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 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 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. Financial leverage can amplify the potential profits to ODP Corp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of ODP Corp's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). 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
| Total Assets | 5.17 Billion |
| Current Assets | 2.76 Billion |
| Assets Non Current | 3.2 Billion |
| Goodwill | 633.54 Million |
| Tax Assets | 578.21 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.
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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
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