Recent News
On September 22, 2025, The ODP Corporation announced a definitive agreement to be acquired by an affiliate of Atlas Holdings in an all-cash transaction at $28.00 per share, representing a 34% premium to the September 19 closing price. On November 5, 2025 the company reiterated the transaction update and stated it expects the merger to close by year-end, noting customary regulatory and shareholder approvals and that it will not provide forward guidance while the merger remains pending.
Technical Analysis
ADX and Directional Indicators: ADX at 47.25 indicates a very-strong trend. DI+ at 32.52, decreasing, signals a loss of bullish directional pressure. DI- at 11.04, decreasing, signals reduced bearish pressure; the mixed DI moves suggest trend strength without a clear directional escalation, which heightens sensitivity to event risk tied to the pending transaction.
MACD: MACD at 0.26 sits below the signal line at 0.36 and the MACD trend shows decreasing momentum, which points to waning upward momentum despite price holding above key averages.
MRO: MRO at 13.88 (positive) indicates the price sits above the WMDST target and faces downward pressure toward that target, implying limited upside before mean-reversion pressure appears.
RSI: RSI at 66.27 with a dip & reversal indicates renewed relative-strength buying that keeps momentum biased upward in the near term, though not yet overbought.
Price Vs. Moving Averages & Volatility: Price closed at $27.94 above the 20-day average ($27.88), 50-day average ($27.45) and 200-day average ($19.79), while the 12-day EMA trend increases. Bollinger bands compress tightly around $27.9, reflecting low short-term volatility. The 42-day beta sits near 0.08, while the 52-week beta near 1.04 shows market-like sensitivity over the longer horizon.
Volume: Daily volume at 977,801 runs below the 10-day average of 1,176,160 and below the 50-day average of 1,216,482, suggesting lower conviction on recent moves; event-driven days tied to the take-private process likely will lift participation above recent averages.
Fundamental Analysis
Earnings and Profitability: GAAP EPS of $1.14 exceeded the $0.80 estimate by $0.34, a 42.5% surprise. Operating income/EBIT at $37,000,000 produces an EBIT margin of 2.277%, which sits well below the industry peer mean of 13.797% and the industry peer median of 14.423%. Quarter-over-quarter EBIT margin expanded by 351.79% while year-over-year EBIT margin declined by 59.87%, reflecting volatile margin dynamics tied to one-time items and cost actions.
Cash Flow and Free Cash Flow Yield: Operating cash flow reached $90,000,000 with free cash flow of $78,000,000, producing a free cash flow yield of 10.42%. That free cash flow yield sits above the industry peer mean of 1.075%, supporting the view that cash generation per market value looks favorable on a standalone basis. Free cash flow growth shows a year-over-year decline of 7.09% and a quarter-over-quarter decrease of 21.81%.
Balance Sheet and Leverage: Cash and short-term investments total $182,000,000 against total debt of $789,000,000. Debt-to-EBITDA reads 13.15x and debt-to-equity at 95.87%, while debt-to-assets stands at 24.06%. Interest coverage at 6.17x provides a buffer on current interest obligations, but elevated leverage relative to cash flow tightens flexibility absent continued cash conversion improvements.
Working Capital and Efficiency: Cash conversion cycle stands at 28.44 days versus an industry peer mean of 23.01 days. Asset turnover at 0.4865 sits above the industry peer mean of 0.3251, indicating relatively efficient use of assets to generate revenue despite the low gross and operating margins.
