XEROX HOLDINGS CORP (XRX) Stock Fundamental Analysis
USA - NASDAQ:XRX - US98421M1062 - Common Stock
3.58 USD
+0.1 (+2.87%)
3.56 USD
-0.02 (-0.56%)
We assign a fundamental rating of 3 out of 10 to XRX. XRX was compared to 34 industry peers in the Technology Hardware, Storage & Peripherals industry. Both the profitability and financial health of XRX have multiple concerns. XRX has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
XRX had negative earnings in the past year.
XRX had a positive operating cash flow in the past year.
In the past 5 years XRX reported 4 times negative net income.
Each year in the past 5 years XRX had a positive operating cash flow.
1.2 Ratios
XRX has a Return On Assets of -16.18%. This is comparable to the rest of the industry: XRX outperforms 41.18% of its industry peers.
XRX has a Return On Equity of -107.49%. This is in the lower half of the industry: XRX underperforms 61.76% of its industry peers.
XRX's Return On Invested Capital of 1.60% is in line compared to the rest of the industry. XRX outperforms 50.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for XRX is significantly below the industry average of 14.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -16.18% | ||
| ROE | -107.49% | ||
| ROIC | 1.6% |
ROA(3y)-6.33%
ROA(5y)-4.27%
ROE(3y)-37.8%
ROE(5y)-24.09%
ROIC(3y)2.67%
ROIC(5y)2.81%
1.3 Margins
The Operating Margin of XRX (2.12%) is comparable to the rest of the industry.
XRX's Operating Margin has declined in the last couple of years.
XRX has a Gross Margin (30.35%) which is in line with its industry peers.
In the last couple of years the Gross Margin of XRX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.12% | ||
| PM (TTM) | N/A | ||
| GM | 30.35% |
OM growth 3Y-20.2%
OM growth 5Y-27.38%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.91%
GM growth 5Y-4.79%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so XRX is destroying value.
Compared to 1 year ago, XRX has more shares outstanding
The number of shares outstanding for XRX has been reduced compared to 5 years ago.
Compared to 1 year ago, XRX has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.45, we must say that XRX is in the distress zone and has some risk of bankruptcy.
XRX has a Altman-Z score (1.45) which is in line with its industry peers.
XRX has a debt to FCF ratio of 13.05. This is a negative value and a sign of low solvency as XRX would need 13.05 years to pay back of all of its debts.
XRX's Debt to FCF ratio of 13.05 is in line compared to the rest of the industry. XRX outperforms 52.94% of its industry peers.
XRX has a Debt/Equity ratio of 2.61. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.61, XRX is not doing good in the industry: 73.53% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.61 | ||
| Debt/FCF | 13.05 | ||
| Altman-Z | 1.45 |
ROIC/WACC0.28
WACC5.68%
2.3 Liquidity
XRX has a Current Ratio of 1.46. This is a normal value and indicates that XRX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.46, XRX is in line with its industry, outperforming 52.94% of the companies in the same industry.
A Quick Ratio of 1.10 indicates that XRX should not have too much problems paying its short term obligations.
The Quick ratio of XRX (1.10) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
XRX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -107.26%.
The earnings per share for XRX have been decreasing by -25.94% on average. This is quite bad
XRX shows a decrease in Revenue. In the last year, the revenue decreased by -4.97%.
Measured over the past years, XRX shows a decrease in Revenue. The Revenue has been decreasing by -7.26% on average per year.
EPS 1Y (TTM)-107.26%
EPS 3Y-14.01%
EPS 5Y-25.94%
EPS Q2Q%-320.69%
Revenue 1Y (TTM)-4.97%
Revenue growth 3Y-4.03%
Revenue growth 5Y-7.26%
Sales Q2Q%-0.13%
3.2 Future
The Earnings Per Share is expected to grow by 14.60% on average over the next years. This is quite good.
The Revenue is expected to decrease by -0.46% on average over the next years.
EPS Next Y-77.7%
EPS Next 2Y22.66%
EPS Next 3Y14.6%
EPS Next 5YN/A
Revenue Next Year12.74%
Revenue Next 2Y10.51%
Revenue Next 3Y6.25%
Revenue Next 5Y-0.46%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
XRX reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
XRX is valuated cheaply with a Price/Forward Earnings ratio of 2.48.
XRX's Price/Forward Earnings ratio is rather cheap when compared to the industry. XRX is cheaper than 94.12% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of XRX to the average of the S&P500 Index (22.99), we can say XRX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 2.48 |
4.2 Price Multiples
88.24% of the companies in the same industry are more expensive than XRX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, XRX is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.49 | ||
| EV/EBITDA | 9.76 |
4.3 Compensation for Growth
A more expensive valuation may be justified as XRX's earnings are expected to grow with 14.60% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y22.66%
EPS Next 3Y14.6%
5. Dividend
5.1 Amount
XRX has a Yearly Dividend Yield of 3.13%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of XRX has falen by -41.12%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.86, XRX pays a better dividend. On top of this XRX pays more dividend than 97.06% of the companies listed in the same industry.
XRX's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
5.2 History
The dividend of XRX has a limited annual growth rate of 0.72%.
XRX has been paying a dividend for at least 10 years, so it has a reliable track record.
XRX has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)0.72%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
The earnings of XRX are negative and hence is the payout ratio. XRX will probably not be able to sustain this dividend level.
