Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, office-supply retailer OfficeMax (NYSE: OMX ) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at OfficeMax's business and see what CAPS investors are saying about the stock right now.
OfficeMax facts
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Headquarters (Founded)
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Naperville, Ill. (1913)
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Market Cap
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$839.2 million
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Industry
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Specialty stores
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Trailing-12-Month Revenue
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$7.28 billion
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Management
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CEO Sammy Duncan (since April 2005)
CFO Bruce Besanko (since February 2009)
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Return on Equity (Average, Past 3 Years)
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(60.4%)
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Cash/Debt
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$547 million / $1.8 billion
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1-Year Return
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87.7%
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Competitors
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Staples (Nasdaq: SPLS )
Office Depot (NYSE: ODP )
Wal-Mart Stores (NYSE: WMT )
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CAPS Members Bearish on OMX Also Bearish on
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Ford Motor (NYSE: F )
Palm (Nasdaq: PALM )
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CAPS Members Bullish on OMX Also Bullish on
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Citigroup (NYSE: C )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 43% of the 237 members who have rated OfficeMax believe the stock will underperform the S&P 500 going forward. These bears include All-Star BrianMav, who is ranked in the top 15% of our community, and compfreak999.
Earlier this year, BrianMav warned that the stock's potential seems to be stapled down:
There isn't enough room in this sector for three huge companies, and from my experience with all of them, I think Staples is going to win. It's going to be a long and slow decline, peppered with short-term inversions, but ultimately Office Max and Office Depot are going to zero and Staples will stand alone.
In a pitch from three weeks ago, compfreak999 worried that OfficeMax seemed to be giving away the store:
I've been looking at OfficeMax's weekly ads and it's a bit concerning how they're borrowing from the future. Take for example their printer deals. [T]hey're offering cashback in the next quarter for a printer purchased in this quarter (a large cashback at that). It may sound like a great way to entice customer, but at what cost? It'll be interesting to see how [OfficeMax] does. I for one believe that [Office Depot] and [Staples] will be better positioned down the road.
What do you think about OfficeMax, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!
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