ODP (ODP) AI Stock Analysis

• Market Cap: $546.90M
• Dividend Yield: N/A
• Average Volume (3M): 503.16K
• Price to Earnings (P/E): 28.3
• Beta (1Y): 0.72
• Revenue Growth: -10.19%
• EPS Growth: -140.90%
• Country: US
• Employees: 19,000
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Specialty Retail
• EPS (TTM): 1.06
• Shares Outstanding: 30,082,424
• 10 Day Avg. Volume: 449,324
• 30 Day Avg. Volume: 503,163
• PEG Ratio: -6.64
• Price to Book (P/B): 1.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.84
• Enterprise Value/Market Cap: 4.87
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 1.91
• Enterprise Value/Ebitda: 3.21
• 1Y Price Target: $35.00
• Price Target Upside: 93.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: $20.00 ▲(10.44%Upside)

ODP's overall stock score reflects a challenging financial performance marked by revenue declines and profitability issues, offset by some positive technical momentum and strategic shifts highlighted during the earnings call. While technical indicators suggest recent upward momentum, valuation concerns and ongoing business challenges affect the stock's attractiveness.

ODP Business Overview & Revenue Model

Company Description

The 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 Money

ODP Corporation generates revenue through multiple streams, primarily through the sale of office supplies, furniture, and technology products in its retail stores and online platforms. A significant portion of revenue comes from its Business Solutions Division, which provides products and services directly to businesses, government entities, and educational institutions via contractual agreements. Additionally, ODP earns money through its CompuCom division, which offers IT services and solutions to businesses. Strategic partnerships and supply agreements with various companies also contribute to its earnings, allowing ODP to offer a comprehensive suite of products and competitive pricing.

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
6.82B	6.99B	7.83B	8.49B	8.46B	9.71B
	Gross Profit
1.40B	1.45B	1.76B	1.85B	1.86B	2.13B
	EBIT
123.00M	163.00M	298.00M	243.00M	330.00M	311.00M
	EBITDA
189.00M	266.00M	335.00M	389.00M	405.00M	161.00M
	Net Income Common Stockholders
-47.00M	-3.00M	139.00M	166.00M	187.00M	-319.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
185.00M	166.00M	392.00M	403.00M	514.00M	729.00M
	Total Assets
3.47B	3.53B	3.89B	4.15B	4.87B	5.56B
	Total Debt
998.00M	1.06B	963.00M	881.00M	1.00B	1.37B
	Net Debt
813.00M	892.00M	571.00M	478.00M	487.00M	640.00M
	Total Liabilities
2.68B	2.72B	2.79B	2.86B	3.43B	3.68B
	Stockholders Equity
784.00M	807.00M	1.10B	1.29B	1.44B	1.88B
Cash Flow		Free Cash Flow
65.00M	32.00M	226.00M	138.00M	273.00M	417.00M
	Operating Cash Flow
149.00M	130.00M	331.00M	237.00M	346.00M	485.00M
	Investing Cash Flow
-106.00M	-126.00M	-2.00M	-10.00M	-79.00M	736.00M
	Financing Cash Flow
-136.00M	-225.00M	-340.00M	-355.00M	-459.00M	-1.19B

ODP Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 18.11 is above the 20-day moving average (MA) of 17.29, above the 50-day MA of 15.36, and below the 200-day MA of 22.22, indicating a neutral trend. The MACD of 0.71 indicates Negative momentum. The RSI at 61.74 is Neutral, neither overbought nor oversold. The STOCH value of 82.84 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
LQDT	74 Outperform	$759.91M	30.67	14.01%	―	35.78%	23.49%
ODP	63 Neutral	$546.90M	28.33	4.96%	―	-10.19%	-140.90%
Sector *	63 Neutral	$6.94B	11.34	2.80%	4.26%	2.68%	-24.70%
PRTS	52 Neutral	$50.93M	―	-54.32%	―	-14.49%	-210.54%
BNED	50 Neutral	$396.05M	―	-36.88%	―	1.38%	63.65%
NHTC	49 Neutral	$54.92M	108.16	1.44%	17.20%	-0.62%	1.15%
QVCGA	41 Neutral	$34.03M	―		―	-7.66%	-735.19%

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.