
TENURE
0.7 yrs

Kevin Moffitt

TITLE
Executive VP & Chief Retail Officer
AGE
44
TENURE
2.6 yrs

John Gannfors

TITLE
Executive VP and Chief Merchandising & Supply Chain Officer
COMPENSATION
$2M
AGE
52
TENURE
2 yrs

Udo Heskamp

TITLE
Group Chief Financial Officer
AGE
57
TENURE
0.8 yrs
Board of Directors Tenure

Average tenure and age of the Office Depot board of directors in years:

5.4
Average Tenure
63
Average Age
  • The tenure for the Office Depot board of directors is about average.
Board of Directors

Joseph Vassalluzzo

TITLE
Independent Non-Executive Chairman
COMPENSATION
$393K
AGE
70
TENURE
2.2 yrs

Gerry Smith

TITLE
CEO & Director
COMPENSATION
$9M
AGE
55
TENURE
2.2 yrs

Cindie Jamison

TITLE
Director
COMPENSATION
$256K
AGE
58
TENURE
5.7 yrs

Vincent Marino

TITLE
Director
COMPENSATION
$253K
AGE
68
TENURE
5.4 yrs

Kristin Campbell

TITLE
Director
COMPENSATION
$243K
AGE
57
TENURE
2.8 yrs

Nigel Travis

TITLE
Director
COMPENSATION
$233K
AGE
68
TENURE
7.1 yrs

Francesca Ruiz De Luzuriaga

TITLE
Director
COMPENSATION
$228K
AGE
65
TENURE
5.4 yrs

David Szymanski

TITLE
Director
COMPENSATION
$230K
AGE
61
TENURE
5.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
05. Jun 18 Buy Joseph Vassalluzzo Individual 04. Jun 18 04. Jun 18 58,800 $2.55 $149,881
04. Jun 18 Buy Nigel Travis Individual 31. May 18 31. May 18 10,000 $2.39 $23,941
01. Jun 18 Buy Joseph Lower Individual 30. May 18 30. May 18 20,000 $2.39 $47,798
X
Management checks
We assess Office Depot's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Office Depot has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should Office Depot, Inc. (NASDAQ:ODP) Be Your Next Stock Pick?

(NASDAQ:ODP) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … In the case of ODP, it

Simply Wall St -

Why You Should Care About Office Depot, Inc.’s (NASDAQ:ODP) Low Return On Capital

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Office Depot, Inc. (NASDAQ:ODP): What Are The Future Prospects?

Looking at Office Depot, Inc.'s (NASDAQ:ODP) earnings update on 29 December 2018, … with earnings expected to more than double in the upcoming year,

Simply Wall St -

How Much Are Office Depot, Inc. (NASDAQ:ODP) Insiders Spending On Buying Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Office Depot, Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'.

Simply Wall St -

The Office Depot Share Price Is Down 33% So Some Shareholders Are Getting Worried

(NASDAQ:ODP) shareholders should be happy to see the share price up 16% in the last month. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During three years of share price growth, Office Depot moved from a loss to profitability.

Simply Wall St -

What You Must Know About Office Depot, Inc.'s (NASDAQ:ODP) Financial Strength

(NASDAQ:ODP) with its market cap of US$1.6b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Companies operating in the Specialty Retail industry facing headwinds from current disruption,.

Simply Wall St -

An Examination Of Office Depot, Inc. (NASDAQ:ODP)

Office Depot, Inc. … is a company that has been able to sustain great financial health, trading at an attractive share price. … report on Office Depot here

Simply Wall St -

Is Office Depot, Inc. (NASDAQ:ODP) Struggling With Its 8.9% Return On Capital Employed?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

How Does Office Depot Inc (NASDAQ:ODP) Fare As A Dividend Stock?

Office Depot Inc (NASDAQ:ODP) has paid a dividend to shareholders in the last few years. … Does Office Depot tick all the boxes of a great dividend stock? … See our latest analysis for Office Depot

Simply Wall St -

A Look At The Fair Value Of Office Depot Inc (NASDAQ:ODP)

by taking the foreast future cash flows of the company and discounting them back to today's value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Company Info

Description

Office Depot, Inc. provides business services and supplies, products, and technology solutions. The company operates in three divisions: Business Solutions, Retail, and CompuCom. The Business Solutions division offers office supply products and services through sales forces, catalogs, and telesales, as well as through Internet Websites in the United States, Puerto Rico, U.S. Virgin Islands, and Canada. The Retail division operates a chain of retail stores, which offer office supplies; technology products and solutions; business machines and related supplies; print, cleaning, breakroom, and facilities products; and furniture in the United States, Puerto Rico, and the U.S. Virgin Islands. Its stores also provide printing, reproduction, mailing, and shipping services. As of April 4, 2019, this division operated 1,350 office supply stores. The CompuCom division sells information technology (IT) outsourcing services and products in the United States, Canada, and Costa Rica. It offers a range of solutions, including end user computing support, managed IT services, data center monitoring and management, service desk, network infrastructure, IT workforce solutions, mobile device management, and cloud services. The company offers its products under various labels, including Office Depot, OfficeMax, Foray, Ativa, TUL, Realspace, WorkPro, Brenton Studio, Highmark, and Grand & Toy. Office Depot, Inc. was founded in 1986 and is headquartered in Boca Raton, Florida.

Details
Name: Office Depot, Inc.
ODP
Exchange: NasdaqGS
Founded: 1986
$1,336,347,303
543,230,611
Website: http://www.officedepot.com
Address: Office Depot, Inc.
6600 North Military Trail,
Boca Raton,
Florida, 33496,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS ODP Common Stock Nasdaq Global Select US USD 01. Jun 1988
DB ODP Common Stock Deutsche Boerse AG DE EUR 01. Jun 1988
BMV ODP * Common Stock Bolsa Mexicana de Valores MX MXN 01. Jun 1988
Number of employees
Current staff
Staff numbers
44,000
Office Depot employees.
Industry
Specialty Stores
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/21 23:39
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/15
Last earnings filing: 2019/02/27
Last earnings reported: 2018/12/29
Last annual earnings reported: 2018/12/29


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.