ODP Corp Beneish M Score

ODP
 Stock
  

USD 47.55  0.08  0.17%   

This module uses fundamental data of ODP Corp to approximate the value of its Beneish M Score. ODP Corp M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please check ODP Corp Piotroski F Score and ODP Corp Altman Z Score analysis.
  
ODP Corp Total Debt is very stable at the moment as compared to the past year. ODP Corp reported last year Total Debt of 1.36 Billion. As of 7th of December 2022, Debt Current is likely to grow to about 34.2 M, while Issuance Repayment of Debt Securities is likely to drop (367.1 M). ODP Corp Return on Investment is very stable at the moment as compared to the past year. ODP Corp reported last year Return on Investment of 12.65. As of 7th of December 2022, Cash Flow Per Share is likely to grow to 0.86, while Inventory Turnover is likely to drop 6.35.
At this time, it appears that ODP Corp is an unlikely manipulator. The earnings manipulation may begin if ODP Corp's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by ODP Corp executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of ODP Corp's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.76
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.88Focus
Asset QualityN/AFocus
Expense Coverage0.89Focus
Gross Margin Strengs1.12Focus
Accruals Factor0.89Focus
Depreciation Resistance1.24Focus
Net Sales Growth1.17Focus
Financial Leverage Condition1.07Focus

ODP Corp Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if ODP Corp's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense2.1 BB
Sufficiently Up
Decreasing
Slightly volatile
Revenues11.9 B10.2 B
Fairly Up
Decreasing
Very volatile
Trade and Non Trade Receivables1.8 B1.8 B
Fairly Up
Increasing
Slightly volatile
Property Plant and Equipment Net954.2 M691.1 M
Significantly Up
Decreasing
Very volatile
Operating Income367.9 M341 M
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations375.1 M467 M
Significantly Down
Increasing
Slightly volatile
Liabilities Non CurrentB1.9 B
Notably Up
Increasing
Slightly volatile
Current Liabilities2.4 BB
Fairly Up
Increasing
Very volatile
Total Liabilities3.9 B4.2 B
Notably Down
Increasing
Slightly volatile
Gross Margin27.0324.0332
Moderately Up
Decreasing
Stable
Depreciation Amortization and Accretion174 M162.9 M
Notably Up
Decreasing
Slightly volatile
Debt Non Current1.4 B1.3 B
Notably Up
Increasing
Slightly volatile
Debt Current34.2 M33.4 M
Fairly Up
Increasing
Very volatile
Total Debt1.5 B1.4 B
Moderately Up
Increasing
Stable
Assets Non CurrentBB
Sufficiently Up
Increasing
Slightly volatile
Current Assets3.3 B2.9 B
Fairly Up
Increasing
Stable
Total Assets5.8 B6.3 B
Significantly Down
Increasing
Slightly volatile

ODP Corp Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between ODP Corp's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards ODP Corp in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find ODP Corp's degree of accounting gimmicks and manipulations.

About ODP Corp Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

2.14 Billion

ODP Corp Operating Expenses is very stable at the moment as compared to the past year. ODP Corp reported last year Operating Expenses of 1.97 Billion

About ODP Corp Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze ODP Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of ODP Corp using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of ODP Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
The ODP Corporation provides business services and supplies, products, and digital workplace technology solutions for small, medium, and enterprise businesses. The ODP Corporation was incorporated in 1986 and is headquartered in Boca Raton, Florida. Office Depot operates under Specialty Retail classification in the United States and is traded on NASDAQ Exchange. It employs 26000 people.

ODP Corp Investors Sentiment

The influence of ODP Corp's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in ODP Corp. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to ODP Corp's public news can be used to forecast risks associated with investment in ODP Corp. The trend in average sentiment can be used to explain how an investor holding ODP Corp can time the market purely based on public headlines and social activities around ODP Corp. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
ODP Corp's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for ODP Corp's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average ODP Corp's news discussions. The higher the estimated score, the more favorable is the investor's outlook on ODP Corp.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards ODP Corp in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, ODP Corp's short interest history, or implied volatility extrapolated from ODP Corp options trading.

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Please check ODP Corp Piotroski F Score and ODP Corp Altman Z Score analysis. Note that the ODP Corp information on this page should be used as a complementary analysis to other ODP Corp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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Is ODP Corp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of ODP Corp. If investors know ODP Corp will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about ODP Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.26) 
Market Capitalization
2.2 B
Quarterly Revenue Growth YOY
(0.003) 
Return On Assets
0.0372
Return On Equity
0.1035
The market value of ODP Corp is measured differently than its book value, which is the value of ODP Corp that is recorded on the company's balance sheet. Investors also form their own opinion of ODP Corp's value that differs from its market value or its book value, called intrinsic value, which is ODP Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because ODP Corp's market value can be influenced by many factors that don't directly affect ODP Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between ODP Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine ODP Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ODP Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.