XEROX HOLDINGS CORP (XRX) Stock Fundamental Analysis
USA - NASDAQ:XRX - US98421M1062 - Common Stock
3.57 USD
-0.06 (-1.65%)
3.6318 USD
+0.06 (+1.73%)
Taking everything into account, XRX scores 3 out of 10 in our fundamental rating. XRX was compared to 34 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
XRX had negative 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.
1.2 Ratios
XRX has a Return On Assets of -16.18%. This is comparable to the rest of the industry: XRX outperforms 41.18% of its industry peers.
With a Return On Equity value of -107.49%, XRX is not doing good in the industry: 61.76% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 1.60%, 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 14.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -16.18% | ||
| ROE | -107.49% | ||
| ROIC | 1.6% |
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
XRX has a Operating Margin (2.12%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of XRX has declined.
Looking at the Gross Margin, with a value of 30.35%, XRX is in line with its industry, outperforming 52.94% of the companies in the same industry.
XRX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.12% | ||
| PM (TTM) | N/A | ||
| GM | 30.35% |
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
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.
XRX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for XRX is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.45, we must say that XRX is in the distress zone and has some risk of bankruptcy.
XRX's Altman-Z score of 1.45 is in line compared to the rest of the industry. XRX outperforms 44.12% of its industry peers.
The Debt to FCF ratio of XRX is 13.05, which is on the high side as it means it would take XRX, 13.05 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 13.05, XRX is in line with its industry, outperforming 52.94% of the companies in the same industry.
XRX has a Debt/Equity ratio of 2.61. This is a high value indicating a heavy dependency on external financing.
XRX has a worse Debt to Equity ratio (2.61) than 73.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.61 | ||
| Debt/FCF | 13.05 | ||
| Altman-Z | 1.45 |
ROIC/WACC0.28
WACC5.68%
2.3 Liquidity
XRX has a Current Ratio of 1.46. 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 Current ratio (1.46) which is in line with its industry peers.
XRX has a Quick 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 has a Quick ratio of 1.10. This is comparable to the rest of the industry: XRX outperforms 58.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The earnings per share for XRX have decreased strongly by -107.26% 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 -25.94% on average per year.
Looking at the last year, XRX shows a decrease in Revenue. The Revenue has decreased by -4.97% in the last year.
The Revenue has been decreasing by -7.26% on average over the past years.
EPS 1Y (TTM)-107.26%
EPS 3Y-14.01%
EPS 5Y-25.94%
EPS Q2Q%-320.69%
Revenue 1Y (TTM)-4.97%
Revenue growth 3Y-4.03%
Revenue growth 5Y-7.26%
Sales Q2Q%-0.13%
3.2 Future
Based on estimates for the next years, XRX will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.60% 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-77.7%
EPS Next 2Y22.66%
EPS Next 3Y14.6%
EPS Next 5YN/A
Revenue Next Year12.74%
Revenue Next 2Y10.51%
Revenue Next 3Y6.25%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for XRX. In the last year negative earnings were reported.
XRX is valuated cheaply with a Price/Forward Earnings ratio of 2.47.
XRX's Price/Forward Earnings ratio is rather cheap when compared to the industry. XRX is cheaper than 97.06% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of XRX to the average of the S&P500 Index (22.87), we can say XRX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 2.47 |
4.2 Price Multiples
85.29% of the companies in the same industry are more expensive than XRX, based on the Enterprise Value to EBITDA ratio.
XRX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. XRX is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.49 | ||
| EV/EBITDA | 9.76 |
4.3 Compensation for Growth
A more expensive valuation may be justified as XRX's earnings are expected to grow with 14.60% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y22.66%
EPS Next 3Y14.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.13%, XRX has a reasonable but not impressive dividend return.
XRX's Dividend Yield is rather good when compared to the industry average which is at 1.86. XRX pays more dividend than 97.06% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, XRX pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
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
5.3 Sustainability
XRX has negative earnings and hence a negative payout ratio. The dividend may be in danger.
