Office Depot Inc

Find Ratings Reports
ODP : NASDAQ : Services
$4.59 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 5336800.0
03/29/17 - 4:00 PM ET

Financial Analysis


OFFICE DEPOT INC's gross profit margin for the fourth quarter of its fiscal year 2016 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 0.71 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 15.53% 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)2726.02766.0
EBITDA ($mil)141.0136.0
EBIT ($mil)100.080.0
Net Income ($mil)80.015.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)763.01069.0
Total Assets ($mil)5540.06442.0
Total Debt ($mil)1185.01509.0
Equity ($mil)1852.01603.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin25.525.74
EBITDA Margin5.174.91
Operating Margin3.672.89
Sales Turnover1.991.82
Return on Assets9.540.12
Return on Equity36.665.73
Debt Q4 FY16 Q4 FY15
Current Ratio1.461.48
Debt/Capital0.390.48
Interest Expense17.022.0
Interest Coverage5.883.64


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)515.09548.92
Div / share0.030.0
EPS0.10.06
Book value / share3.62.92
Institutional Own % n/a n/a
Avg Daily Volume5174614.08756137.0

Valuation


HOLD. OFFICE DEPOT INC's P/E ratio indicates a significant discount compared to an average of 23.07 for the Specialty Retail industry and a significant discount compared to the S&P 500 average of 26.33. For additional comparison, its price-to-book ratio of 1.25 indicates a significant discount versus the S&P 500 average of 2.93 and a significant discount versus the industry average of 18.99. 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 3.67 Peers 23.07   ODP 6.28 Peers 14.72

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 9.02 Peers 18.92   ODP NM Peers 1.76

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 1.25 Peers 18.99   ODP 623.52 Peers 41.97

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 0.21 Peers 1.53   ODP -6.03 Peers 7.77

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

 

 

Latest Stock Upgrades/Downgrades