The ODP Corporation (ODP) Stock Analysis

The ODP Corporation (ODP) Consumer Business Overview

The ODP Corporation, operating through its Business Solutions and Retail divisions, provides business services, supplies, and technology solutions to small, medium, and enterprise businesses. With a focus on office supplies, technology, and related services, ODP maintains a significant retail presence across the United States and its territories.

What Is the Investment Thesis for ODP?

The ODP Corporation presents a mixed investment thesis. While the company has a strong presence in the business solutions and retail sectors, its negative profit margin of -0.1% raises concerns about profitability. The company's beta of 1.16 suggests a slightly higher volatility compared to the market. Key growth catalysts include expanding digital workplace technology solutions and optimizing the retail footprint. However, declining retail sales and increasing competition pose significant risks. Investors should carefully consider these factors and monitor the company's progress in improving profitability and adapting to changing market dynamics. The market capitalization stands at $843M as of 2026-05-10.

Based on FMP financials and quantitative analysis

ODP Key Highlights

Market capitalization of $843M indicates its current valuation in the market.

• Gross margin of 20.4% reflects the company's efficiency in managing production costs.
• Operates 1,038 retail stores as of December 31, 2021, demonstrating a significant retail footprint.
• Beta of 1.16 suggests a slightly higher volatility compared to the market.
• Negative profit margin of -0.1% indicates challenges in achieving profitability.

Who Are ODP's Competitors?

ODP is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are ODP's Key Strengths?

Established brand presence with Office Depot and OfficeMax.

• Extensive retail network across the United States and its territories.
• Diverse product and service offerings catering to various business needs.
• Strong distribution network through multiple channels.

What Are ODP's Weaknesses?

Negative profit margin indicating profitability challenges.

• Declining retail sales in a competitive market.
• Dependence on traditional office supplies in a digital age.
• High operating costs associated with maintaining a large retail footprint.

What Could Drive ODP Stock Higher?

Expansion of digital workplace technology solutions to drive revenue growth.

• Optimization of retail footprint to improve profitability.
• Potential strategic partnerships or acquisitions to expand product and service offerings.
• Enhancement of e-commerce platform to increase online sales.

What Are the Key Risks for ODP?

Negative return on equity (-1.1%) — the business is not currently generating profit on shareholder capital.

• Insider selling — insiders were net sellers of roughly $34.5M recently.
• Intense competition from online retailers and traditional brick-and-mortar stores.
• Economic downturn impacting business spending on office supplies.
• Supply chain disruptions and rising input costs.
• Declining retail sales in a competitive market.
• Failure to adapt to changing consumer preferences and shift towards digital solutions.

What Are the Growth Opportunities for ODP?

• Expansion of Digital Workplace Technology Solutions: The market for digital workplace solutions is growing rapidly as businesses increasingly adopt remote work and cloud-based technologies. ODP can capitalize on this trend by expanding its offerings in areas such as collaboration tools, cybersecurity, and managed IT services. This expansion could target small and medium-sized businesses, offering scalable and affordable solutions. The total addressable market for digital workplace solutions is estimated to reach $85 billion by 2028, presenting a significant growth opportunity for ODP.
• Optimization of Retail Footprint: While the retail sector faces challenges, ODP can improve its performance by optimizing its store network. This includes closing underperforming stores, remodeling existing stores to enhance the customer experience, and focusing on high-traffic locations. By creating smaller, more efficient stores that offer a curated selection of products and services, ODP can reduce costs and improve profitability. This strategy could also involve partnerships with other retailers to create joint store concepts.
• Growth in Cleaning and Breakroom Supplies: With increased emphasis on workplace hygiene, the demand for cleaning and breakroom supplies is expected to remain strong. ODP can leverage its existing distribution network and customer relationships to expand its market share in this category. This includes offering a wider range of products, such as eco-friendly cleaning supplies and premium coffee and snack options. The market for cleaning and breakroom supplies is estimated at $30 billion annually.
• Enhancement of E-commerce Platform: Investing in and enhancing ODP's e-commerce platform can drive sales and improve customer engagement. This includes improving the user interface, offering personalized product recommendations, and providing seamless online ordering and delivery options. By creating a best-in-class e-commerce experience, ODP can attract new customers and retain existing ones. The e-commerce market for office supplies and related products is growing at a rate of 8% annually.
• Strategic Partnerships and Acquisitions: ODP can pursue strategic partnerships and acquisitions to expand its product and service offerings and enter new markets. This could include partnering with technology companies to offer integrated solutions or acquiring smaller competitors to consolidate market share. By carefully selecting partners and acquisition targets, ODP can accelerate its growth and create synergies across its business units.

