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XEROX HOLDINGS CORP (XRX) Stock Fundamental Analysis

NASDAQ:XRX - Nasdaq - US98421M1062 - Common Stock - Currency: USD

5.16  -0.18 (-3.37%)

After market: 5.16 0 (0%)

Fundamental Rating

3

Taking everything into account, XRX scores 3 out of 10 in our fundamental rating. XRX was compared to 32 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.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

XRX had positive earnings in the past year.
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.
XRX Yearly Net Income VS EBIT VS OCF VS FCFXRX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B -1B 1.5B

1.2 Ratios

XRX has a Return On Assets of -15.98%. This is in the lower half of the industry: XRX underperforms 68.75% of its industry peers.
With a Return On Equity value of -103.55%, XRX is not doing good in the industry: 65.63% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 2.38%, XRX is in line with its industry, outperforming 50.00% of the companies in the same industry.
XRX had an Average Return On Invested Capital over the past 3 years of 2.67%. This is significantly below the industry average of 16.42%.
Industry RankSector Rank
ROA -15.98%
ROE -103.55%
ROIC 2.38%
ROA(3y)-6.33%
ROA(5y)-4.27%
ROE(3y)-37.8%
ROE(5y)-24.09%
ROIC(3y)2.67%
ROIC(5y)2.81%
XRX Yearly ROA, ROE, ROICXRX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40 -60 -80 -100

1.3 Margins

XRX has a Operating Margin (2.72%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of XRX has declined.
XRX's Gross Margin of 31.46% is in line compared to the rest of the industry. XRX outperforms 50.00% of its industry peers.
In the last couple of years the Gross Margin of XRX has declined.
Industry RankSector Rank
OM 2.72%
PM (TTM) N/A
GM 31.46%
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%
XRX Yearly Profit, Operating, Gross MarginsXRX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40

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2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), XRX is destroying value.
The number of shares outstanding for XRX has been increased compared to 1 year ago.
Compared to 5 years ago, XRX has less shares outstanding
XRX has a worse debt/assets ratio than last year.
XRX Yearly Shares OutstandingXRX Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
XRX Yearly Total Debt VS Total AssetsXRX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B 25B

2.2 Solvency

XRX has an Altman-Z score of 1.49. This is a bad value and indicates that XRX is not financially healthy and even has some risk of bankruptcy.
XRX has a Altman-Z score of 1.49. This is comparable to the rest of the industry: XRX outperforms 43.75% of its industry peers.
The Debt to FCF ratio of XRX is 7.38, which is on the high side as it means it would take XRX, 7.38 years of fcf income to pay off all of its debts.
XRX's Debt to FCF ratio of 7.38 is fine compared to the rest of the industry. XRX outperforms 65.63% of its industry peers.
A Debt/Equity ratio of 2.13 is on the high side and indicates that XRX has dependencies on debt financing.
XRX's Debt to Equity ratio of 2.13 is on the low side compared to the rest of the industry. XRX is outperformed by 75.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.13
Debt/FCF 7.38
Altman-Z 1.49
ROIC/WACC0.34
WACC7.02%
XRX Yearly LT Debt VS Equity VS FCFXRX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B 8B

2.3 Liquidity

XRX has a Current Ratio of 1.09. 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 (1.09) than 68.75% of its industry peers.
XRX has a Quick Ratio of 1.09. 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 0.77, XRX is doing worse than 62.50% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.09
Quick Ratio 0.77
XRX Yearly Current Assets VS Current LiabilitesXRX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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2

3. Growth

3.1 Past

The earnings per share for XRX have decreased strongly by -39.57% 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 decreased by -7.45% in the past year.
The Revenue has been decreasing by -7.26% on average over the past years.
EPS 1Y (TTM)-39.57%
EPS 3Y-14.01%
EPS 5Y-25.94%
EPS Q2Q%-200%
Revenue 1Y (TTM)-7.45%
Revenue growth 3Y-4.03%
Revenue growth 5Y-7.26%
Sales Q2Q%-3%

3.2 Future

Based on estimates for the next years, XRX will show a small growth in Earnings Per Share. The EPS will grow by 5.31% on average per year.
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-12.94%
EPS Next 2Y27.15%
EPS Next 3Y5.31%
EPS Next 5YN/A
Revenue Next Year0.37%
Revenue Next 2Y7.33%
Revenue Next 3Y-1.42%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
XRX Yearly Revenue VS EstimatesXRX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5B 10B 15B 20B
XRX Yearly EPS VS EstimatesXRX Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3 4

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7

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 6.14, the valuation of XRX can be described as very cheap.
XRX's Price/Earnings ratio is rather cheap when compared to the industry. XRX is cheaper than 96.88% of the companies in the same industry.
XRX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.31.
A Price/Forward Earnings ratio of 3.32 indicates a rather cheap valuation of XRX.
Based on the Price/Forward Earnings ratio, XRX is valued cheaper than 90.63% of the companies in the same industry.
XRX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 6.14
Fwd PE 3.32
XRX Price Earnings VS Forward Price EarningsXRX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, XRX is valued a bit cheaper than 78.13% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, XRX is valued cheaper than 100.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 1.45
EV/EBITDA 8.15
XRX Per share dataXRX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y27.15%
EPS Next 3Y5.31%