Valuation Metrics: Price-to-earnings at 21.80x and forward PE at 21.61x present conventional earnings multiples. Price-to-book at 0.91 sits below the industry peer mean of 4.13, and price-to-sales at 0.46 sits below the industry peer mean of 9.23. Enterprise multiple at 22.59x and EVR near 0.834 indicate a take-private valuation context. The current valuation as determined by WMDST ranks the stock as under-valued, driven primarily by strong free cash flow yield and discounted price-to-book relative to peer averages.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-05 |
| NEXT REPORT DATE: | 2026-02-04 |
| CASH FLOW | Begin Period Cash Flow | $ 182.0 M |
| Operating Cash Flow | $ 90.0 M | |
| Capital Expenditures | $ -12.00 M | |
| Change In Working Capital | $ 26.0 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 5.0 M | |
| End Period Cash Flow | $ 187.0 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 1.6 B | |
| Forward Revenue | $ 518.7 M | |
| COSTS | ||
| Cost Of Revenue | $ 1.3 B | |
| Depreciation | $ 23.0 M | |
| Depreciation and Amortization | $ 23.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 1.6 B | |
| PROFITABILITY | ||
| Gross Profit | $ 331.0 M | |
| EBITDA | $ 60.0 M | |
| EBIT | $ 37.0 M | |
| Operating Income | $ 38.0 M | |
| Interest Income | $ 3.0 M | |
| Interest Expense | $ 6.0 M | |
| Net Interest Income | $ -3.00 M | |
| Income Before Tax | $ 31.0 M | |
| Tax Provision | $ 8.0 M | |
| Tax Rate | 26.0 % | |
| Net Income | $ 23.0 M | |
| Net Income From Continuing Operations | $ 23.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.80 | |
| EPS Actual | $ 1.14 | |
| EPS Difference | $ 0.34 | |
| EPS Surprise | 42.5 % | |
| Forward EPS | $ 0.97 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 3.3 B | |
| Intangible Assets | $ 457.0 M | |
| Net Tangible Assets | $ 366.0 M | |
| Total Current Assets | $ 1.4 B | |
| Cash and Short-Term Investments | $ 182.0 M | |
| Cash | $ 182.0 M | |
| Net Receivables | $ 474.0 M | |
| Inventory | $ 699.0 M | |
| Long-Term Investments | $ 267.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 685.0 M | |
| Short-Term Debt | $ 7.0 M | |
| Total Current Liabilities | $ 1.5 B | |
| Net Debt | — | |
| Total Debt | $ 789.0 M | |
| Total Liabilities | $ 2.5 B | |
| EQUITY | ||
| Total Equity | $ 823.0 M | |
| Retained Earnings | $ -321.00 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 27.33 | |
| Shares Outstanding | 30.118 M | |
| Revenue Per-Share | $ 53.95 | |
| VALUATION | Market Capitalization | $ 748.5 M |
| Enterprise Value | $ 1.4 B | |
| Enterprise Multiple | 22.592 | |
| Enterprise Multiple QoQ | -37.08 % | |
| Enterprise Multiple YoY | 246.342 % | |
| Enterprise Multiple IPRWA | high: 180.924 mean: 62.365 median: 57.079 ODP: 22.592 low: -68.779 |
|
| EV/R | 0.834 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 3.984 | |
| Asset To Liability | 1.335 | |
| Debt To Capital | 0.489 | |
| Debt To Assets | 0.241 | |
| Debt To Assets QoQ | -12.756 % | |
| Debt To Assets YoY | 8778.967 % | |
| Debt To Assets IPRWA | high: 1.051 median: 0.516 mean: 0.482 ODP: 0.241 low: 0.086 |
|
| Debt To Equity | 0.959 | |
| Debt To Equity QoQ | -18.644 % | |
| Debt To Equity YoY | 8107.962 % | |
| Debt To Equity IPRWA | high: 4.701 mean: 1.31 median: 1.023 ODP: 0.959 low: -2.674 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 0.91 | |
| Price To Book QoQ | 27.562 % | |
| Price To Book YoY | -21.071 % | |
| Price To Book IPRWA | high: 10.417 mean: 4.13 median: 2.505 ODP: 0.91 low: -5.158 |
|
| Price To Earnings (P/E) | 21.801 | |
| Price To Earnings QoQ | -36.945 % | |
| Price To Earnings YoY | -51.032 % | |
| Price To Earnings IPRWA | high: 279.007 mean: 83.856 median: 82.476 ODP: 21.801 low: -89.111 |
|
| PE/G Ratio | 0.176 | |
| Price To Sales (P/S) | 0.461 | |
| Price To Sales QoQ | 28.724 % | |
| Price To Sales YoY | -16.874 % | |
| Price To Sales IPRWA | high: 18.293 mean: 9.229 median: 8.085 ODP: 0.461 low: 0.22 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 21.612 | |
| Forward PE/G | 0.175 | |
| Forward P/S | 1.443 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 147.417 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.487 | |
| Asset Turnover Ratio QoQ | 5.344 % | |
| Asset Turnover Ratio YoY | 0.367 % | |
| Asset Turnover Ratio IPRWA | high: 0.661 ODP: 0.487 median: 0.329 mean: 0.325 low: 0.084 |
|
| Receivables Turnover | 3.48 | |
