The ODP Corporation
Find Ratings ReportsODP CORP's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its subsector. ODP CORP has weak liquidity. Currently, the Quick Ratio is 0.52 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has decreased by 14.45% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 1806.0 | 2106.0 |
EBITDA ($mil) | 67.0 | 83.0 |
EBIT ($mil) | 39.0 | 52.0 |
Net Income ($mil) | -37.0 | 17.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 392.0 | 403.0 |
Total Assets ($mil) | 3886.0 | 4149.0 |
Total Debt ($mil) | 1236.0 | 1162.0 |
Equity ($mil) | 1101.0 | 1287.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 23.48 | 22.65 |
EBITDA Margin | 3.7 | 3.94 |
Operating Margin | 2.16 | 2.47 |
Sales Turnover | 2.02 | 2.05 |
Return on Assets | 3.57 | 4.0 |
Return on Equity | 12.62 | 13.83 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 0.99 | 1.03 |
Debt/Capital | 0.53 | 0.47 |
Interest Expense | 5.0 | 6.0 |
Interest Coverage | 7.8 | 8.67 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 36.96 | 42.21 |
Div / share | 0.0 | 0.0 |
EPS | -0.99 | 0.76 |
Book value / share | 29.79 | 30.49 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 279682.0 | 276140.0 |
HOLD. ODP CORP's P/E ratio indicates a significant discount compared to an average of 55.65 for the Sporting Goods, Hobby, Musical Inst, Book Retailer subsector and a significant discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 1.69 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 9.50. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, ODP CORP proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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ODP 14.91 | Peers 55.65 | ODP 5.63 | Peers 15.89 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. ODP is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. ODP is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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ODP 7.03 | Peers 23.14 | ODP 0.24 | Peers 13.29 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. ODP is trading at a significant discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. ODP trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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ODP 1.69 | Peers 9.50 | ODP -6.12 | Peers -13.13 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. ODP is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. ODP is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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ODP 0.24 | Peers 1.51 | ODP -7.78 | Peers 2.20 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. ODP is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. ODP significantly trails its peers on the basis of sales growth. |
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