XEROX HOLDINGS CORP (XRX)
US98421M1062 - Common Stock
We assign a fundamental rating of 4 out of 10 to XRX. XRX was compared to 31 industry peers in the Technology Hardware, Storage & Peripherals industry. Both the profitability and financial health of XRX have multiple concerns. XRX is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
XRX had positive earnings in the past year.
XRX had a positive operating cash flow in the past year.
In multiple years XRX reported negative net income over the last 5 years.
Each year in the past 5 years XRX had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -16.49%, XRX is doing worse than 70.97% of the companies in the same industry.
XRX has a worse Return On Equity (-90.44%) than 67.74% of its industry peers.
XRX's Return On Invested Capital of 2.80% is in line compared to the rest of the industry. XRX outperforms 48.39% of its industry peers.
XRX had an Average Return On Invested Capital over the past 3 years of 2.84%. This is significantly below the industry average of 17.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -16.49% | ||
| ROE | -90.44% | ||
| ROIC | 2.8% |
ROA(3y)-2.2%
ROA(5y)0.7%
ROE(3y)-6.67%
ROE(5y)1.23%
ROIC(3y)2.84%
ROIC(5y)3.94%
1.3 Margins
With a Operating Margin value of 3.30%, XRX perfoms like the industry average, outperforming 48.39% of the companies in the same industry.
XRX's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 32.17%, XRX is in line with its industry, outperforming 54.84% of the companies in the same industry.
XRX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.3% | ||
| PM (TTM) | N/A | ||
| GM | 32.17% |
OM growth 3Y-12.35%
OM growth 5Y-14.21%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.5%
GM growth 5Y-3.45%
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.
Compared to 1 year ago, XRX has less shares outstanding
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 1.64, 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 1.64, XRX is doing worse than 64.52% of the companies in the same industry.
The Debt to FCF ratio of XRX is 6.39, which is on the high side as it means it would take XRX, 6.39 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.39, XRX is in the better half of the industry, outperforming 70.97% of the companies in the same industry.
A Debt/Equity ratio of 1.81 is on the high side and indicates that XRX has dependencies on debt financing.
XRX has a worse Debt to Equity ratio (1.81) than 77.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.81 | ||
| Debt/FCF | 6.39 | ||
| Altman-Z | 1.64 |
ROIC/WACC0.38
WACC7.35%
2.3 Liquidity
A Current Ratio of 1.26 indicates that XRX should not have too much problems paying its short term obligations.
XRX has a worse Current ratio (1.26) than 74.19% of its industry peers.
XRX has a Quick Ratio of 1.26. This is a bad value and indicates that XRX is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.95, XRX is in line with its industry, outperforming 41.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The earnings per share for XRX have decreased strongly by -54.82% in the last year.
Measured over the past years, XRX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.11% on average per year.
Looking at the last year, XRX shows a decrease in Revenue. The Revenue has decreased by -9.76% in the last year.
The Revenue has been decreasing by -6.55% on average over the past years.
EPS 1Y (TTM)-54.82%
EPS 3Y8.62%
EPS 5Y-12.11%
EPS Q2Q%-45.65%
Revenue 1Y (TTM)-9.76%
Revenue growth 3Y-0.65%
Revenue growth 5Y-6.55%
Sales Q2Q%-7.51%
3.2 Future
Based on estimates for the next years, XRX will show a very strong growth in Earnings Per Share. The EPS will grow by 51.73% on average per year.
The Revenue is expected to decrease by -2.62% on average over the next years.
EPS Next Y-39.55%
EPS Next 2Y-17.79%
EPS Next 3Y-5.37%
EPS Next 5Y51.73%
Revenue Next Year-10.82%
Revenue Next 2Y-4.24%
Revenue Next 3Y-3.75%
Revenue Next 5Y-2.62%
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 reasonably with a Price/Earnings ratio of 9.11.
Compared to the rest of the industry, the Price/Earnings ratio of XRX indicates a rather cheap valuation: XRX is cheaper than 93.55% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.54, XRX is valued rather cheaply.
A Price/Forward Earnings ratio of 7.62 indicates a rather cheap valuation of XRX.
Based on the Price/Forward Earnings ratio, XRX is valued cheaply inside the industry as 93.55% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.99, XRX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.11 | ||
| Fwd PE | 7.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, XRX is valued cheaply inside the industry as 83.87% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of XRX indicates a rather cheap valuation: XRX is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.28 | ||
| EV/EBITDA | 8.68 |
4.3 Compensation for Growth
A cheap valuation may be justified as XRX's earnings are expected to decrease with -5.37% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-17.79%
EPS Next 3Y-5.37%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 11.74%, XRX is a good candidate for dividend investing.
XRX's Dividend Yield is rather good when compared to the industry average which is at 3.03. XRX pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, XRX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.74% |
5.2 History
The dividend of XRX decreases each year by -9.14%.
