XEROX HOLDINGS CORP (XRX) Stock Fundamental Analysis
USA - NASDAQ:XRX - US98421M1062 - Common Stock
3.06 USD
+0.05 (+1.66%)
3.0509 USD
-0.01 (-0.3%)
We assign a fundamental rating of 3 out of 10 to XRX. XRX was compared to 35 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 is valued correctly, 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.
In the past 5 years XRX always reported a positive cash flow from operatings.
1.2 Ratios
XRX has a Return On Assets (-9.84%) which is comparable to the rest of the industry.
The Return On Equity of XRX (-171.16%) is worse than 62.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.84% | ||
| ROE | -171.16% | ||
| ROIC | N/A |
ROA(3y)-6.33%
ROA(5y)-4.27%
ROE(3y)-37.8%
ROE(5y)-24.09%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
XRX's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 27.61%, XRX is in line with its industry, outperforming 48.57% of the companies in the same industry.
XRX's Gross Margin has declined in the last couple of years.
XRX does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 27.61% |
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 does not have a ROIC to compare to the WACC, probably because it is not profitable.
XRX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, XRX has less shares outstanding
Compared to 1 year ago, XRX has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.05, we must say that XRX is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.05, XRX perfoms like the industry average, outperforming 48.57% of the companies in the same industry.
XRX has a debt to FCF ratio of 13.52. This is a negative value and a sign of low solvency as XRX would need 13.52 years to pay back of all of its debts.
XRX's Debt to FCF ratio of 13.52 is in line compared to the rest of the industry. XRX outperforms 54.29% of its industry peers.
A Debt/Equity ratio of 7.00 is on the high side and indicates that XRX has dependencies on debt financing.
XRX's Debt to Equity ratio of 7.00 is on the low side compared to the rest of the industry. XRX is outperformed by 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7 | ||
| Debt/FCF | 13.52 | ||
| Altman-Z | 1.05 |
ROIC/WACCN/A
WACC5.64%
2.3 Liquidity
XRX has a Current 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.
XRX has a worse Current ratio (1.10) than 62.86% of its industry peers.
A Quick Ratio of 0.77 indicates that XRX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.77, XRX is in line with its industry, outperforming 48.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
XRX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -113.59%.
Measured over the past years, XRX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -25.94% on average per year.
Looking at the last year, XRX shows a small growth in Revenue. The Revenue has grown by 3.67% in the last year.
The Revenue has been decreasing by -7.26% on average over the past years.
EPS 1Y (TTM)-113.59%
EPS 3Y-14.01%
EPS 5Y-25.94%
EPS Q2Q%-20%
Revenue 1Y (TTM)3.67%
Revenue growth 3Y-4.03%
Revenue growth 5Y-7.26%
Sales Q2Q%28.34%
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings Ratio is negative for XRX. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 2.12, the valuation of XRX can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of XRX indicates a rather cheap valuation: XRX is cheaper than 94.29% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 32.73. XRX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 2.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, XRX is valued a bit cheaper than 74.29% of the companies in the same industry.
100.00% of the companies in the same industry are more expensive than XRX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.18 | ||
| EV/EBITDA | 17.53 |
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
With a Yearly Dividend Yield of 3.13%, XRX has a reasonable but not impressive dividend return.
In the last 3 months the price of XRX has falen by -26.62%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
XRX's Dividend Yield is rather good when compared to the industry average which is at 1.87. XRX pays more dividend than 97.14% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, XRX pays a bit more dividend than the S&P500 average.
| 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-9.99%
EPS Next 2Y22.66%
EPS Next 3Y14.6%
3.06
+0.05 (+1.66%)
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-5.98%
Ins Owners7.73%
Ins Owner Change14.76%
Market Cap385.04M
Revenue(TTM)6.61B
Net Income(TTM)-991.00M
Analysts47.27
Price Target7.96 (160.13%)
Short Float %19.51%
Short Ratio4.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
Yearly Dividend1.14
Dividend Growth(5Y)0.72%
DP-9.99%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-416.19%
Min EPS beat(2)-892.08%
Max EPS beat(2)59.69%
EPS beat(4)1
Avg EPS beat(4)-240.68%
Min EPS beat(4)-892.08%
Max EPS beat(4)59.69%
EPS beat(8)1
Avg EPS beat(8)-143.49%
EPS beat(12)5
Avg EPS beat(12)-67.93%
EPS beat(16)7
Avg EPS beat(16)-62.02%
Revenue beat(2)1
Avg Revenue beat(2)-1.83%
Min Revenue beat(2)-4.62%
Max Revenue beat(2)0.96%
Revenue beat(4)2
Avg Revenue beat(4)-1.43%
Min Revenue beat(4)-4.62%
Max Revenue beat(4)1.64%
Revenue beat(8)2
Avg Revenue beat(8)-2.56%
Revenue beat(12)3
Avg Revenue beat(12)-2.15%
Revenue beat(16)4
Avg Revenue beat(16)-1.97%
PT rev (1m)0%
PT rev (3m)-23.53%
EPS NQ rev (1m)-3.24%
EPS NQ rev (3m)1.95%
EPS NY rev (1m)-58.51%
EPS NY rev (3m)-71.83%
Revenue NQ rev (1m)8.97%
Revenue NQ rev (3m)13.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)12.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 2.12 | ||
| P/S | 0.06 | ||
| P/FCF | 1.18 | ||
| P/OCF | 0.94 | ||
| P/B | 0.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.53 |
EPS(TTM)-0.14
EYN/A
EPS(NY)1.44
Fwd EY47.2%
FCF(TTM)2.59
FCFY84.67%
OCF(TTM)3.26
OCFY106.48%
SpS52.51
BVpS4.6
TBVpS-20.32
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.84% | ||
| ROE | -171.16% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 27.61% | ||
| FCFM | 4.93% |
ROA(3y)-6.33%
ROA(5y)-4.27%
ROE(3y)-37.8%
ROE(5y)-24.09%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)3.38%
ROCE(5y)3.56%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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 Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7 | ||
| Debt/FCF | 13.52 | ||
| Debt/EBITDA | 16.47 | ||
| Cap/Depr | 26.17% | ||
| Cap/Sales | 1.27% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 166.67% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 1.05 |
F-Score4
WACC5.64%
ROIC/WACCN/A
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)-113.59%
EPS 3Y-14.01%
EPS 5Y-25.94%
EPS Q2Q%-20%
EPS Next Y-77.7%
EPS Next 2Y22.66%
EPS Next 3Y14.6%
EPS Next 5YN/A
Revenue 1Y (TTM)3.67%
Revenue growth 3Y-4.03%
Revenue growth 5Y-7.26%
Sales Q2Q%28.34%
Revenue Next Year12.74%
Revenue Next 2Y10.51%
Revenue Next 3Y6.25%
Revenue Next 5Y-0.46%
EBIT growth 1Y-135.71%
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-25.57%
FCF growth 3Y-5.93%
FCF growth 5Y-18.11%
OCF growth 1Y-15.11%
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 2 / 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 -9.99%.