Office Depot Inc

Find Ratings Reports
ODP : NASDAQ : Services
$3.51 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 14,649,400
07/28/16 - 4:00 PM ET

Financial Analysis


OFFICE DEPOT INC's gross profit margin for the first 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 0.86 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.40% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)3544.03877.0
EBITDA ($mil)170.0205.0
EBIT ($mil)115.0131.0
Net Income ($mil)46.045.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)879.0995.0
Total Assets ($mil)6034.06548.0
Total Debt ($mil)1474.01544.0
Equity ($mil)1661.01622.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin25.7126.08
EBITDA Margin4.795.28
Operating Margin3.243.38
Sales Turnover2.352.39
Return on Assets0.14-3.05
Return on Equity0.54-12.33
Debt Q1 FY16 Q1 FY15
Current Ratio1.61.52
Debt/Capital0.470.49
Interest Expense22.025.0
Interest Coverage5.235.24


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)550.11546.28
Div / share0.00.0
EPS0.080.08
Book value / share3.022.97
Institutional Own % n/a n/a
Avg Daily Volume1.4832265E79297706.0

Valuation


SELL. OFFICE DEPOT INC's P/E ratio indicates a significant premium compared to an average of 24.35 for the Specialty Retail industry and a significant premium compared to the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 1.15 indicates a significant discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 13.96. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ODP 347.00 Peers 24.35   ODP 56.82 Peers 15.74

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

ODP is trading at a significant premium to its peers.

 

Premium. 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 premium 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 7.54 Peers 20.26   ODP 0.08 Peers 2.04

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 1.15 Peers 13.96   ODP 102.63 Peers -3.13

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 0.13 Peers 1.56   ODP -9.40 Peers 8.06

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