XEROX HOLDINGS CORP (XRX) Stock Fundamental Analysis
NASDAQ:XRX - Nasdaq - US98421M1062 - Common Stock - Currency: USD
XRX gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 32 industry peers in the Technology Hardware, Storage & Peripherals industry. XRX may be in some trouble as it scores bad on both profitability and health. XRX has a bad growth rate and is valued cheaply. XRX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year XRX was profitable.
XRX had a positive operating cash flow in the past year.
XRX had negative earnings in 4 of the past 5 years.
Each year in the past 5 years XRX had a positive operating cash flow.
1.2 Ratios
XRX has a worse Return On Assets (-15.96%) than 65.63% of its industry peers.
The Return On Equity of XRX (-103.49%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 2.19%, XRX is in line with its industry, outperforming 50.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for XRX is significantly below the industry average of 15.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -15.96% | ||
| ROE | -103.49% | ||
| ROIC | 2.19% |
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
With a Operating Margin value of 2.56%, XRX perfoms like the industry average, outperforming 46.88% of the companies in the same industry.
XRX's Operating Margin has declined in the last couple of years.
The Gross Margin of XRX (31.51%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of XRX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.56% | ||
| PM (TTM) | N/A | ||
| GM | 31.51% |
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
XRX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for XRX is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.49, we must say that XRX is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.49, XRX is in line with its industry, outperforming 43.75% of the companies in the same industry.
XRX has a debt to FCF ratio of 7.28. This is a slightly negative value and a sign of low solvency as XRX would need 7.28 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 7.28, XRX is doing good in the industry, outperforming 71.88% of the companies in the same industry.
XRX has a Debt/Equity ratio of 2.18. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.18, XRX is doing worse than 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.18 | ||
| Debt/FCF | 7.28 | ||
| Altman-Z | 1.49 |
ROIC/WACC0.38
WACC5.79%
2.3 Liquidity
XRX has a Current Ratio of 1.12. This is a normal value and indicates that XRX is financially healthy and should not expect problems in meeting its short term obligations.
XRX has a worse Current ratio (1.12) than 68.75% of its industry peers.
XRX has a Quick Ratio of 1.12. This is a bad value and indicates that XRX is not financially healthy enough and could expect problems in meeting its short term obligations.
XRX has a Quick ratio of 0.86. This is in the lower half of the industry: XRX underperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
XRX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -47.25%.
The earnings per share for XRX have been decreasing by -25.94% on average. This is quite bad
The Revenue has decreased by -9.66% in the past year.
XRX shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.26% yearly.
EPS 1Y (TTM)-47.25%
EPS 3Y-14.01%
EPS 5Y-25.94%
EPS Q2Q%-16.28%
Revenue 1Y (TTM)-9.66%
Revenue growth 3Y-4.03%
Revenue growth 5Y-7.26%
Sales Q2Q%-8.61%
3.2 Future
The Earnings Per Share is expected to grow by 10.72% on average over the next years. This is quite good.
XRX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.46% yearly.
EPS Next Y4.42%
EPS Next 2Y26.04%
EPS Next 3Y10.72%
EPS Next 5YN/A
Revenue Next Year1.92%
Revenue Next 2Y8.11%
Revenue Next 3Y-1.26%
Revenue Next 5Y-0.46%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
XRX is valuated cheaply with a Price/Earnings ratio of 4.47.
Compared to the rest of the industry, the Price/Earnings ratio of XRX indicates a rather cheap valuation: XRX is cheaper than 100.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.78. XRX is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 4.28 indicates a rather cheap valuation of XRX.
XRX's Price/Forward Earnings ratio is rather cheap when compared to the industry. XRX is cheaper than 90.63% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, XRX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.47 | ||
| Fwd PE | 4.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, XRX is valued a bit cheaper than 75.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, XRX is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.16 | ||
| EV/EBITDA | 7.76 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.01
PEG (5Y)N/A
EPS Next 2Y26.04%
EPS Next 3Y10.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.02%, XRX is a good candidate for dividend investing.
In the last 3 months the price of XRX has falen by -55.89%. 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 3.55, XRX pays a better dividend. On top of this XRX pays more dividend than 100.00% of the companies listed in the same industry.