| Receivables Turnover Ratio QoQ | 1.911 % | |
| Receivables Turnover Ratio YoY | -0.791 % | |
| Receivables Turnover Ratio IPRWA | high: 104.964 mean: 13.781 median: 9.92 ODP: 3.48 low: 0.289 |
|
| Inventory Turnover | 1.792 | |
| Inventory Turnover Ratio QoQ | 4.992 % | |
| Inventory Turnover Ratio YoY | -2.667 % | |
| Inventory Turnover Ratio IPRWA | high: 2.29 ODP: 1.792 mean: 0.76 median: 0.658 low: 0.197 |
|
| Days Sales Outstanding (DSO) | 26.224 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 28.441 | |
| Cash Conversion Cycle Days QoQ | -5.614 % | |
| Cash Conversion Cycle Days YoY | 11.306 % | |
| Cash Conversion Cycle Days IPRWA | high: 351.932 median: 41.536 ODP: 28.441 mean: 23.011 low: -107.374 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | -11.949 | |
| CapEx To Revenue | -0.007 | |
| CapEx To Depreciation | -0.522 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 964.0 M | |
| Net Invested Capital | $ 971.0 M | |
| Invested Capital | $ 971.0 M | |
| Net Tangible Assets | $ 366.0 M | |
| Net Working Capital | $ -136.00 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.119 | |
| Current Ratio | 0.911 | |
| Current Ratio QoQ | -2.986 % | |
| Current Ratio YoY | -1.266 % | |
| Current Ratio IPRWA | high: 4.244 median: 1.26 mean: 1.225 ODP: 0.911 low: 0.071 |
|
| Quick Ratio | 0.453 | |
| Quick Ratio QoQ | 0.678 % | |
| Quick Ratio YoY | -2.899 % | |
| Quick Ratio IPRWA | high: 2.26 ODP: 0.453 mean: 0.407 median: 0.211 low: 0.054 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 13.15 | |
| Cost Of Debt | 0.514 % | |
| Interest Coverage Ratio | 6.167 | |
| Interest Coverage Ratio QoQ | 362.501 % | |
| Interest Coverage Ratio YoY | -63.366 % | |
| Interest Coverage Ratio IPRWA | high: 52.0 median: 13.87 mean: 13.868 ODP: 6.167 low: -17.385 |
|
| Operating Cash Flow Ratio | 0.043 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 49.415 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -3.587 % | |
| Revenue Growth | 2.459 % | |
| Revenue Growth QoQ | -136.972 % | |
| Revenue Growth YoY | -32.979 % | |
| Revenue Growth IPRWA | high: 45.625 % mean: 10.262 % median: 4.802 % ODP: 2.459 % low: -16.233 % |
|
| Earnings Growth | 123.529 % | |
| Earnings Growth QoQ | -338.073 % | |
| Earnings Growth YoY | 361.17 % | |
| Earnings Growth IPRWA | high: 285.714 % ODP: 123.529 % median: 8.108 % mean: 3.429 % low: -300.0 % |
|
| MARGINS | ||
| Gross Margin | 20.369 % | |
| Gross Margin QoQ | 4.211 % | |
| Gross Margin YoY | -0.391 % | |
| Gross Margin IPRWA | high: 97.069 % median: 44.682 % mean: 43.013 % ODP: 20.369 % low: 10.882 % |
|
| EBIT Margin | 2.277 % | |
| EBIT Margin QoQ | 351.786 % | |
| EBIT Margin YoY | -59.87 % | |
| EBIT Margin IPRWA | high: 20.894 % median: 14.423 % mean: 13.797 % ODP: 2.277 % low: -3.927 % |
|
| Return On Sales (ROS) | 2.338 % | |
| Return On Sales QoQ | 48.35 % | |
| Return On Sales YoY | -58.795 % | |
| Return On Sales IPRWA | high: 20.742 % median: 14.013 % mean: 13.663 % ODP: 2.338 % low: -3.927 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 78.0 M | |
| Free Cash Flow Yield | 10.42 % | |
| Free Cash Flow Yield QoQ | 1378.014 % | |
| Free Cash Flow Yield YoY | 93.933 % | |
| Free Cash Flow Yield IPRWA | ODP: 10.42 % high: 8.71 % mean: 1.075 % median: 0.763 % low: -13.337 % |
|
| Free Cash Growth | 1850.0 % | |
| Free Cash Growth QoQ | -2181.247 % | |
| Free Cash Growth YoY | -708.861 % | |
| Free Cash Growth IPRWA | ODP: 1850.0 % high: 535.911 % median: -33.254 % mean: -59.233 % low: -670.853 % |
|
| Free Cash To Net Income | 3.391 | |
| Cash Flow Margin | 4.062 % | |
| Cash Flow To Earnings | 2.87 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.02 | |
| Return On Assets (ROA) | 0.689 % | |
| Return On Assets QoQ | 39.192 % | |
| Return On Assets YoY | -56.392 % | |
| Return On Assets IPRWA | high: 4.767 % median: 4.135 % mean: 3.109 % ODP: 0.689 % low: -1.679 % |
|
| Return On Capital Employed (ROCE) | 2.112 % | |
| Return On Equity (ROE) | 0.028 | |
| Return On Equity QoQ | 30.852 % | |
| Return On Equity YoY | -58.751 % | |
| Return On Equity IPRWA | high: 0.115 median: 0.063 mean: 0.062 ODP: 0.028 low: -0.041 |
|
| DuPont ROE | 2.841 % | |
| Return On Invested Capital (ROIC) | 2.82 % | |
| Return On Invested Capital QoQ | 364.58 % | |
| Return On Invested Capital YoY | -106.631 % | |
| Return On Invested Capital IPRWA | high: 17.9 % mean: 9.456 % median: 9.135 % ODP: 2.82 % low: -2.348 % |
|