XRX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-8.91%
EPS Next 2Y22.66%
EPS Next 3Y14.6%
3.57
-0.06 (-1.65%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners99.89%
Inst Owner Change-0.86%
Ins Owners7.73%
Ins Owner Change14.76%
Market Cap449.21M
Revenue(TTM)6.17B
Net Income(TTM)-1436000000
Analysts47.27
Price Target7.96 (122.97%)
Short Float %19.51%
Short Ratio4.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
Yearly Dividend1.14
Dividend Growth(5Y)0.72%
DP-8.91%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-495.05%
Min EPS beat(2)-892.08%
Max EPS beat(2)-98.02%
EPS beat(4)0
Avg EPS beat(4)-268.42%
Min EPS beat(4)-892.08%
Max EPS beat(4)-32.32%
EPS beat(8)1
Avg EPS beat(8)-147.42%
EPS beat(12)4
Avg EPS beat(12)-77.28%
EPS beat(16)7
Avg EPS beat(16)-65.19%
Revenue beat(2)1
Avg Revenue beat(2)-1.37%
Min Revenue beat(2)-3.7%
Max Revenue beat(2)0.96%
Revenue beat(4)2
Avg Revenue beat(4)-2.03%
Min Revenue beat(4)-7%
Max Revenue beat(4)1.64%
Revenue beat(8)2
Avg Revenue beat(8)-2.53%
Revenue beat(12)3
Avg Revenue beat(12)-1.95%
Revenue beat(16)4
Avg Revenue beat(16)-1.9%
PT rev (1m)0%
PT rev (3m)-23.53%
EPS NQ rev (1m)-36.73%
EPS NQ rev (3m)-59.57%
EPS NY rev (1m)-58.51%
EPS NY rev (3m)-71.83%
Revenue NQ rev (1m)7.19%
Revenue NQ rev (3m)29.39%
Revenue NY rev (1m)3.69%
Revenue NY rev (3m)12.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 2.47 | ||
| P/S | 0.07 | ||
| P/FCF | 1.49 | ||
| P/OCF | 1.22 | ||
| P/B | 0.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.76 |
EPS(TTM)-0.09
EYN/A
EPS(NY)1.44
Fwd EY40.46%
FCF(TTM)2.4
FCFY67.23%
OCF(TTM)2.92
OCFY81.7%
SpS49.07
BVpS10.62
TBVpS-6.91
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -16.18% | ||
| ROE | -107.49% | ||
| ROCE | 2.03% | ||
| ROIC | 1.6% | ||
| ROICexc | 1.73% | ||
| ROICexgc | 2.73% | ||
| OM | 2.12% | ||
| PM (TTM) | N/A | ||
| GM | 30.35% | ||
| FCFM | 4.89% |
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%
ROICexgc growth 3Y-8.95%
ROICexgc 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 Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.61 | ||
| Debt/FCF | 13.05 | ||
| Debt/EBITDA | 8.62 | ||
| Cap/Depr | 23.81% | ||
| Cap/Sales | 1.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 90.84% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 1.45 |
F-Score4
WACC5.68%
ROIC/WACC0.28
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)-107.26%
EPS 3Y-14.01%
EPS 5Y-25.94%
EPS Q2Q%-320.69%
EPS Next Y-77.7%
EPS Next 2Y22.66%
EPS Next 3Y14.6%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.97%
Revenue growth 3Y-4.03%
Revenue growth 5Y-7.26%
Sales Q2Q%-0.13%
Revenue Next Year12.74%
Revenue Next 2Y10.51%
Revenue Next 3Y6.25%
Revenue Next 5Y-0.46%
EBIT growth 1Y-33.16%
EBIT growth 3Y-23.42%
EBIT growth 5Y-32.65%
EBIT Next Year77.35%
EBIT Next 3Y38.67%
EBIT Next 5Y20.31%
FCF growth 1Y-1.95%
FCF growth 3Y-5.93%
FCF growth 5Y-18.11%
OCF growth 1Y4.56%
OCF growth 3Y-6.69%
OCF growth 5Y-17.45%
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.
What is the valuation status for XRX stock?
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.
Can you provide the financial health for XRX stock?
The financial health rating of XEROX HOLDINGS CORP (XRX) is 3 / 10.
Can you provide the dividend sustainability for XRX stock?
The dividend rating of XEROX HOLDINGS CORP (XRX) is 6 / 10 and the dividend payout ratio is -8.91%.