Staples (SPLS) Stock Declines, Contemplating U.K. Exit
NEW YORK (TheStreet) -- Staples (SPLS) stock is falling 4.24% to $8.47 today as the company announced that it has begun to contemplate leaving the U.K.
The Framingham, MA-based office supplies retailer has 259 stores in Europe, 107 of which are in the U.K.
The discussion surrounding a closure of its locations in the U.K. has been in the works since prior to the Brexit decision on June 23, but market volatility following the vote has brought the debate back to the forefront.
Staples has struggled in the changing retail market as more and more customers have turned to online sales for office supplies and electronics.
The company has also faltered recently in the wake of a failed deal with Office Depot (ODP).
In February of 2015, the company announced a planned merger with rival Office Depot for $6.3 billion. The deal fell through in May 2016 after a district court ruled in favor of the Federal Trade Commission, blocking the deal.
Separately, TheStreet Ratings rated this stock as a "hold" with a ratings score of C+.
The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity.
However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow.
You can view the full analysis from the report here: SPLS
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.