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Staples have a very strong balance sheet, with $800M in cash after subtracting long-term debt. Cash
generation is high and long-term debt is only 6% of total capitalization. Return on equity is respectable
at 19%, and has improved steadily over the last few years.

The firm is tweaking its retail strategy by opening smaller stores conducive to smaller markets and highly
urban environments.

Staples benefit from economies of scale in brand awareness, advertising and purchasing power,
and increasing margins that further increase their ability to compete on price.

Staples have been the best-in-class office supply superstore for quite some time. Staples also face
competition outside of the traditional office superstores. The rise of discount and online retailers
and the increasing importance of technology, services and delivery is changing the office products
competitive landscape. In this area Staples also competes with Wal-Mart, Best Buy, Amazon.com

Varied product lines Established network Clear segment leader

Comprehensive product and service offering

Most efficient supply chain among competitors

Dominant store locations, strong margins, and consistent

operating performance

SPLS brand offering brings higher margins and brand

awareness and loyalty

http://services.corporate-ir.net/SEC/Document.Service?
id=P3VybD1hSFIwY0RvdkwyRndhUzUwWlc1cmQybDZZWEprTG1OdmJTOWtiM2R1Ykc5aFpDNXdhSEEv
WVdOMGFXOXVQVkJFUmlacGNHRm5aVDA0TnpjM01qSTFKbk4xWW5OcFpEMDFOdz09JnR5cGU9MiZm
bj1TdGFwbGVzSW5jLnBkZg==

http://www.checkcapital.com/Research_Reports/SPLS_Profile_10_07.pdf

http://www.researchandmarkets.com/reports/584467/analysis_of_staples_inc.pdf

http://mmoore.ba.ttu.edu/ValuationReports/Spring2007/Staples-Spring2007.pdf

http://business.library.wisc.edu/resources/kavajecz/09%20Fall/staples_rep.pdf

http://csinvesting.org/wp-content/uploads/2012/08/staples-valuexvail-2012-adrian-mak.pdf

http://www.janney.com/File%20Library/Market%20View%20Daily/Feb19-2013.pdf

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Stpls1

  • 1. Staples have a very strong balance sheet, with $800M in cash after subtracting long-term debt. Cash generation is high and long-term debt is only 6% of total capitalization. Return on equity is respectable at 19%, and has improved steadily over the last few years. The firm is tweaking its retail strategy by opening smaller stores conducive to smaller markets and highly urban environments. Staples benefit from economies of scale in brand awareness, advertising and purchasing power, and increasing margins that further increase their ability to compete on price. Staples have been the best-in-class office supply superstore for quite some time. Staples also face competition outside of the traditional office superstores. The rise of discount and online retailers and the increasing importance of technology, services and delivery is changing the office products competitive landscape. In this area Staples also competes with Wal-Mart, Best Buy, Amazon.com Varied product lines Established network Clear segment leader Comprehensive product and service offering Most efficient supply chain among competitors Dominant store locations, strong margins, and consistent operating performance SPLS brand offering brings higher margins and brand awareness and loyalty http://services.corporate-ir.net/SEC/Document.Service? id=P3VybD1hSFIwY0RvdkwyRndhUzUwWlc1cmQybDZZWEprTG1OdmJTOWtiM2R1Ykc5aFpDNXdhSEEv WVdOMGFXOXVQVkJFUmlacGNHRm5aVDA0TnpjM01qSTFKbk4xWW5OcFpEMDFOdz09JnR5cGU9MiZm bj1TdGFwbGVzSW5jLnBkZg== http://www.checkcapital.com/Research_Reports/SPLS_Profile_10_07.pdf http://www.researchandmarkets.com/reports/584467/analysis_of_staples_inc.pdf http://mmoore.ba.ttu.edu/ValuationReports/Spring2007/Staples-Spring2007.pdf http://business.library.wisc.edu/resources/kavajecz/09%20Fall/staples_rep.pdf http://csinvesting.org/wp-content/uploads/2012/08/staples-valuexvail-2012-adrian-mak.pdf http://www.janney.com/File%20Library/Market%20View%20Daily/Feb19-2013.pdf