What Are ODP's Competitive Advantages?

• Established brand recognition with Office Depot and OfficeMax.
• Extensive retail footprint across the United States, Puerto Rico, and the U.S. Virgin Islands.
• Comprehensive suite of products and services catering to diverse business needs.
• Long-standing relationships with suppliers and customers.

What Does ODP Do?

The ODP Corporation, formerly known as Office Depot, was incorporated in 1986 and is headquartered in Boca Raton, Florida. The company has evolved into a provider of business services, supplies, products, and digital workplace technology solutions. It operates through two primary divisions: Business Solutions and Retail. The Business Solutions division offers a comprehensive suite of products and services, including office supplies, cleaning and breakroom supplies, technology services, copy and print services, and office furniture. These are distributed through sales forces, catalogs, telesales, and online platforms across the United States, Puerto Rico, the U.S. Virgin Islands, and Canada. The Retail division operates a chain of retail stores, offering office supplies, technology products and solutions, business machines, print, cleaning, breakroom, and facilities products, and furniture. As of December 31, 2021, the Retail division operated 1,038 stores in the United States, Puerto Rico, and the U.S. Virgin Islands. The company's brands include Office Depot, OfficeMax, and Grand&Toy.

What Products and Services Does ODP Offer?

• Provides office supply products and services to businesses.
• Offers cleaning and breakroom supplies.
• Delivers technology services and solutions.
• Provides copy and print services.
• Offers office furniture products and services.
• Operates retail stores selling office supplies and related products.
• Provides printing, copying, mailing, and shipping services.

How Does ODP Make Money?

• Sells office supplies and related products through retail stores and online channels.
• Provides business services, including technology support and print services.
• Generates revenue through sales to small, medium, and enterprise businesses.
• Utilizes a combination of sales forces, catalogs, telesales, and internet websites for distribution.

What Industry Does ODP Operate In?

The ODP Corporation operates in the specialty retail industry, which is undergoing significant transformation due to e-commerce and changing consumer preferences. The industry is characterized by intense competition from both online retailers and traditional brick-and-mortar stores. Market trends include a shift towards digital solutions and services, as well as a focus on providing a seamless omnichannel experience. The ODP Corporation's focus on business solutions and digital workplace technology aligns with these trends, but it faces challenges in adapting its retail operations to the evolving landscape.

Who Are ODP's Key Customers?

• Small businesses requiring office supplies and services.
• Medium-sized businesses needing technology solutions and support.
• Enterprise businesses seeking comprehensive business solutions.
• Individual consumers purchasing office supplies and related products.

The most recent 12 insider filings for The ODP Corporation break down as 12 sales and 0 purchases. On net that is roughly 1.3M shares disposed (about $34.5M), a signal worth weighing alongside the fundamentals.

Quarterly Financial Performance: The ODP Corporation

Revenue for The ODP Corporation came in at $1.63B during Q3 FY2025, a 2.5% improvement versus the preceding quarter. The company recorded net income of $23.0M, with diluted EPS of $0.77. Quarter-over-quarter revenue has been mixed, typical for a small-cap company operating in Consumer Cyclical. Across the four most recent quarters, ODP averaged $-0.07 in diluted EPS.

ODP Valuation & Market Position

With a $843M market cap, The ODP Corporation sits in the small-cap segment of the market.

Return on equity for The ODP Corporation stands at -1.1%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -0.3%, showing how much profit it generates from its asset base. Its free cash flow yield is 14.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.91 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is -1.1%, the inverse of the P/E and a quick read on earnings relative to price.

The ODP Corporation's Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 2.05 places it in the grey zone, a middle ground that warrants monitoring.

The ODP Corporation has beaten Wall Street's EPS estimate in 4 of its last 8 reported quarters — more hits than misses. Reported results have landed about 2.7% above estimates on average.

Wall Street analysts project The ODP Corporation revenue of about $6.40B for fiscal 2026, with EPS near $2.83.

Company Profile

The ODP Corporation operates in the Specialty Retail industry within the Consumer Cyclical sector. It is headquartered in Boca Raton, US. The company is led by CEO Max W. Hood. ODP has traded publicly since 1988.

ODP Financials

ODP Latest News

What Investors Ask About The ODP Corporation (ODP) — Consumer Cyclical

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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