NEW YORK (TheStreet) -- Office Depot (ODP - Get Report) was dropping 4% to $4.80 on Monday on the heels of a study that revealed the company has one of the worst password policies among the top 100 online retailers in the U.S.
Internet security firm Dashlane conducted a study that ranked Amazon (AMZN), Walmart (WMT), Macy's (M), Staples (SPLS) and Office Depot among the worst password policies, while Apple (AAPL) was the only company to earn a perfect score in the study. The firm used 25 criteria, most of which dealt with the account creation process on a given company's website, and then assigned points on a scale of -100 to 100.
Apple scored 100, while Office Depot, Walmart and Macy's each registered -35. Amazon ranked worst at -40, while Staples had -30.
Amazon, Walmart, Macy's and Staples were all down in early afternoon trading on Monday.
TheStreet Ratings team rates OFFICE DEPOT INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate OFFICE DEPOT INC (ODP) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, impressive record of earnings per share growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 359.9% when compared to the same quarter one year prior, rising from -$61.92 million to $160.90 million.
- OFFICE DEPOT INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, OFFICE DEPOT INC swung to a loss, reporting -$0.40 versus $0.16 in the prior year. This year, the market expects an improvement in earnings ($0.00 versus -$0.40).
- ODP, with its decline in revenue, underperformed when compared the industry average of 7.7%. Since the same quarter one year prior, revenues slightly dropped by 2.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The gross profit margin for OFFICE DEPOT INC is currently lower than what is desirable, coming in at 26.01%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 6.14% trails that of the industry average.
- Net operating cash flow has significantly decreased to -$25.56 million or 111.83% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: ODP Ratings Report