XRX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.02% |
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-10.56%
EPS Next 2Y26.04%
EPS Next 3Y10.72%
NASDAQ:XRX (4/28/2025, 1:13:07 PM)
4.295
+0.03 (+0.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners100.72%
Inst Owner Change-0.08%
Ins Owners7.52%
Ins Owner Change-1.21%
Market Cap540.23M
Analysts50
Price Target11.68 (171.94%)
Short Float %19.45%
Short Ratio4.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.02% |
Yearly Dividend1.14
Dividend Growth(5Y)0.72%
DP-10.56%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-41.8%
Min EPS beat(2)-51.27%
Max EPS beat(2)-32.32%
EPS beat(4)0
Avg EPS beat(4)-49.98%
Min EPS beat(4)-83.19%
Max EPS beat(4)-32.32%
EPS beat(8)3
Avg EPS beat(8)4.57%
EPS beat(12)5
Avg EPS beat(12)-6.14%
EPS beat(16)8
Avg EPS beat(16)-2.86%
Revenue beat(2)1
Avg Revenue beat(2)-2.68%
Min Revenue beat(2)-7%
Max Revenue beat(2)1.64%
Revenue beat(4)1
Avg Revenue beat(4)-2.69%
Min Revenue beat(4)-7%
Max Revenue beat(4)1.64%
Revenue beat(8)1
Avg Revenue beat(8)-2.5%
Revenue beat(12)3
Avg Revenue beat(12)-1.75%
Revenue beat(16)5
Avg Revenue beat(16)-1.31%
PT rev (1m)11.18%
PT rev (3m)47.81%
EPS NQ rev (1m)-125.01%
EPS NQ rev (3m)-103.25%
EPS NY rev (1m)-7.67%
EPS NY rev (3m)-18.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.33%
Revenue NY rev (1m)-0.42%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.47 | ||
| Fwd PE | 4.28 | ||
| P/S | 0.09 | ||
| P/FCF | 1.16 | ||
| P/OCF | 1.06 | ||
| P/B | 0.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.76 |
EPS(TTM)0.96
EY22.35%
EPS(NY)1
Fwd EY23.34%
FCF(TTM)3.71
FCFY86.45%
OCF(TTM)4.06
OCFY94.59%
SpS49.46
BVpS10.26
TBVpS-7.02
PEG (NY)1.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -15.96% | ||
| ROE | -103.49% | ||
| ROCE | 2.77% | ||
| ROIC | 2.19% | ||
| ROICexc | 2.43% | ||
| ROICexgc | 4.19% | ||
| OM | 2.56% | ||
| PM (TTM) | N/A | ||
| GM | 31.51% | ||
| FCFM | 7.51% |
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%
ROICexcg growth 3Y-8.95%
ROICexcg 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 Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.18 | ||
| Debt/FCF | 7.28 | ||
| Debt/EBITDA | 6.5 | ||
| Cap/Depr | 16.06% | ||
| Cap/Sales | 0.71% | ||
| Interest Coverage | 0.71 | ||
| Cash Conversion | 118.01% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 1.49 |
F-Score4
WACC5.79%
ROIC/WACC0.38
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)-47.25%
EPS 3Y-14.01%
EPS 5Y-25.94%
EPS Q2Q%-16.28%
EPS Next Y4.42%
EPS Next 2Y26.04%
EPS Next 3Y10.72%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.66%
Revenue growth 3Y-4.03%
Revenue growth 5Y-7.26%
Sales Q2Q%-8.61%
Revenue Next Year1.92%
Revenue Next 2Y8.11%
Revenue Next 3Y-1.26%
Revenue Next 5Y-0.46%
EBIT growth 1Y-54.05%
EBIT growth 3Y-23.42%
EBIT growth 5Y-32.65%
EBIT Next Year67.07%
EBIT Next 3Y23.66%
EBIT Next 5Y20.31%
FCF growth 1Y-28.04%
FCF growth 3Y-5.93%
FCF growth 5Y-18.11%
OCF growth 1Y-25.51%
OCF growth 3Y-6.69%
OCF growth 5Y-17.45%