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 ODP Corp income statement, its balance sheet, and the statement of cash flows. Potential ODP Corp investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although ODP Corp investors may use each financial statement separately, they are all related. The changes in ODP Corp's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on ODP Corp'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 ODP Corp
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of ODP Corp performance into the future periods or doing a reasonable stock valuation. The intrinsic value of ODP Corp shares is the value that is considered the true value of the share. If
the intrinsic value of ODP 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 ODP Corp. Please read more on our
fundamental analysis page.
How effective is ODP Corp in utilizing its assets?
ODP Corp reports assets on its Balance Sheet. It represents the amount of ODP resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, ODP Corp aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Other Specialty Retail space. To get a better handle on how balance sheet or income statements item affect ODP volatility, please check the breakdown of all its
fundamentals.
Are ODP Corp Earnings Expected to grow?
The
future earnings power of ODP Corp involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of ODP Corp factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. ODP Corp
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 ODP
expected earnings.
ODP Corp Gross Profit
ODP Corp Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing ODP Corp 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 ODP Corp Gross Profit growth over the last 10 years. Please check ODP Corp's
gross profit and other
fundamental indicators for more details.
Is ODP Corp valued sensibly 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.
| Retail Investors | 4.56 |
| Insiders | 1.72 |
| Institutions | 93.72 |
| 2015 | 2016 | 2017 | 2020 (projected) |
Long Term Debt to Equity | 0.26 | 0.19 | 0.44 | 0.46 | Interest Coverage | 2.89 | 9.16 | 8.53 | 9.2 |
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 Assets3.5 B | Assets Non Current2.8 B | | |
| Current Assets | 3.47 Billion | 47.57 |
| Assets Non Current | 2.8 Billion | 38.34 |
| Goodwill | 525.11 Million | 7.19 |
| Tax Assets | 502.79 Million | 6.89 |
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.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile 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 ODP Corp. Please refer to our
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