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5

5. Dividend

5.1 Amount

XRX has a Yearly Dividend Yield of 1.87%.
XRX's Dividend Yield is rather good when compared to the industry average which is at 2.03. XRX pays more dividend than 87.50% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.40, XRX is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.87%

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
XRX Yearly Dividends per shareXRX Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

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-10.9%
EPS Next 2Y27.15%
EPS Next 3Y5.31%
XRX Yearly Income VS Free CF VS DividendXRX Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B -1B

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XEROX HOLDINGS CORP

NASDAQ:XRX (6/13/2025, 8:00:02 PM)

After market: 5.16 0 (0%)

5.16

-0.18 (-3.37%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)05-01 2025-05-01/bmo
Earnings (Next)07-23 2025-07-23/bmo
Inst Owners96.19%
Inst Owner Change-1.54%
Ins Owners7.76%
Ins Owner Change12.69%
Market Cap649.08M
Analysts50.91
Price Target10.41 (101.74%)
Short Float %21.89%
Short Ratio4.9
Dividend
Industry RankSector Rank
Dividend Yield 1.87%
Yearly Dividend1.14
Dividend Growth(5Y)0.72%
DP-10.9%
Div Incr Years0
Div Non Decr Years6
Ex-Date06-30 2025-06-30 (0.025)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-65.17%
Min EPS beat(2)-98.02%
Max EPS beat(2)-32.32%
EPS beat(4)0
Avg EPS beat(4)-53.69%
Min EPS beat(4)-98.02%
Max EPS beat(4)-32.32%
EPS beat(8)2
Avg EPS beat(8)-30.49%
EPS beat(12)5
Avg EPS beat(12)1.81%
EPS beat(16)8
Avg EPS beat(16)-7.27%
Revenue beat(2)1
Avg Revenue beat(2)-1.03%
Min Revenue beat(2)-3.7%
Max Revenue beat(2)1.64%
Revenue beat(4)1
Avg Revenue beat(4)-2.85%
Min Revenue beat(4)-7%
Max Revenue beat(4)1.64%
Revenue beat(8)1
Avg Revenue beat(8)-2.78%
Revenue beat(12)2
Avg Revenue beat(12)-2.11%
Revenue beat(16)4
Avg Revenue beat(16)-1.96%
PT rev (1m)0%
PT rev (3m)-0.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-74.47%
EPS NY rev (1m)0%
EPS NY rev (3m)-23.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.94%
Valuation
Industry RankSector Rank
PE 6.14
Fwd PE 3.32
P/S 0.11
P/FCF 1.45
P/OCF 1.3
P/B 0.51
P/tB N/A
EV/EBITDA 8.15
EPS(TTM)0.84
EY16.28%
EPS(NY)1.55
Fwd EY30.08%
FCF(TTM)3.55
FCFY68.87%
OCF(TTM)3.98
OCFY77.19%
SpS49.1
BVpS10.07
TBVpS-7.27
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -15.98%
ROE -103.55%
ROCE 3.02%
ROIC 2.38%
ROICexc 2.53%
ROICexgc 4.35%
OM 2.72%
PM (TTM) N/A
GM 31.46%
FCFM 7.24%
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 Turnover0.75
Health
Industry RankSector Rank
Debt/Equity 2.13
Debt/FCF 7.38
Debt/EBITDA 6.09
Cap/Depr 19.64%
Cap/Sales 0.87%
Interest Coverage 250
Cash Conversion 113.09%
Profit Quality N/A
Current Ratio 1.09
Quick Ratio 0.77
Altman-Z 1.49
F-Score4
WACC7.02%
ROIC/WACC0.34
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)-39.57%
EPS 3Y-14.01%
EPS 5Y-25.94%
EPS Q2Q%-200%
EPS Next Y-12.94%
EPS Next 2Y27.15%
EPS Next 3Y5.31%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.45%
Revenue growth 3Y-4.03%
Revenue growth 5Y-7.26%
Sales Q2Q%-3%
Revenue Next Year0.37%
Revenue Next 2Y7.33%
Revenue Next 3Y-1.42%
Revenue Next 5Y-0.46%
EBIT growth 1Y-25.66%
EBIT growth 3Y-23.42%
EBIT growth 5Y-32.65%
EBIT Next Year52.77%
EBIT Next 3Y23.67%
EBIT Next 5Y20.31%
FCF growth 1Y266.39%
FCF growth 3Y-5.93%
FCF growth 5Y-18.11%
OCF growth 1Y192.98%
OCF growth 3Y-6.69%
OCF growth 5Y-17.45%