Home Sectors Consumer Cyclical Latest Trend: Office Depot (NASDAQ: ODP)

Latest Trend: Office Depot (NASDAQ: ODP)

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Office Depot is in the consumer cyclical sector and is in the retail apparel and specialty industry. The company CEO is Gerry P. Smith. Office Depot Inc is a supplier of office products and services. It offers products including office supplies, paper, ink, and tone, cleaning chemical and equipment's, monitors and equipment's, computers and tablets, office appliances, and school supplies.

Previous Intraday Trading Performance:

The ODP stock showed a previous change of -1.42% with an open at 2.82 and a close of 2.78. It reached an intraday high of 2.86 and a low of 2.75.

SeekingAlpha:  Office Depot: A Disruptee With Legs?

Liquidity:

The stock has a market cap of $1.6b with 557.8m shares outstanding, of which the float is 531.2m shares. Trading volume reached 4,078,955 shares compared to its average volume of 11,210,349 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Office Depot shares returned 8.59% and in the past 30 trading days it returned 17.30%. Over three months, it changed 36.42%. In one year it has changed -48.54% and within that year its 52-week high was 6.26 and its 52-week low was 2.00. ODP stock is 39.00% above its 52 Week Low.

Our calculations show a 200 day moving average of 2.94 and a 50 day moving average of 2.57. Currently ODP stock is trading -5.60% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  Office Depot: A Disruptee With Legs?

Earnings:

The last annual fiscal EPS for the company was reported at 0.34 that ended on 31st of December 2017, which according to the previous close, that is a PE of 8.18. Based on 4 analyst estimates, the consensus EPS for the next quarter is 0.03. The TTM EPS is 0.36, which comes to a TTM PE of 7.72.

The following are the last four quarter reported earnings per share:
03-31-2018:  0.08
12-31-2017:  0.08
09-30-2017:  0.14
06-30-2017:  0.06

The dividend per share is currently 0.10, which is a dividend yield of 3.55%. Also, the payout ratio is 27.78%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 4.69, which means it is possibly undervalued and has a margin of safety of 40.74%

Indicators to Watch:

Based on the latest filings, there is 97.20% of institutional ownership. Short-interest is 24,627,553, which is 4.41% of shares outstanding. The short-interest ratio or days-to-cover ratio is 2.20. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 2.61

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Fundamental Indicators:

Based on last reported financials, the company's return on equity is 4.80%, return on assets is 1.67%, profit margin is 0.96%, price-to-sales is 0.20 and price-to-book is 0.73.

Company Scores:

All scores are out of six:
 5  :Valuation Score
 1  :Past Performance Score
 4  :Financial Strength Score
 1  :Future Growth Score
 3  :Dividend Score
 2  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks. Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.

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