Office Depot Inc

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ODP : NASDAQ : Services
$4.89 up 0.05 | 1.03%
Today's Range: 4.84 - 4.97
Avg. Daily Volume: 8369300.0
12/05/16 - 4:00 PM ET

Financial Analysis


OFFICE DEPOT INC's gross profit margin for the third quarter of its fiscal year 2016 has decreased 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 0.65 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 17.02% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)2836.03046.0
EBITDA ($mil)178.0230.0
EBIT ($mil)148.0160.0
Net Income ($mil)44.06.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)801.0958.0
Total Assets ($mil)5881.06459.0
Total Debt ($mil)1191.01523.0
Equity ($mil)1849.01580.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin26.6628.14
EBITDA Margin6.277.55
Operating Margin5.225.25
Sales Turnover2.01.98
Return on Assets5.35-1.4
Return on Equity34.55-1.51
Debt Q3 FY16 Q3 FY15
Current Ratio1.461.52
Debt/Capital0.390.49
Interest Expense19.022.0
Interest Coverage7.797.27


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)528.38548.73
Div / share0.030.0
EPS0.610.08
Book value / share3.52.88
Institutional Own % n/a n/a
Avg Daily Volume8078742.09323982.0

Valuation


HOLD. OFFICE DEPOT INC's P/E ratio indicates a significant discount compared to an average of 22.19 for the Specialty Retail industry and a significant discount compared to the S&P 500 average of 25.16. To use another comparison, its price-to-book ratio of 1.33 indicates a discount versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 13.42. 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 4.03 Peers 22.19   ODP 5.42 Peers 14.15

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 10.74 Peers 19.88   ODP 0.00 Peers 2.07

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ODP 1.33 Peers 13.42   ODP 3000.00 Peers 10.75

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 1.47   ODP -7.99 Peers 7.21

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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