2.31 USD
+0.01 (+0.43%)
2.29 USD
-0.02 (-0.87%)
Taking everything into account, XRX scores 3 out of 10 in our fundamental rating. XRX was compared to 35 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 on the other hand it scores bad on growth.
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.
- In the past 5 years XRX reported 4 times negative net income.
- XRX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- XRX's Return On Assets of -9.84% is in line compared to the rest of the industry. XRX outperforms 51.43% of its industry peers.
- XRX's Return On Equity of -171.16% is on the low side compared to the rest of the industry. XRX is outperformed by 60.00% 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
- In the last couple of years the Operating Margin of XRX has declined.
- XRX has a Gross Margin of 27.61%. This is comparable to the rest of the industry: XRX outperforms 45.71% of its industry peers.
- In the last couple of years the Gross Margin of XRX has declined.
- 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.
- 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 1.04, we must say that XRX is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of XRX (1.04) is comparable to the rest of the industry.
- The Debt to FCF ratio of XRX is 15.57, which is on the high side as it means it would take XRX, 15.57 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 15.57, XRX is in line with its industry, outperforming 54.29% of the companies in the same industry.
- A Debt/Equity ratio of 7.00 is on the high side and indicates that XRX has dependencies on debt financing.
- With a Debt to Equity ratio value of 7.00, XRX is not doing good in the industry: 65.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7 | ||
| Debt/FCF | 15.57 | ||
| Altman-Z | 1.04 |
ROIC/WACCN/A
WACC5.58%
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's Current ratio of 1.10 is in line compared to the rest of the industry. XRX outperforms 45.71% of its industry peers.
- A Quick Ratio of 0.77 indicates that XRX may have some problems paying its short term obligations.
- The Quick ratio of XRX (0.77) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
- The earnings per share for XRX have decreased strongly by -113.59% in the last year.
- The earnings per share for XRX have been decreasing by -25.94% on average. This is quite bad
- The Revenue has been growing slightly by 3.67% 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)-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 12.21% 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-121.46%
EPS Next 2Y5.92%
EPS Next 3Y12.21%
EPS Next 5YN/A
Revenue Next Year14.98%
Revenue Next 2Y13%
Revenue Next 3Y7.85%
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
- XRX reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- With a Price/Forward Earnings ratio of 2.14, the valuation of XRX can be described as very cheap.
- 100.00% of the companies in the same industry are more expensive than XRX, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. XRX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 2.14 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, XRX is valued a bit cheaper than the industry average as 77.14% of the companies are valued more expensively.
- 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 | 1.05 | ||
| EV/EBITDA | 17.17 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as XRX's earnings are expected to grow with 12.21% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.92%
EPS Next 3Y12.21%
5. Dividend
5.1 Amount
- XRX has a Yearly Dividend Yield of 3.97%. Purely for dividend investing, there may be better candidates out there.
- In the last 3 months the price of XRX has falen by -35.47%. 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 0.66, XRX pays a better dividend. On top of this XRX pays more dividend than 97.14% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, XRX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
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.
- 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 2Y5.92%
EPS Next 3Y12.21%
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.
Can you provide the valuation status for XEROX HOLDINGS CORP?
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.
What is the expected EPS growth for XEROX HOLDINGS CORP (XRX) stock?
The Earnings per Share (EPS) of XEROX HOLDINGS CORP (XRX) is expected to decline by -121.46% in the next year.