ODP

ODP Corporation (The)

Consumer, Event Driven/Special Sit


Presented:09/14/2021
Price:$41.66
Cap:$2.22B
Current Price:$30.44
Cap:$1.02B

Presented

Date09/14/2021
Price$41.66
Market Cap$2.22B
Ent Value$3.15B
P/E Ratio58.35x
Book Value$34.25
Div Yield0%
Shares O/S53.33M
Ave Daily Vol334,540
Short Int11.14%

Current

Price$30.44
Market Cap$1.02B
The ODP Corp. operates as a holding company, which engages in the provision of business services, products, and digital workplace technology solutions. It offers tools and resources to its clients to start, grow, and run their business. It operates through the following brands: Office Depot, OfficeMax, CompuCom, and Grabnd&Toy. The company was founded on June 9, 2020 and is headquartered in Boca Raton, FL.

Publicly traded companies mentioned herein: Applied Industrial Technologies Inc (AIT), Amazon.com Inc (AMZN), MSC Industrial Direct Co Inc (MSM), ODP Corp/The (ODP), WW Grainger Inc (GWW)

Highlights

The presenter is long shares of The ODP Corp (ODP), seeing it as an undervalued SOTP story with a number of tangible catalysts following the announced spin-off of its B2B solutions business (NewCo). ODP is better known for its retail business through the Office Depot and OfficeMax brands, but he sees the opportunity to buy ODP’s world class B2B business at 2x EBITDA compared to comps (MSM, GWW, AIT) that trade at 12x - 15x EBITDA. Additionally, he highlights a larger growth opportunity for NewCo that is not currently realized. ODP’s stock trades at ~$42 per share, and he thinks shares could appreciate to $60 in the near term and $100+ within the next 12 - 18 months.

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Idea Discussion

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