The dividend of XRX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-8.91%
EPS Next 2Y22.66%
EPS Next 3Y14.6%
3.58
+0.1 (+2.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners99.89%
Inst Owner Change-0.86%
Ins Owners7.73%
Ins Owner Change14.76%
Market Cap450.47M
Revenue(TTM)6.17B
Net Income(TTM)-1436000000
Analysts47.27
Price Target7.96 (122.35%)
Short Float %17.99%
Short Ratio4.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
Yearly Dividend1.14
Dividend Growth(5Y)0.72%
DP-8.91%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-495.05%
Min EPS beat(2)-892.08%
Max EPS beat(2)-98.02%
EPS beat(4)0
Avg EPS beat(4)-268.42%
Min EPS beat(4)-892.08%
Max EPS beat(4)-32.32%
EPS beat(8)1
Avg EPS beat(8)-147.42%
EPS beat(12)4
Avg EPS beat(12)-77.28%
EPS beat(16)7
Avg EPS beat(16)-65.19%
Revenue beat(2)1
Avg Revenue beat(2)-1.37%
Min Revenue beat(2)-3.7%
Max Revenue beat(2)0.96%
Revenue beat(4)2
Avg Revenue beat(4)-2.03%
Min Revenue beat(4)-7%
Max Revenue beat(4)1.64%
Revenue beat(8)2
Avg Revenue beat(8)-2.53%
Revenue beat(12)3
Avg Revenue beat(12)-1.95%
Revenue beat(16)4
Avg Revenue beat(16)-1.9%
PT rev (1m)0%
PT rev (3m)-23.53%
EPS NQ rev (1m)-36.73%
EPS NQ rev (3m)-59.57%
EPS NY rev (1m)-58.51%
EPS NY rev (3m)-71.83%
Revenue NQ rev (1m)7.19%
Revenue NQ rev (3m)29.39%
Revenue NY rev (1m)3.69%
Revenue NY rev (3m)12.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 2.48 | ||
| P/S | 0.07 | ||
| P/FCF | 1.49 | ||
| P/OCF | 1.23 | ||
| P/B | 0.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.76 |
EPS(TTM)-0.09
EYN/A
EPS(NY)1.44
Fwd EY40.34%
FCF(TTM)2.4
FCFY67.04%
OCF(TTM)2.92
OCFY81.47%
SpS49.07
BVpS10.62
TBVpS-6.91
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -16.18% | ||
| ROE | -107.49% | ||
| ROCE | 2.03% | ||
| ROIC | 1.6% | ||
| ROICexc | 1.73% | ||
| ROICexgc | 2.73% | ||
| OM | 2.12% | ||
| PM (TTM) | N/A | ||
| GM | 30.35% | ||
| FCFM | 4.89% |
ROA(3y)-6.33%
ROA(5y)-4.27%
ROE(3y)-37.8%
ROE(5y)-24.09%
ROIC(3y)2.67%
ROIC(5y)2.81%
ROICexc(3y)2.95%
ROICexc(5y)3.28%
ROICexgc(3y)5.26%
ROICexgc(5y)5.88%
ROCE(3y)3.38%
ROCE(5y)3.56%
ROICexgc growth 3Y-8.95%
ROICexgc growth 5Y-26.16%
ROICexc growth 3Y-9.42%
ROICexc growth 5Y-24.96%
OM growth 3Y-20.2%
OM growth 5Y-27.38%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.91%
GM growth 5Y-4.79%
F-Score4
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.61 | ||
| Debt/FCF | 13.05 | ||
| Debt/EBITDA | 8.62 | ||
| Cap/Depr | 23.81% | ||
| Cap/Sales | 1.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 90.84% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 1.45 |
F-Score4
WACC5.68%
ROIC/WACC0.28
Cap/Depr(3y)17.3%
Cap/Depr(5y)18.56%
Cap/Sales(3y)0.68%
Cap/Sales(5y)0.81%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-107.26%
EPS 3Y-14.01%
EPS 5Y-25.94%
EPS Q2Q%-320.69%
EPS Next Y-77.7%
EPS Next 2Y22.66%
EPS Next 3Y14.6%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.97%
Revenue growth 3Y-4.03%
Revenue growth 5Y-7.26%
Sales Q2Q%-0.13%
Revenue Next Year12.74%
Revenue Next 2Y10.51%
Revenue Next 3Y6.25%
Revenue Next 5Y-0.46%
EBIT growth 1Y-33.16%
EBIT growth 3Y-23.42%
EBIT growth 5Y-32.65%
EBIT Next Year77.35%
EBIT Next 3Y38.67%
EBIT Next 5Y20.31%
FCF growth 1Y-1.95%
FCF growth 3Y-5.93%
FCF growth 5Y-18.11%
OCF growth 1Y4.56%
OCF growth 3Y-6.69%
OCF growth 5Y-17.45%
XEROX HOLDINGS CORP / XRX FAQ
What is the ChartMill fundamental rating of XEROX HOLDINGS CORP (XRX) stock?
ChartMill assigns a fundamental rating of 3 / 10 to XRX.
What is the valuation status for XRX stock?
ChartMill assigns a valuation rating of 5 / 10 to XEROX HOLDINGS CORP (XRX). This can be considered as Fairly Valued.
What is the profitability of XRX stock?
XEROX HOLDINGS CORP (XRX) has a profitability rating of 2 / 10.
Can you provide the financial health for XRX stock?
The financial health rating of XEROX HOLDINGS CORP (XRX) is 3 / 10.
Can you provide the dividend sustainability for XRX stock?
The dividend rating of XEROX HOLDINGS CORP (XRX) is 6 / 10 and the dividend payout ratio is -8.91%.