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ODP (ODP)
NASDAQ:ODP
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ODP
(NASDAQ:ODP)
49Neutral
ODP (ODP) vs. S&P 500 (SPY)
Market Cap
$486.02M
Dividend YieldN/A
Average Volume (3M)620.85K
Price to Earnings (P/E)33.5
Beta (1Y)0.81
Revenue Growth-10.71%
EPS Growth-86.13%
CountryUS
Employees20,000
SectorConsumer Cyclical
Sector Strength50
IndustryRetail - Discretionary
Share Statistics
EPS (TTM)0.48
Shares Outstanding29,817,245
10 Day Avg. Volume868,387
30 Day Avg. Volume620,846
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.07
Price to Cash Flow (P/CF)4.30
P/FCF Ratio88.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$35.00Price Target Upside117.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
ODP Business Overview & Revenue Model
Company DescriptionThe ODP Corporation (ODP) is a leading provider of business services, products, and digital workplace technology solutions to small, medium, and enterprise businesses. The company operates across three primary segments: Business Solutions, Retail, and CompuCom. ODP offers a wide range of products including office supplies, furniture, technology products, and copy and print services through its various brands and platforms, including Office Depot and OfficeMax.
How the Company Makes MoneyODP generates revenue through multiple streams. The Business Solutions Division provides business services and products directly to customers, including customized procurement solutions and managed print services. The Retail Division earns revenue through sales at Office Depot and OfficeMax physical stores as well as online e-commerce platforms, offering a variety of office supplies and services. The CompuCom Division provides IT services and solutions, deriving income from technology support, cloud services, and infrastructure management. Additionally, ODP benefits from strategic partnerships and vendor arrangements that enhance its product offerings and operational efficiencies.
ODP Financial Statement Overview
Summary
ODP has faced challenges with declining revenues and profitability metrics over the past several years. The company demonstrates moderate financial stability with balanced leverage and adequate cash flow generation. However, fluctuating profit margins and decreasing total assets suggest potential vulnerabilities in sustaining growth and profitability in the long term.Income Statement
The company has experienced a declining revenue trend over the years, with a notable reduction from $10.65 billion in 2019 to $6.99 billion in 2024. Gross profit margins have remained relatively stable, but the net profit margin has been inconsistent, showing a significant improvement in recent years after a loss in 2020. The EBIT and EBITDA margins suggest moderate operational efficiency but have been declining, indicating potential challenges in maintaining profitability.50
Neutral
Balance Sheet
The debt-to-equity ratio is moderate, reflecting a balanced approach to leveraging debt, although equity has decreased over time. Return on equity has fluctuated, showing moderate returns relative to equity investment. The equity ratio indicates a stable proportion of equity to total assets, though assets have decreased over the years, suggesting potential liquidity concerns.55
Neutral
Cash Flow
Free cash flow has shown growth in the most recent year, indicating improved cash generation from operations despite declining revenues. The operating cash flow to net income ratio is strong, suggesting good cash conversion efficiency. However, the overall cash flow from operations has been volatile, reflecting variability in cash generation.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 6.99B | 7.83B | 8.49B | 8.46B | 9.71B | Gross Profit |
| 1.45B | 1.76B | 1.85B | 1.86B | 2.13B | EBIT |
| 163.00M | 298.00M | 243.00M | 330.00M | 311.00M | EBITDA |
| 266.00M | 335.00M | 389.00M | 405.00M | 161.00M | Net Income Common Stockholders |
| -3.00M | 139.00M | 166.00M | 187.00M | -319.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 166.00M | 392.00M | 403.00M | 514.00M | 729.00M | Total Assets |
| 3.53B | 3.89B | 4.15B | 4.87B | 5.56B | Total Debt |
| 788.00M | 963.00M | 881.00M | 1.00B | 1.37B | Net Debt |
| 622.00M | 571.00M | 478.00M | 487.00M | 640.00M | Total Liabilities |
| 2.72B | 2.79B | 2.86B | 3.43B | 3.68B | Stockholders Equity |
| 807.00M | 1.10B | 1.29B | 1.44B | 1.88B |
| Cash Flow | Free Cash Flow | |||
| 61.00M | 226.00M | 138.00M | 273.00M | 417.00M | Operating Cash Flow |
| 159.00M | 331.00M | 237.00M | 346.00M | 485.00M | Investing Cash Flow |
| -126.00M | -2.00M | -10.00M | -79.00M | 736.00M | Financing Cash Flow |
| -225.00M | -340.00M | -355.00M | -459.00M | -1.19B |
ODP Technical Analysis
Negative
16.10
Price Trends
20.50
Negative
24.06
Negative
29.22
Negative
Market Momentum
-1.41
Negative
39.59
Neutral
70.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ODP, the sentiment is Negative. The current price of 16.1 is below the 20-day moving average (MA) of 17.28, below the 50-day MA of 20.50, and below the 200-day MA of 29.22, indicating a bearish trend. The MACD of -1.41 indicates Negative momentum. The RSI at 39.59 is Neutral, neither overbought nor oversold. The STOCH value of 70.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ODP.
