ODP Corp. Gains Momentum with Proposed Office Depot Separation and Varis Sale

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ODP ($NASDAQ:ODP) Corp. saw its stock gain for a second day as a holder proposed the separation of Office Depot and the sale of Varis. The company operates through two segments: its core Office Depot segment, which consists of retail stores, contract, and online sales, and the OfficeMax segment. The investor noted that ODP Corp.’s stock had underperformed its peers in the industry due to poor management decisions and lack of focus on its core market. Starboard believes that by separating the Office Depot segment from the rest of the company, ODP Corp. can increase its stock value and improve profitability.

In addition, Starboard proposed that ODP Corp. sell off its Varis unit, which provides installation services for businesses across North America, as it is not a core part of the company’s operations. This would help ODP Corp. reduce costs and increase profitability. Investors are hopeful that this separation and sale will allow ODP Corp. to focus on its core market and improve profitability in the long run.

Price History

This news was well-received by investors, and the stock opened at $53.4 and closed at $54.1, a 1.4% increase from the previous closing price of $53.3. Investors are optimistic about the changes proposed by ODP CORPORATION and are looking ahead to further developments in the company. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Odp Corporation. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Odp Corporation. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Odp Corporation. More…

Key Ratios Snapshot

Some of the financial key ratios for Odp Corporation are shown below. More…

Analysis

As an analysis conducted by GoodWhale, ODP CORPORATION‘s fundamentals have been examined. According to our Star Chart, ODP CORPORATION is strong in asset, medium in profitability and weak in dividend and growth. We have classified ODP CORPORATION as an ‘elephant’, a type of company that has a lot of assets after liabilities have been deducted off. Given this, investors who are looking for stability and asset-rich companies may find ODP CORPORATION an attractive option. Additionally, ODP CORPORATION has a high health score of 8/10 when it comes to cashflows and debt, indicating that it is capable of funding future operations and paying off debt. More…

Peers

The company operates duty-free stores at major airports and tourist destinations in these countries. The company’s main competitors are China Tourism Group Duty Free Corp Ltd, JALUX Inc, and Rito Group Corp.

– China Tourism Group Duty Free Corp Ltd ($SHSE:601888)

China Tourism Group Duty Free Corp Ltd is a state-owned enterprise that operates duty-free shops in China. It is the largest duty-free retailer in China with over 200 stores across the country. The company offers a wide range of products including cosmetics, fashion, accessories, and food. It also operates an online duty-free platform.

Summary

ODP Corporation has seen a two-day increase in stock value after a holding company proposed the separation of Office Depot and the sale of their subsidiary, Varis. Analysts are optimistic about the potential effects of this move, as it could allow ODP to divest themselves from their underperforming retail operations and focus on their business-to-business services. Furthermore, shareholders could benefit from the potential sale of Varis, while Office Depot can be released into a more profitable environment better suited to its needs. Investors are encouraged to monitor the situation for any further developments that might lead to further gains in ODP Corporation’s stock value.