XEROX HOLDINGS CORP (XRX) Stock Fundamental Analysis
NASDAQ:XRX - Nasdaq - US98421M1062 - Common Stock - Currency: USD
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. XRX may be in some trouble as it scores bad on both profitability and health. 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
In the past year XRX has reported negative net income.
In the past year XRX had a positive cash flow from operations.
XRX had negative earnings in 4 of the past 5 years.
XRX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -16.18%, XRX is not doing good in the industry: 65.63% of the companies in the same industry are doing better.
XRX has a Return On Equity (-107.49%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 1.60%, XRX is in line with its industry, outperforming 46.88% 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 16.63%.
| 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
The Operating Margin of XRX (2.12%) 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 (30.35%) 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 | 2.12% | ||
| 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.
Compared to 1 year ago, XRX has more shares outstanding
The number of shares outstanding for XRX has been reduced compared to 5 years ago.
XRX has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.46, we must say that XRX is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.46, XRX perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
XRX has a debt to FCF ratio of 13.05. This is a negative value and a sign of low solvency as XRX would need 13.05 years to pay back of all of its debts.
XRX has a Debt to FCF ratio (13.05) which is in line with its industry peers.
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 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.61 | ||
| Debt/FCF | 13.05 | ||
| Altman-Z | 1.46 |
ROIC/WACC0.28
WACC5.78%
2.3 Liquidity
A Current Ratio of 1.46 indicates that XRX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.46, XRX perfoms like the industry average, outperforming 46.88% of the companies in the same industry.
A Quick Ratio of 1.10 indicates that XRX should not have too much problems paying its short term obligations.
XRX has a Quick ratio (1.10) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
XRX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -107.26%.
The earnings per share for XRX have been decreasing by -25.94% on average. This is quite bad
XRX shows a decrease in Revenue. In the last year, the revenue decreased by -4.97%.
XRX shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.26% yearly.
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
The Earnings Per Share is expected to grow by 5.31% on average over the next years.
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
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
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 2.89.
XRX's Price/Forward Earnings ratio is rather cheap when compared to the industry. XRX is cheaper than 90.63% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of XRX to the average of the S&P500 Index (33.87), we can say XRX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 2.89 |
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 cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.81 | ||
| EV/EBITDA | 9.95 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y25.06%
EPS Next 3Y5.31%
5. Dividend
5.1 Amount
XRX has a Yearly Dividend Yield of 1.92%.
The stock price of XRX dropped by -24.19% 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.
XRX's Dividend Yield is rather good when compared to the industry average which is at 1.98. XRX pays more dividend than 84.38% of the companies in the same industry.
XRX's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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
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-8.91%
EPS Next 2Y25.06%
EPS Next 3Y5.31%
NASDAQ:XRX (8/12/2025, 1:42:12 PM)
4.345
+0.14 (+3.45%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners96.49%
Inst Owner Change0.3%
Ins Owners7.68%
Ins Owner Change14.18%
Market Cap546.56M
Analysts50.91
Price Target10.41 (139.59%)
Short Float %18.87%
Short Ratio5.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.55%
EPS NY rev (1m)0%
EPS NY rev (3m)-24.18%
Revenue NQ rev (1m)15.8%
Revenue NQ rev (3m)17.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 2.89 | ||
| P/S | 0.09 | ||
| P/FCF | 1.81 | ||
| P/OCF | 1.49 | ||
| P/B | 0.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.95 |
EPS(TTM)-0.09
EYN/A
EPS(NY)1.5
Fwd EY34.56%
FCF(TTM)2.4
FCFY55.26%
OCF(TTM)2.92
OCFY67.15%
SpS49.08
BVpS10.62
TBVpS-6.92
PEG (NY)N/A
PEG (5Y)N/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%
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 Turnover0.7
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 | 1.46 |
F-Score4
WACC5.78%
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-20.83%
EPS Next 2Y25.06%
EPS Next 3Y5.31%
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 Year0.37%
Revenue Next 2Y7.33%
Revenue Next 3Y-1.42%
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 3Y35.45%
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%