Will latest ODP Corp (USA Stocks:ODP) debt levels change before the next press release?

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ODP Stock  USD 44.37  0.00  0.00%   
Ellen Johnson
By Ellen Johnson
Macroaxis Story
ODP Corp is scheduled to announce its earnings today. The next financial report is expected on the 3rd of May 2023. ODP Corp Cash Flow Per Share is relatively stable at the moment as compared to the past year. ODP Corp reported last year Cash Flow Per Share of 0.76. As of 03/01/2023, Revenue to Assets is likely to grow to 2.13, while PPandE Turnover is likely to drop 13.15. As many baby boomers are still indifferent towards specialty retail space, it makes sense to sum up ODP Corp as a unique choice for millenniums. Let's try to discuss if ODP Corp shares are reasonably priced going into April.
Published over three weeks ago
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Reviewed by Michael Smolkin

The company has 228 M in debt with debt to equity (D/E) ratio of 0.61, which is OK given its current industry classification.
The company holds a Beta of 1.4768, which implies a somewhat significant risk relative to the market. Let's try to break down what ODP Corp's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, ODP Corp will likely underperform. Even though it is essential to pay attention to ODP Corp current trending patterns, it is always good to be careful when utilizing equity existing price patterns. Our approach towards forecasting any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. ODP Corp exposes twenty-one different technical indicators, which can help you to evaluate its performance. ODP Corp has an expected return of -0.08%. Please be advised to check ODP Corp variance, value at risk, as well as the relationship between the Value At Risk and skewness to decide if ODP Corp performance from the past will be repeated at future time.
ODP Corp financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of ODP Corp, including all of ODP Corp's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of ODP Corp assets, the company is considered highly leveraged. Understanding the composition and structure of overall ODP Corp debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding ODP Corp Total Liabilities

ODP Corp liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. ODP Corp has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on ODP Corp balance sheet include debt obligations and money owed to different ODP Corp vendors, workers, and loan providers. Below is the chart of ODP Corp short long-term liabilities accounts currently reported on its balance sheet.
You can use ODP Corp financial leverage analysis tool to get a better grip on understanding its financial position

How important is ODP Corp's Liquidity

ODP Corp financial leverage refers to using borrowed capital as a funding source to finance ODP Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. ODP Corp 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 ODP Corp's total debt and its cash.

Is ODP Corp valued sensibly by the market?

ODP Corp reported the last year's revenue of 8.46 B. Total Income to common stockholders was 187 M with profit before taxes, overhead, and interest of 1.86 B.

Asset Breakdown

3.2 B
Assets Non Current
Goodwill
Tax Assets
2.8 B
Current Assets
Total Assets5.17 Billion
Current Assets2.76 Billion
Assets Non Current3.2 Billion
Goodwill633.54 Million
Tax Assets578.21 Million

Another small fall for ODP Corp

Latest potential upside is at 3.63.
As of the 1st of March, ODP Corp holds the risk adjusted performance of (0.016476). Concerning fundamental indicators, the technical analysis model allows you to check practical technical drivers of ODP Corp, as well as the relationship between them. Put it differently, you can use this information to find out if the company will indeed mirror its model of past market data, or the prices will eventually revert. We were able to break down nineteen technical drivers for ODP Corp, which can be compared to its competitors. Please check ODP Corp variance, value at risk, as well as the relationship between the Value At Risk and skewness to decide if ODP Corp is priced more or less accurately, providing market reflects its current price of 45.28 per share. Given that ODP Corp has jensen alpha of 0.051, we recommend you to check out ODP Corp's recent market performance to make sure the company can sustain itself at some point in the future.

Our Bottom Line On ODP Corp

While some other companies in the specialty retail industry are either recovering or due for a correction, ODP Corp may not be as strong as the others in terms of longer-term growth potentials. In closing, as of the 1st of March 2023, we believe that at this point, ODP Corp is fairly valued with low odds of financial turmoil within the next 2 years. Our actual buy vs. sell advice on the enterprise is Strong Hold.

Editorial Staff

Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. 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 Ellen Johnson do not own shares of ODP Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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