ODP Risk Analysis
ODP disclosed 34 risk factors in its most recent earnings report. ODP reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ODP Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $702.44B | 36.28 | 22.23% | 0.95% | 5.07% | 25.86% | |
74 Outperform | $413.04B | 54.32 | 32.89% | 0.50% | 6.13% | 12.14% | |
73 Outperform | $2.08T | 36.02 | 24.29% | ― | 10.99% | 91.61% | |
70 Outperform | $51.67B | 12.73 | 29.12% | 3.96% | -0.79% | -0.90% | |
67 Neutral | $16.00B | 18.43 | 31.63% | 4.77% | -4.43% | -24.58% | |
59 Neutral | $12.41B | 10.34 | 1.32% | 3.61% | 1.65% | -18.04% | |
49 Neutral | $486.02M | 33.46 | 9.43% | ― | -10.71% | -86.13% |
* Consumer Cyclical Sector Average
Performance Comparison
ODP
ODP
16.10
-34.28
-68.04%
AMZN
Amazon
198.89
20.14
11.27%
BBY
Best Buy Co
72.64
-1.60
-2.16%
COST
Costco
927.08
199.12
27.35%
TGT
Target
107.28
-52.12
-32.70%
WMT
Walmart
85.20
24.70
40.83%
ODP Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -16.10% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook for The ODP Corporation. While there are significant positive developments, such as the entry into the hospitality industry and record-breaking contracts, these are counterbalanced by notable declines in revenue and operating income, as well as challenges in the retail segment.Highlights
Landmark Agreement in Hospitality Industry
ODP secured a milestone agreement with a leading hospitality management company to become a key supplier and distribution partner, marking its entry into the $16 billion hospitality supply industry.
Third-Party Revenue Growth
Veyor, ODP's supply chain business, achieved a 150% increase in third-party revenue compared to the previous year, highlighting strong progress in attracting new third-party customers.
Largest Contract in Company's History
ODP secured the largest enterprise contract in its history, valued up to $1.5 billion over a ten-year period, within its traditional B2B distribution supply chain segments.
Launch of Optimized for Growth Restructuring Plan
ODP launched a strategic initiative aimed at accelerating revenue growth in B2B, expected to generate more than $1.3 billion in total value over its duration.
Lowlights
Decline in Revenue
Total revenue for the fourth quarter was down about 10% compared to the previous year, largely due to lower sales in the retail business and reduced consumer traffic.
Decreased Operating Income
GAAP operating income was $20 million in the quarter, a significant decrease from $52 million in the prior year period.
Challenging Year for ODP Business Solutions
ODP Business Solutions faced a challenging year with a 9% decline in revenue for the fourth quarter, influenced by a weak macroeconomic environment and intense competition.
Retail Segment Struggles
Office Depot's revenue declined by 13% in the quarter, driven by fewer retail stores in service and lower consumer traffic.
Company Guidance
During The ODP Corporation's fourth quarter and full-year 2024 earnings call, the company outlined various metrics and strategic initiatives for future growth, particularly emphasizing their B2B transformation. The company reported total revenue of $1.6 billion for the quarter, down 10% from the previous year, and total revenue of $7 billion for the full year, an 11% decrease from 2023. Adjusted operating income for the fourth quarter was $32 million, compared to $57 million in the previous year, and adjusted EBITDA was $58 million, down from $83 million. The company highlighted its entry into the $16 billion hospitality market through a significant contract with a leading hospitality management company, expected to contribute to future growth. Furthermore, ODP's new "optimized for growth" plan aims to accelerate B2B revenue, targeting a $380 million uplift in EBITDA over a multiyear period, while generating approximately $1.3 billion in total value, excluding early B2B revenue capture benefits. Despite challenges, the management expressed optimism about future growth, driven by strategic realignment and expansion into new industry segments, while also planning to provide more specific 2025 guidance in the coming quarters.ODP Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
ODP Appoints Co-Chief Financial Officers for Strategic Growth
Positive
Dec 12, 2024
The ODP Corporation has announced the appointment of Max Hood and Adam Haggard as Co-Chief Financial Officers. Max Hood will continue his role as the principal accounting officer, while Adam Haggard brings over 20 years of experience within the company to his new position. Both executives have entered into Letter Agreements outlining their compensation, including a base salary of $400,000, bonus eligibility, and participation in the company’s Long-Term Incentive Plan. These appointments may strengthen ODP’s financial strategy and operations, providing stability in leadership and potentially enhancing the company’s market position.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.