XRX has been paying a dividend for at least 10 years, so it has 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)-9.14%
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.
DP-10.28%
EPS Next 2Y-17.79%
EPS Next 3Y-5.37%
XEROX HOLDINGS CORP
NASDAQ:XRX (12/26/2024, 2:13:03 PM)
9.38
+0.15 (+1.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners94.3%
Inst Owner Change-2.89%
Ins Owners7.34%
Ins Owner Change-0.14%
Market Cap1.17B
Analysts43.08
Price Target7.91 (-15.67%)
Short Float %14.61%
Short Ratio7.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.74% |
Dividend Growth(5Y)-9.14%
DP-10.28%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-42.21%
Min EPS beat(2)-51.27%
Max EPS beat(2)-33.15%
EPS beat(4)0
Avg EPS beat(4)-46.3%
Min EPS beat(4)-83.19%
Max EPS beat(4)-17.6%
EPS beat(8)4
Avg EPS beat(8)18.45%
EPS beat(12)6
Avg EPS beat(12)-2.46%
EPS beat(16)8
Avg EPS beat(16)-1.13%
Revenue beat(2)0
Avg Revenue beat(2)-4.68%
Min Revenue beat(2)-7%
Max Revenue beat(2)-2.35%
Revenue beat(4)0
Avg Revenue beat(4)-3.69%
Min Revenue beat(4)-7%
Max Revenue beat(4)-2.35%
Revenue beat(8)1
Avg Revenue beat(8)-2.51%
Revenue beat(12)2
Avg Revenue beat(12)-2.15%
Revenue beat(16)5
Avg Revenue beat(16)-1.37%
PT rev (1m)-27.06%
PT rev (3m)-26.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-58.97%
EPS NY rev (1m)0%
EPS NY rev (3m)-35.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.11 | ||
| Fwd PE | 7.62 | ||
| P/S | 0.18 | ||
| P/FCF | 2.28 | ||
| P/OCF | 2.12 | ||
| P/B | 0.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.68 |
EPS(TTM)1.03
EY10.98%
EPS(NY)1.23
Fwd EY13.11%
FCF(TTM)4.12
FCFY43.89%
OCF(TTM)4.41
OCFY47.06%
SpS51.24
BVpS12.2
TBVpS-2.74
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -16.49% | ||
| ROE | -90.44% | ||
| ROCE | 3.54% | ||
| ROIC | 2.8% | ||
| ROICexc | 3.07% | ||
| ROICexgc | 4.67% | ||
| OM | 3.3% | ||
| PM (TTM) | N/A | ||
| GM | 32.17% | ||
| FCFM | 8.03% |
ROA(3y)-2.2%
ROA(5y)0.7%
ROE(3y)-6.67%
ROE(5y)1.23%
ROIC(3y)2.84%
ROIC(5y)3.94%
ROICexc(3y)3.23%
ROICexc(5y)4.84%
ROICexgc(3y)5.72%
ROICexgc(5y)8.92%
ROCE(3y)3.59%
ROCE(5y)4.98%
ROICexcg growth 3Y-2.54%
ROICexcg growth 5Y-10.89%
ROICexc growth 3Y-1.75%
ROICexc growth 5Y-12.25%
OM growth 3Y-12.35%
OM growth 5Y-14.21%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.5%
GM growth 5Y-3.45%
F-Score5
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.81 | ||
| Debt/FCF | 6.39 | ||
| Debt/EBITDA | 6.13 | ||
| Cap/Depr | 15.48% | ||
| Cap/Sales | 0.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 122.27% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 1.64 |
F-Score5
WACC7.35%
ROIC/WACC0.38
Cap/Depr(3y)18.88%
Cap/Depr(5y)18.37%
Cap/Sales(3y)0.77%
Cap/Sales(5y)0.82%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-54.82%
EPS 3Y8.62%
EPS 5Y-12.11%
EPS Q2Q%-45.65%
EPS Next Y-39.55%
EPS Next 2Y-17.79%
EPS Next 3Y-5.37%
EPS Next 5Y51.73%
Revenue 1Y (TTM)-9.76%
Revenue growth 3Y-0.65%
Revenue growth 5Y-6.55%
Sales Q2Q%-7.51%
Revenue Next Year-10.82%
Revenue Next 2Y-4.24%
Revenue Next 3Y-3.75%
Revenue Next 5Y-2.62%
EBIT growth 1Y-50.82%
EBIT growth 3Y-12.92%
EBIT growth 5Y-19.83%
EBIT Next Year30.74%
EBIT Next 3Y15.77%
EBIT Next 5Y9.02%
FCF growth 1Y341.38%
FCF growth 3Y11.04%
FCF growth 5Y-9.17%
OCF growth 1Y221.05%
OCF growth 3Y7.77%
OCF growth 5Y-9.66%