XEROX HOLDINGS CORP (XRX)
US98421M1062 - Common Stock
Taking everything into account, XRX scores 4 out of 10 in our fundamental rating. XRX was compared to 32 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 bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year XRX was profitable.
In the past year XRX had a positive cash flow from operations.
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
With a Return On Assets value of -1.98%, XRX perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
XRX has a better Return On Equity (-7.60%) than 62.50% of its industry peers.
With a Return On Invested Capital value of 2.38%, XRX perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for XRX is significantly below the industry average of 14.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.98% | ||
| ROE | -7.6% | ||
| ROIC | 2.38% |
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
XRX has a Operating Margin (3.39%) which is comparable to the rest of the industry.
XRX's Operating Margin has declined in the last couple of years.
XRX has a Gross Margin (32.49%) which is comparable to the rest of the industry.
XRX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.39% | ||
| PM (TTM) | N/A | ||
| GM | 32.49% |
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
XRX has less shares outstanding than it did 5 years ago.
XRX has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.65, we must say that XRX is in the distress zone and has some risk of bankruptcy.
XRX has a Altman-Z score (1.65) which is comparable to the rest of the industry.
XRX has a debt to FCF ratio of 7.36. This is a slightly negative value and a sign of low solvency as XRX would need 7.36 years to pay back of all of its debts.
XRX's Debt to FCF ratio of 7.36 is in line compared to the rest of the industry. XRX outperforms 56.25% of its industry peers.
XRX has a Debt/Equity ratio of 1.23. This is a high value indicating a heavy dependency on external financing.
XRX's Debt to Equity ratio of 1.23 is on the low side compared to the rest of the industry. XRX is outperformed by 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 7.36 | ||
| Altman-Z | 1.65 |
ROIC/WACC0.31
WACC7.66%
2.3 Liquidity
A Current Ratio of 1.37 indicates that XRX should not have too much problems paying its short term obligations.
XRX's Current ratio of 1.37 is on the low side compared to the rest of the industry. XRX is outperformed by 71.88% of its industry peers.
A Quick Ratio of 1.07 indicates that XRX should not have too much problems paying its short term obligations.
The Quick ratio of XRX (1.07) is worse than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The earnings per share for XRX have decreased strongly by -38.31% 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.
XRX shows a decrease in Revenue. In the last year, the revenue decreased by -3.11%.
The Revenue has been decreasing by -6.55% on average over the past years.
EPS 1Y (TTM)-38.31%
EPS 3Y8.62%
EPS 5Y-12.11%
EPS Q2Q%-34.09%
Revenue 1Y (TTM)-3.11%
Revenue growth 3Y-0.65%
Revenue growth 5Y-6.55%
Sales Q2Q%-10.03%
3.2 Future
XRX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 51.73% yearly.
The Revenue is expected to decrease by -2.62% on average over the next years.
EPS Next Y27.45%
EPS Next 2Y11.62%
EPS Next 3Y11.68%
EPS Next 5Y51.73%
Revenue Next Year-6.57%
Revenue Next 2Y-4.06%
Revenue Next 3Y-3.61%
Revenue Next 5Y-2.62%
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.
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
With a Price/Earnings ratio of 8.90, the valuation of XRX can be described as very reasonable.
Based on the Price/Earnings ratio, XRX is valued cheaply inside the industry as 96.88% of the companies are valued more expensively.
XRX is valuated cheaply when we compare the Price/Earnings ratio to 24.41, which is the current average of the S&P500 Index.
XRX is valuated cheaply with a Price/Forward Earnings ratio of 4.86.
Based on the Price/Forward Earnings ratio, XRX is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.59, XRX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.9 | ||
| Fwd PE | 4.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, XRX is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
96.88% 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 | 2.8 | ||
| EV/EBITDA | 9.03 |
4.3 Compensation for Growth
XRX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y11.62%
EPS Next 3Y11.68%
5. Dividend
5.1 Amount
XRX has a Yearly Dividend Yield of 8.49%, which is a nice return.
The stock price of XRX dropped by -21.21% 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.
Compared to an average industry Dividend Yield of 2.66, XRX pays a better dividend. On top of this XRX pays more dividend than 100.00% of the companies listed in the same industry.
XRX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.49% |
5.2 History
The dividend of XRX decreases each year by -9.14%.
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)-9.14%
Div Incr Years0
Div Non Decr Years5
5.3 Sustainability
XRX has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-79.7%
EPS Next 2Y11.62%
EPS Next 3Y11.68%
XEROX HOLDINGS CORP
NASDAQ:XRX (7/26/2024, 7:08:16 PM)
After market: 11.15 +0.12 (+1.09%)11.03
+0.21 (+1.94%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.37B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.49% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.9 | ||
| Fwd PE | 4.86 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.32
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.98% | ||
| ROE | -7.6% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.39% | ||
| PM (TTM) | N/A | ||
| GM | 32.49% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-38.31%
EPS 3Y8.62%
EPS 5Y
EPS Q2Q%
EPS Next Y27.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.11%
Revenue growth 3Y-0.65%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y