Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, office-supply retailer Office Depot
With that in mind, let's take a closer look at Office Depot's business and see what CAPS investors are saying about the stock right now.
Office Depot facts
Headquarters (founded) | Boca Raton, Fla. (1986) |
Market Cap | $459.1 million |
Industry | Specialty stores |
Trailing-12-Month Revenue | $11.4 billion |
Management | Chairman/CEO Neil Austrian CFO Michael Newman |
Return on Equity (average, past 3 years) | (10.4%) |
Cash/Debt | $488.8 million / $678.3 million |
Competitors |
OfficeMax Staples Wal-Mart |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 21% of the 617 members who have rated Office Depot believe the stock will underperform the S&P 500 going forward.
Just yesterday, one of those Fools, Kentexacan, succinctly summed up the Office Depot bear case for our community:
This is one of those dead business model shorts (Blockbuster comes to mind) that you could see coming from a mile away and. I kick myself for missing out on this one in real life. ...
Yes they are trading for near their cash value. But they are burning through cash at an incredible rate. ...
Advertising is theoretically supposed to drive revenue. I am not seeing this NASCAR sponsorship equating to driving the revenue line. Take a look at the sales numbers if you so desire.
Overall this is a dead long term business model. [A]s Bob Dylan Said "the times are a changing"
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Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.