Office Depot Inc

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ODP : NASDAQ : Services
$5.58 0.0 | 0.0%
Today's Range: 5.555 - 5.65
Avg. Daily Volume: 6452500.0
06/27/17 - 4:00 PM ET

Financial Analysis


OFFICE DEPOT INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. OFFICE DEPOT INC has weak liquidity. Currently, the Quick Ratio is 0.78 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 17.63% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)2676.02876.0
EBITDA ($mil)187.0172.0
EBIT ($mil)147.0124.0
Net Income ($mil)116.046.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)744.0879.0
Total Assets ($mil)5435.06034.0
Total Debt ($mil)1173.01474.0
Equity ($mil)1954.01661.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin26.7226.53
EBITDA Margin6.985.98
Operating Margin5.494.31
Sales Turnover1.871.78
Return on Assets11.020.14
Return on Equity36.186.56
Debt Q1 FY17 Q1 FY16
Current Ratio1.581.6
Debt/Capital0.380.47
Interest Expense13.022.0
Interest Coverage11.315.64


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)516.64550.11
Div / share0.030.0
EPS0.140.11
Book value / share3.783.02
Institutional Own % n/a n/a
Avg Daily Volume6401378.05188943.0

Valuation


HOLD. OFFICE DEPOT INC's P/E ratio indicates a significant discount compared to an average of 21.78 for the Specialty Retail industry and a significant discount compared to the S&P 500 average of 25.75. For additional comparison, its price-to-book ratio of 1.46 indicates a significant discount versus the S&P 500 average of 3.09 and a significant discount versus the industry average of 21.49. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, OFFICE DEPOT INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ODP 4.27 Peers 21.78   ODP 4.72 Peers 13.51

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ODP 10.11 Peers 18.60   ODP NM Peers 1.65

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.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ODP 1.46 Peers 21.49   ODP 545.00 Peers 12.00

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ODP 0.28 Peers 1.45   ODP -5.35 Peers 5.75

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 industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

ODP significantly trails its peers on the basis of sales growth

 

 

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