XEROX HOLDINGS CORP (XRX) Stock Fundamental Analysis
USA - NASDAQ:XRX - US98421M1062 - Common Stock
2.6 USD
-0.15 (-5.45%)
2.65 USD
+0.05 (+1.92%)
XRX gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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 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.
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
With a Return On Assets value of -9.84%, XRX perfoms like the industry average, outperforming 48.57% of the companies in the same industry.
XRX's Return On Equity of -171.16% is on the low side compared to the rest of the industry. XRX is outperformed by 65.71% 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.
With a Gross Margin value of 27.61%, XRX perfoms like the industry average, outperforming 48.57% of the companies in the same industry.
XRX's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for XRX so they could not be analyzed.
| 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.
The number of shares outstanding for XRX has been increased compared to 1 year ago.
The number of shares outstanding for XRX has been reduced compared to 5 years ago.
XRX has a worse debt/assets ratio than last year.
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 45.71% of the companies in the same industry.
The Debt to FCF ratio of XRX is 13.52, which is on the high side as it means it would take XRX, 13.52 years of fcf income to pay off all of its debts.
XRX has a Debt to FCF ratio (13.52) which is comparable to the rest of the industry.
XRX has a Debt/Equity ratio of 7.00. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 7.00, XRX is doing worse than 74.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7 | ||
| Debt/FCF | 13.52 | ||
| Altman-Z | 1.05 |
ROIC/WACCN/A
WACC5.59%
2.3 Liquidity
A Current Ratio of 1.10 indicates that XRX should not have too much problems paying its short term obligations.
XRX's Current ratio of 1.10 is on the low side compared to the rest of the industry. XRX is outperformed by 65.71% of its industry peers.
A Quick Ratio of 0.77 indicates that XRX may have some problems paying its short term obligations.
XRX has a Quick ratio of 0.77. This is comparable to the rest of the industry: XRX outperforms 48.57% of its industry peers.
| 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.
The Revenue has been growing slightly by 3.67% in the past 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
XRX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.60% yearly.
Based on estimates for the next years, XRX will show a decrease in Revenue. The Revenue will decrease by -0.46% on average per year.
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.
With a Price/Forward Earnings ratio of 1.80, the valuation of XRX can be described as very cheap.
Based on the Price/Forward Earnings ratio, XRX is valued cheaper than 97.14% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.62. XRX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 1.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of XRX indicates a somewhat cheap valuation: XRX is cheaper than 74.29% of the companies listed in the same industry.
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 | ||
| EV/EBITDA | 17.37 |
4.3 Compensation for Growth
XRX's earnings are expected to grow with 14.60% in the coming years. This may justify a more expensive valuation.
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.
The stock price of XRX dropped by -32.47% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
XRX's Dividend Yield is rather good when compared to the industry average which is at 1.95. XRX pays more dividend than 97.14% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, 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%
2.6
-0.15 (-5.45%)
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-12.31%
Ins Owners7.73%
Ins Owner Change21.42%
Market Cap327.16M
Revenue(TTM)6.61B
Net Income(TTM)-991.00M
Analysts47.27
Price Target7.96 (206.15%)
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)0%
EPS NQ rev (3m)1.95%
EPS NY rev (1m)-58.51%
EPS NY rev (3m)-71.83%
Revenue NQ rev (1m)0%
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 | 1.8 | ||
| P/S | 0.05 | ||
| P/FCF | 1 | ||
| P/OCF | 0.8 | ||
| P/B | 0.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.37 |
EPS(TTM)-0.14
EYN/A
EPS(NY)1.44
Fwd EY55.55%
FCF(TTM)2.59
FCFY99.65%
OCF(TTM)3.26
OCFY125.32%
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
WACC5.59%
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%.