Office Story

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ODP -- USA Stock  

USD 18.31  0.31  1.66%

In spite of very weak fundamental indicators, Office Depot displayed solid returns over the last few months and may actually be approaching a breakup point. The entity current chance of financial distress is under 44 percent. Will insiders continue to be optimistic, or should we expect a sell-off?
Published over a month ago
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Does Office Depot (NASDAQ:ODP) has healthy fundamental indicators based on the recent roll up?
Office Depot holds a performance score of 8 on a scale of zero to a hundred. The company holds a Beta of 0.565, which implies possible diversification benefits within a given portfolio. Let's try to break down what Office's beta means in this case. As returns on the market increase, Office Depot returns are expected to increase less than the market. However, during the bear market, the loss on holding Office Depot will be expected to be smaller as well. Although it is essential to pay attention to Office Depot current trending patterns, it is also good to be reasonable about what you can do with equity existing price patterns. Our philosophy towards forecasting future potential of any stock is to look not only at its past charts but also at the business as a whole, including all available fundamental and technical indicators. To evaluate if Office Depot expected return of 13.93 will be sustainable into the future, we have found twenty-one different technical indicators, which can help you to check if the expected returns are sustainable. Use Office Depot information ratio, as well as the relationship between the potential upside and kurtosis to analyze future returns on Office Depot.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Office Depot income statement, its balance sheet, and the statement of cash flows. Potential Office Depot investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Office Depot investors may use each financial statement separately, they are all related. The changes in Office Depot's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Office Depot's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages. The goal of Office Depot fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Office Depot performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Office Depot shares is the value that is considered the true value of the share. If the intrinsic value Office is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Office Depot. Please read more on our fundamental analysis page.

What is Office Asset Breakdown?

Office Depot reports assets on its Balance Sheet. It represents the amount of Office resources that either has an existing economic value or will provide some form of benefits in the future. To get a better handle on how balance sheet or income statements item affect Office volatility, please check the breakdown of all its fundamentals

Are Office Depot Earnings Expected to grow?

The future earnings power of Office Depot involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Office Depot factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Office Depot stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Office expected earnings.

And What about dividends?

A dividend is the distribution of a portion of Office Depot earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Office Depot dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Office one year expected dividend income is about $0.05 per share.
Office Depot Preferred Dividends Income Statement Impact is very stable at the moment as compared to the past year. Office Depot reported last year Preferred Dividends Income Statement Impact of 41.4 Million. As of 25th of September 2020, Dividend Yield is likely to grow to 0.0113, while Payment of Dividends and Other Cash Distributions is likely to drop (28.1 M).
Last ReportedProjected for 2020
Preferred Dividends Income Statement Impact41.4 M46.1 M
Payment of Dividends and Other Cash Distributions-26 M-28.1 M
Dividend Yield 0.011  0.0113 
Dividends per Basic Common Share 0.50  0.77 
Investing in dividend-paying stocks, such as Office Depot is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Office Depot must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Office Depot. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

Office Depot Gross Profit

Office Depot Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Office Depot previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Office Depot Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

Is Office Depot valued appropriately by the market?

There are few distinct groups of Office Depot stakehholders that the SEC considers insiders. Investors usually gain information through their work as corporate directors, officers, or employees. If these individuals share the information with a friend, family, or business partner and the person who receives the information exchanges stock in the company, he or shie is also an insider. Let's take a look at how the ownership of Office is distributed among investors.

Ownership Allocation

Office Depot owns a total of fifty-two million six hundred thirty thousand outstanding shares. The majority of Office Depot outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Office Depot to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Office Depot. Please pay attention to any change in the institutional holdings of Office Depot as this could imply that something significant has changed or about to change at the company. Please note that no matter how much assets the company maintains, if the real value of the company is less than the current market value, you may not be able to make money on it.

Institutions
93.72%
Retail Investors4.56
Insiders1.72
Institutions93.72
 2015 2016 2017 2020 (projected)
Long Term Debt to Equity0.260.190.440.46
Interest Coverage2.899.168.539.2

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Office Depot has an asset utilization ratio of 164.55 percent. This suggests that the company is making $1.65 for each dollar of assets. An increasing asset utilization means that Office Depot is more efficient with each dollar of assets it utilizes for everyday operations.

Current Assets
3.5 B
Assets Non Current
2.8 B
Current Assets3.47 Billion47.57
Assets Non Current2.8 Billion38.34
Goodwill525.11 Million7.19
Tax Assets502.79 Million6.89

Our Office analysis suggests possible reversion in September

Office Depot recent variance upswings over 11333.14. Office Depot is displaying above-average volatility over the selected time horizon. Investors should scrutinize Office Depot independently to ensure intended market timing strategies are aligned with expectations about Office Depot volatility.

Our Final Take On Office Depot

Although other companies in the specialty retail industry are either recovering or due for a correction, Office may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither pick up nor short any shares of Office Depot at this time. The Office Depot risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Office Depot.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Office Depot. Please refer to our Terms of Use for any information regarding our disclosure principles.

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