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ODP (ODP)
NASDAQ:ODP
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ODP
(NASDAQ:ODP)
61Neutral
ODP (ODP) vs. S&P 500 (SPY)
Market Cap
$528.55M
Dividend YieldN/A
Average Volume (3M)688.22K
Price to Earnings (P/E)28.3
Beta (1Y)0.64
Revenue Growth-10.19%
EPS Growth-140.90%
CountryUS
Employees19,000
SectorConsumer Cyclical
Sector Strength75
IndustrySpecialty Retail
Share Statistics
EPS (TTM)1.06
Shares Outstanding30,082,424
10 Day Avg. Volume714,199
30 Day Avg. Volume688,216
Financial Highlights & Ratios
PEG Ratio-1.30
Price to Book (P/B)0.70
Price to Sales (P/S)0.00
P/FCF Ratio16.15
Enterprise Value/Market Cap2.67
Enterprise Value/Revenue0.05
Enterprise Value/Gross Profit0.97
Enterprise Value/Ebitda1.57
Forecast
1Y Price Target
$35.00Price Target Upside101.73% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
ODP Business Overview & Revenue Model
Company DescriptionThe ODP Corporation provides business services and supplies, products, and digital workplace technology solutions for small, medium, and enterprise businesses. The company operates in two divisions, Business Solutions and Retail. The Business Solutions division offers office supply products and services, cleaning and breakroom supplies, technology services, copy and print services, and office furniture products and services through sales forces, catalogs, and telesales, as well as through Internet Websites in the United States, Puerto Rico, the 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, as well as printing, copying, mailing, and shipping services. As of December 31, 2021, this division operated 1,038 retail stores in the United States, Puerto Rico, and the U.S. Virgin Islands. The company offers its products under various brands, including Office Depot, OfficeMax, and Grand&Toy, as well as others. The ODP Corporation was incorporated in 1986 and is headquartered in Boca Raton, Florida.
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 significant challenges with declining revenues and fluctuating profitability metrics over the past several years. While the company demonstrates moderate financial stability with balanced leverage and adequate cash flow generation, the 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 |
| 1.06B | 963.00M | 881.00M | 1.00B | 1.37B | Net Debt |
| 892.00M | 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 | |||
| 32.00M | 226.00M | 138.00M | 273.00M | 417.00M | Operating Cash Flow |
| 130.00M | 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
Neutral
17.35
Price Trends
14.65
Positive
17.73
Negative
23.20
Negative
Market Momentum
1.08
Negative
60.93
Neutral
66.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ODP, the sentiment is Neutral. The current price of 17.35 is above the 20-day moving average (MA) of 15.41, above the 50-day MA of 14.65, and below the 200-day MA of 23.20, indicating a neutral trend. The MACD of 1.08 indicates Negative momentum. The RSI at 60.93 is Neutral, neither overbought nor oversold. The STOCH value of 66.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ODP.
ODP Risk Analysis
ODP disclosed 33 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $771.78M | 31.50 | 14.01% | ― | 35.78% | 23.49% | |
62 Neutral | $6.98B | 11.38 | 2.86% | 3.90% | 2.64% | -22.07% | |
61 Neutral | $528.55M | 28.33 | 4.96% | ― | -10.19% | -140.90% | |
50 Neutral | $372.89M | ― | -36.88% | ― | 1.38% | 63.65% | |
50 Neutral | $52.95M | 104.30 | 1.44% | 17.39% | -0.62% | 1.15% | |
46 Neutral | $49.48M | ― | -54.32% | ― | -14.49% | -210.54% | |
40 Underperform | $88.90M | ― | ― | -7.66% | -735.19% |
* Consumer Cyclical Sector Average
Performance Comparison
ODP
ODP
17.35
-22.77
-56.75%
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0.10
-0.60
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LQDT
Liquidity Services
24.85
5.43
27.96%
PRTS
CarParts.com Inc
0.87
-0.22
-20.18%
BNED
Barnes & Noble Education
11.00
10.46
1937.04%
NHTC
Natural Health Trends
4.47
-1.68
-27.32%
ODP Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 27.29%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong cash flow generation, positive retail trends, and significant growth in the supply chain business. However, the company faced revenue declines, a GAAP operating loss, and challenges in the B2B segment, including slower onboarding of new contracts.Q1-2025 Updates
Positive Updates
Strong Free Cash Flow Generation
ODP Corporation generated $45 million in adjusted free cash flow, more than double compared to the same period last year.
Positive Retail Trends
Retail segment saw a 500 basis point improvement in same-store sales compared to last year, with further improvements in April and early May.
Supply Chain Business Growth
VEYER achieved over 85% year-over-year revenue growth from third-party customers.
Expansion into New Markets
ODP is expanding into the $16 billion hospitality market, establishing agreements with major suppliers and expecting significant contributions in the second half of the year.
Negative Updates
Overall Revenue Decline
Total revenue declined by 9% compared to the first quarter of last year, driven by fewer stores, reduced traffic, and lower sales in ODP business solutions.
GAAP Operating Loss
GAAP operating loss was $32 million, compared to GAAP operating income of $41 million in the prior year period.
Impact of Restructuring Charges
The quarter included $86 million of charges related to restructuring expenses and asset impairments.
B2B Segment Challenges
B2B revenue was down 8% year-over-year, with slower-than-anticipated onboarding of new contracts impacting results.
Company Guidance
During the ODP Corporation's First Quarter 2025 Earnings Conference Call, the company emphasized its strategic pivot towards B2B services and expansion into high-growth markets like hospitality. The CEO highlighted the company's strong start to the year with $76 million in adjusted EBITDA and a significant increase in adjusted free cash flow to $45 million. Despite a 9% decline in total revenue to $1.7 billion, largely due to fewer retail stores and lower sales in ODP business solutions, the company reported improved year-over-year performance trends. The consumer division, Office Depot, showed better top-line trends and higher margins, with comparable store trends improving by 300 basis points from the previous quarter and 500 basis points from the same period last year. The B2B segment is undergoing a gradual shift, with new contracts like CoreTrust expected to contribute more in the second half of the year. Additionally, VEYER, the company's supply chain business, achieved over 85% year-over-year revenue growth from third-party customers. The company's balance sheet remains robust, with $653 million in liquidity, and ongoing initiatives are expected to yield improved results in the latter half of 2025.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.