XEROX HOLDINGS CORP (XRX) Stock Fundamental Analysis
USA - NASDAQ:XRX - US98421M1062 - Common Stock
3.99 USD
+0.32 (+8.72%)
4 USD
+0.01 (+0.25%)
Taking everything into account, XRX scores 3 out of 10 in our fundamental rating. XRX was compared to 33 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 valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year XRX has reported negative net income.
In the past year XRX had a positive cash flow from operations.
XRX had negative earnings in 4 of the past 5 years.
XRX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
XRX has a worse Return On Assets (-16.18%) than 60.61% of its industry peers.
The Return On Equity of XRX (-107.49%) is worse than 63.64% 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 48.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for XRX is significantly below the industry average of 14.98%.
| 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
XRX has a Operating Margin (2.12%) which 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.
XRX's Gross Margin has declined in the last couple of years.
| 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
XRX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
XRX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, XRX has less shares outstanding
The debt/assets ratio for XRX is higher compared to a year ago.
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 comparable to the rest of the industry.
The Debt to FCF ratio of XRX is 13.05, which is on the high side as it means it would take XRX, 13.05 years of fcf income to pay off all of its debts.
XRX has a Debt to FCF ratio of 13.05. This is comparable to the rest of the industry: XRX outperforms 51.52% 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.
XRX has a worse Debt to Equity ratio (2.61) than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.61 | ||
| Debt/FCF | 13.05 | ||
| Altman-Z | 1.45 |
ROIC/WACC0.28
WACC5.73%
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.
XRX has a Current ratio (1.46) which is in line with its industry peers.
XRX has a Quick Ratio of 1.10. 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 Quick ratio, with a value of 1.10, XRX is in line with its industry, outperforming 57.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The earnings per share for XRX have decreased strongly by -107.26% in the last year.
XRX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -25.94% yearly.
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
Based on estimates for the next years, XRX will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.60% on average per year.
The Revenue is expected to decrease by -0.46% on average over the next years.
EPS Next Y-46.24%
EPS Next 2Y22.37%
EPS Next 3Y14.6%
EPS Next 5YN/A
Revenue Next Year8.72%
Revenue Next 2Y9.53%
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 2.78.
Based on the Price/Forward Earnings ratio, XRX is valued cheaply inside the industry as 93.94% of the companies are valued more expensively.
XRX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 2.78 |
4.2 Price Multiples
XRX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. XRX is cheaper than 84.85% of the companies in the same industry.
XRX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. XRX is cheaper than 96.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.66 | ||
| EV/EBITDA | 9.79 |
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 2Y22.37%
EPS Next 3Y14.6%
5. Dividend
5.1 Amount
XRX has a Yearly Dividend Yield of 2.51%.
In the last 3 months the price of XRX has falen by -25.70%. 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 1.85, XRX pays a better dividend. On top of this XRX pays more dividend than 93.94% of the companies listed in the same industry.
XRX's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
5.2 History
The dividend of XRX has a limited annual growth rate of 0.72%.
XRX has paid a dividend for at least 10 years, which is a reliable track record.
As XRX did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)0.72%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
XRX has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of XRX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-8.91%
EPS Next 2Y22.37%
EPS Next 3Y14.6%
3.99
+0.32 (+8.72%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners96.49%
Inst Owner Change32.86%
Ins Owners7.68%
Ins Owner Change14.76%
Market Cap502.06M
Analysts47.27
Price Target7.96 (99.5%)
Short Float %19.39%
Short Ratio5.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
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)-23.53%
PT rev (3m)-23.53%
EPS NQ rev (1m)-36.09%
EPS NQ rev (3m)-36.09%
EPS NY rev (1m)-32.09%
EPS NY rev (3m)-38.25%
Revenue NQ rev (1m)4.24%
Revenue NQ rev (3m)20.7%
Revenue NY rev (1m)8.32%
Revenue NY rev (3m)8.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 2.78 | ||
| P/S | 0.08 | ||
| P/FCF | 1.66 | ||
| P/OCF | 1.37 | ||
| P/B | 0.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.79 |
EPS(TTM)-0.09
EYN/A
EPS(NY)1.44
Fwd EY36.03%
FCF(TTM)2.4
FCFY60.15%
OCF(TTM)2.92
OCFY73.1%
SpS49.07
BVpS10.62
TBVpS-6.91
PEG (NY)N/A
PEG (5Y)N/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%
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 Turnover0.7
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
WACC5.73%
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-46.24%
EPS Next 2Y22.37%
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 Year8.72%
Revenue Next 2Y9.53%
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 3Y35.45%
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%