Office Stock Story

ODP
 Stock
  

USD 37.13  0.26  0.70%   

Office Depot Invested Capital is very stable at the moment as compared to the past year. Office Depot reported last year Invested Capital of 4.07 Billion. As of 3rd of August 2022, Tangible Asset Value is likely to grow to about 6.2 B, while Invested Capital Average is likely to drop about 4.2 B. If you have been keeping an eye on Office Depot you know that now may not be the best time to buy. We currently estimate Office Depot as undervalued. The real value is approaching 39.76 per share.
Published few days ago
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Are Office Depot (NASDAQ:ODP) unfluctuating fundamental indicators contributing to the recent decline?

Office Depot advice module can be used to check and cross-verify current recommendation provided by analysts analyzing the firm's potential to grow using all of fundamental, technical, data market data available at the time.
The company dividends can provide a clue to the current value of the stock. This firm is not expected to issue dividends this year as it is trying to preserve or re-invest any of the funds available for distribution to stakeholders.
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 of 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.

How important is Office Depot's Liquidity

Office Depot financial leverage refers to using borrowed capital as a funding source to finance Office Depot ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Office Depot financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Office Depot's total debt and its cash.

How does Office utilize its cash?

To perform a cash flow analysis of Office Depot, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Office Depot is receiving and how much cash it distributes out in a given period. The Office Depot cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Office Depot Net Cash Flow from Operations is very stable at the moment as compared to the past year. Office Depot reported last year Net Cash Flow from Operations of 467 Million

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?

Institutional investors typically avoid acquiring a high percentage of Office Depot stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of Office is distributed among investors.

Ownership Allocation

Office Depot has a total of 50.97 Million 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. Also note that almost one million nineteen thousand four hundred invesors are currently shorting Office Depot expressing very little confidence in its future performance.


Institutions
99.7%
Retail Investors-2.24
Insiders2.54
Institutions99.7
 2015 2016 2021 2022 (projected)
Interest Expense89 M80 M92 M92.39 M
Gross Profit2.46 B2.71 B2.44 B2.43 B

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 131.33 percent. This suggests that the company is making $1.31 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
3.3 B
Assets Non Current
B
Current Assets3.33 Billion44.14
Assets Non Current3.05 Billion40.43
Goodwill585.45 Million7.76
Tax Assets578.21 Million7.67

Office Depot is epected to finish above $36 in September

The standard deviation is down to 3.2 as of today. Office Depot exhibits very low volatility with skewness of -0.2 and kurtosis of 6.5. However, we advise investors to further study Office Depot technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Office Depot's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Office Depot's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Office Depot Implied Volatility

Office Depot's implied volatility exposes the market's sentiment of Office Depot stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Office Depot's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Office Depot stock will not fluctuate a lot when Office Depot's options are near their expiration.

Our Conclusion on Office Depot

Although some firms 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 a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither trade new shares of Office nor trade your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. 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.

Editorial Staff

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 Ellen Johnson 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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