ODP (ODP) AI Stock Analysis

• Market Cap: $841.75M
• Dividend Yield: N/A
• Average Volume (3M): 879.05K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 0.91
• Revenue Growth: -9.64%
• EPS Growth: N/A
• Country: US
• Employees: 19,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.51
• Shares Outstanding: 30,084,024
• 10 Day Avg. Volume: 1,787,084
• 30 Day Avg. Volume: 879,051
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.54
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 0.95
• Enterprise Value/Ebitda: 6.36
• 1Y Price Target: $29.00
• Price Target Upside: 3.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 64 Neutral
• Price Target: $30.00 ▲(7.22% Upside)

ODP's overall stock score is primarily influenced by its challenging financial performance, with declining revenues and profitability pressures. Despite strong technical indicators suggesting bullish momentum, the high P/E ratio and lack of dividend yield raise valuation concerns. The earnings call provided some positive insights into strategic execution and cash flow improvements, but these were overshadowed by revenue declines and retail segment challenges.

ODP Business Overview & Revenue Model

Company Description

ODP Corporation (ODP) is a leading provider of business services and products, primarily operating in the office supplies sector. The company delivers a wide array of solutions including office supplies, furniture, technology products, and business services to various customer segments, including small and medium-sized enterprises, government entities, and large corporations. ODP operates through multiple channels, including retail stores, e-commerce platforms, and business-to-business sales, positioning itself as a comprehensive resource for workplace needs.

How the Company Makes Money

ODP generates revenue through several key streams. Its primary source of income comes from the sale of office supplies and related products through its retail and online stores. The company also earns revenue from its business services, which include managed print services, contract sales, and customized solutions for businesses. Additionally, ODP has formed strategic partnerships with suppliers and manufacturers to enhance its product offerings and improve supply chain efficiency. The company's focus on e-commerce and digital solutions has also contributed significantly to its revenue growth, as more customers shift towards online purchasing.

ODP Financial Statement Overview

Summary

ODP faces a challenging financial landscape with revenue declines and profitability pressures. While cash flow management shows resilience with improved free cash flow, the high leverage and negative net income in TTM are concerning. The company needs to focus on boosting revenue and controlling costs to enhance financial health and shareholder value.

Income Statement

ODP has experienced fluctuating financial performance. The TTM (Trailing-Twelve-Months) data shows a Gross Profit Margin of 20.48% and a negative Net Profit Margin of -0.69%, indicating profitability challenges. Revenue has been on a declining trend, with a noticeable drop from $9.71 billion in 2020 to $6.82 billion in TTM. Despite these challenges, the company maintains a positive EBITDA Margin of 2.77% in TTM, although it has reduced from previous years.

Balance Sheet

The balance sheet reflects moderate financial stability. The Debt-to-Equity Ratio is 1.27 in TTM, indicating a high leverage compared to equity. The Equity Ratio stands at 22.61%, showing a relatively low equity base compared to total assets. The Return on Equity (ROE) is negative in TTM due to net losses, which raises concerns about shareholder returns.

Cash Flow

ODP's cash flow analysis reveals some strengths and weaknesses. The Free Cash Flow has grown to $65 million in TTM, up from $32 million in 2024, highlighting improved cash generation. The Operating Cash Flow to Net Income Ratio is positive, suggesting strong cash conversion despite net losses. However, the Free Cash Flow to Net Income Ratio is less favorable due to negative earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.69B	6.99B	7.82B	8.48B	8.46B	8.87B
Gross Profit	1.36B	1.45B	1.76B	1.84B	1.86B	1.95B
EBITDA	204.00M	266.00M	448.00M	439.00M	405.00M	161.00M
Net Income	26.00M	-3.00M	139.00M	166.00M	-208.00M	-319.00M
Balance Sheet
Total Assets	3.40B	3.53B	3.89B	4.15B	4.87B	5.56B
Cash, Cash Equivalents and Short-Term Investments	177.00M	166.00M	392.00M	403.00M	514.00M	729.00M
Total Debt	938.00M	1.32B	963.00M	881.00M	1.00B	1.37B
Total Liabilities	2.60B	2.72B	2.79B	2.86B	3.43B	3.68B
Stockholders Equity	796.00M	807.00M	1.10B	1.29B	1.44B	1.88B
Cash Flow
Free Cash Flow	95.00M	32.00M	226.00M	138.00M	273.00M	417.00M
Operating Cash Flow	176.00M	130.00M	331.00M	237.00M	346.00M	485.00M
Investing Cash Flow	-92.00M	-126.00M	-2.00M	-10.00M	-79.00M	736.00M
Financing Cash Flow	-96.00M	-225.00M	-340.00M	-355.00M	-459.00M	-1.19B

ODP Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ODP, the sentiment is Positive. The current price of 27.98 is above the 20-day moving average (MA) of 22.77, above the 50-day MA of 20.67, and above the 200-day MA of 18.95, indicating a bullish trend. The MACD of 1.95 indicates Negative momentum. The RSI at 74.32 is Negative, neither overbought nor oversold. The STOCH value of 99.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ODP.

ODP Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BBY	71 Outperform	$16.00B	20.99	28.65%	4.98%	-2.21%	-37.30%
CHWY	69 Neutral	$16.45B	111.91	38.76%	―	9.04%	-56.79%
ODP	64 Neutral	$841.75M	23.21	5.92%	―	-9.64%	―
BNED	50 Neutral	$333.73M	-0.17	―	―	1.38%	63.65%
QVCGA	47 Neutral	$113.42M	-0.03	121.85%	―	-7.15%	-1299.84%
BBBY	46 Neutral	$539.62M	-2.31	-159.03%	―	-26.63%	45.71%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

ODP Corporate Events

ODP Appoints Co-Chief Financial Officers for Strategic Growth

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.