XRX Fundamental Analysis - XEROX HOLDINGS CORP

Fundamental Rating

We assign a fundamental rating of 3 out of 10 to XRX. 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 valued quite cheap, but it does not seem to be growing.

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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.

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 -15.98%, XRX is not doing good in the industry: 68.75% of the companies in the same industry are doing better.

Looking at the Return On Equity, with a value of -103.55%, XRX is doing worse than 65.63% of the companies in the same industry.

XRX's Return On Invested Capital of 2.38% is in line compared to the rest of the industry. XRX outperforms 50.00% of its industry peers.

Measured over the past 3 years, the Average Return On Invested Capital for XRX is significantly below the industry average of 16.14%.

		Industry Rank	Sector 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%

1.3 Margins

The Operating Margin of XRX (2.72%) 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 (31.46%) which is comparable to the rest of the industry.

In the last couple of years the Gross Margin of XRX has declined.

		Industry Rank	Sector 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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 more shares outstanding

Compared to 5 years ago, XRX has less shares outstanding

XRX has a worse debt/assets ratio than last year.

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.

With a Altman-Z score value of 1.49, XRX perfoms like the industry average, outperforming 43.75% of the companies in the same industry.

XRX has a debt to FCF ratio of 7.38. This is a slightly negative value and a sign of low solvency as XRX would need 7.38 years to pay back of all of its debts.

XRX has a better Debt to FCF ratio (7.38) than 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 71.88% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	2.13
Debt/FCF	7.38
Altman-Z	1.49

ROIC/WACC0.34

WACC7.07%

2.3 Liquidity

A Current Ratio of 1.09 indicates that XRX should not have too much problems paying its short term obligations.

Looking at the Current ratio, with a value of 1.09, XRX is doing worse than 71.88% of the companies in the same industry.

A Quick Ratio of 0.77 indicates that XRX may have some problems paying its short term obligations.

XRX has a worse Quick ratio (0.77) than 62.50% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.09
Quick Ratio	0.77

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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

Looking at the last year, XRX shows a decrease in Revenue. The Revenue has decreased by -7.45% in the last year.

Measured over the past years, XRX shows a decrease in Revenue. The Revenue has been decreasing by -7.26% on average per year.

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

XRX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.31% yearly.

The Revenue is expected to decrease by -0.46% on average over the next years.

EPS Next Y-20.83%

EPS Next 2Y25.06%

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.

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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 6.39 indicates a rather cheap valuation of XRX.

Compared to the rest of the industry, the Price/Earnings ratio of XRX indicates a rather cheap valuation: XRX is cheaper than 96.88% of the companies listed in the same industry.

XRX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.35.

XRX is valuated cheaply with a Price/Forward Earnings ratio of 3.58.

Based on the Price/Forward Earnings ratio, XRX is valued cheaply inside the industry as 90.63% of the companies are valued more expensively.

The average S&P500 Price/Forward Earnings ratio is at 22.19. XRX is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	6.39
Fwd PE	3.58

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 78.13% of the companies listed in the same industry.

100.00% 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	1.51
EV/EBITDA	8.21

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y25.06%

EPS Next 3Y5.31%

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5. Dividend

5.1 Amount

XRX has a Yearly Dividend Yield of 1.85%.

XRX's Dividend Yield is rather good when compared to the industry average which is at 2.05. XRX pays more dividend than 84.38% of the companies in the same industry.

Compared to the average S&P500 Dividend Yield of 2.42, XRX is paying slightly less dividend.

		Industry Rank	Sector Rank
Dividend Yield	1.85%

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.

As XRX did not decrease their dividend in the past 5 years, we can say the dividend looks stable.

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-10.9%

EPS Next 2Y25.06%

EPS Next 3Y5.31%

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XEROX HOLDINGS CORP

NASDAQ:XRX (6/20/2025, 8:06:23 PM)

After market: 5.37 0 (0%)

5.37

-0.03 (-0.56%)

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 Change13.61%

Market Cap675.49M

Analysts50.91

Price Target10.41 (93.85%)

Short Float %17.51%

Short Ratio4.88

Dividend

		Industry Rank	Sector Rank
Dividend Yield	1.85%

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)-9.06%

EPS NY rev (3m)-30%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)-4.41%

Revenue NY rev (1m)0%

Revenue NY rev (3m)-1.94%

Valuation

		Industry Rank	Sector Rank
PE	6.39
Fwd PE	3.58
P/S	0.11
P/FCF	1.51
P/OCF	1.35
P/B	0.53
P/tB	N/A
EV/EBITDA	8.21

EPS(TTM)0.84

EY15.64%

EPS(NY)1.5

Fwd EY27.96%

FCF(TTM)3.55

FCFY66.17%

OCF(TTM)3.98

OCFY74.17%

SpS49.1

BVpS10.07

TBVpS-7.27

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector 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 Rank	Sector 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

WACC7.07%

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-20.83%

EPS Next 2Y25.06%

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%

XEROX HOLDINGS CORP (XRX) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens