XEROX HOLDINGS CORP (XRX) Stock Fundamental Analysis
NASDAQ:XRX - US98421M1062 - Common Stock
3.8 USD
-0.03 (-0.78%)
3.83 USD
+0.03 (+0.79%)
Taking everything into account, XRX scores 3 out of 10 in our fundamental rating. XRX was compared to 33 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 it does not seem to be growing.
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
XRX's Return On Assets of -16.18% is on the low side compared to the rest of the industry. XRX is outperformed by 60.61% of its industry peers.
XRX has a worse Return On Equity (-107.49%) than 63.64% of its industry peers.
XRX has a Return On Invested Capital of 1.60%. This is comparable to the rest of the industry: XRX outperforms 48.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for XRX is significantly below the industry average of 15.03%.
| 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.
XRX's Gross Margin of 30.35% is in line compared to the rest of the industry. XRX outperforms 51.52% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so XRX is destroying value.
XRX has more shares outstanding than it did 1 year ago.
The number of shares outstanding for XRX has been reduced compared to 5 years ago.
Compared to 1 year ago, XRX has a worse debt to assets ratio.
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.
Looking at the Altman-Z score, with a value of 1.45, XRX is in line with its industry, outperforming 42.42% of the companies in the same industry.
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 51.52% 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.
Looking at the Debt to Equity ratio, with a value of 2.61, XRX is doing worse than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.61 | ||
| Debt/FCF | 13.05 | ||
| Altman-Z | 1.45 |
ROIC/WACC0.28
WACC5.73%
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.
With a Current ratio value of 1.46, XRX perfoms like the industry average, outperforming 51.52% of the companies in the same industry.
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.
With a Quick ratio value of 1.10, XRX perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
| 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.
XRX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -25.94% yearly.
The Revenue has decreased by -4.97% in the past year.
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 14.60% on average over the next years. This is quite good.
The Revenue is expected to decrease by -0.46% on average over the next years.
EPS Next Y-46.24%
EPS Next 2Y22.37%
EPS Next 3Y14.6%
EPS Next 5YN/A
Revenue Next Year8.72%
Revenue Next 2Y9.53%
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
XRX reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 2.64, which indicates a rather cheap valuation of XRX.
XRX's Price/Forward Earnings ratio is rather cheap when compared to the industry. XRX is cheaper than 93.94% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.48. XRX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 2.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, XRX is valued cheaply inside the industry as 84.85% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of XRX indicates a rather cheap valuation: XRX is cheaper than 96.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.58 | ||
| EV/EBITDA | 9.83 |
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 2Y22.37%
EPS Next 3Y14.6%
5. Dividend
5.1 Amount
XRX has a Yearly Dividend Yield of 1.92%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of XRX has falen by -25.93%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
XRX's Dividend Yield is rather good when compared to the industry average which is at 1.85. XRX pays more dividend than 90.91% of the companies in the same industry.
XRX's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
5.2 History
The dividend of XRX has a limited annual growth rate of 0.77%.
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)0.77%
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.
XRX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-8.91%
EPS Next 2Y22.37%
EPS Next 3Y14.6%
3.8
-0.03 (-0.78%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners96.49%
Inst Owner Change32.86%
Ins Owners7.68%
Ins Owner Change14.18%
Market Cap478.15M
Analysts50.91
Price Target8.47 (122.89%)
Short Float %17.65%
Short Ratio4.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
Yearly Dividend1.14
Dividend Growth(5Y)0.77%
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)-18.64%
PT rev (3m)-18.64%
EPS NQ rev (1m)-36.09%
EPS NQ rev (3m)-33.18%
EPS NY rev (1m)-32.09%
EPS NY rev (3m)-38.25%
Revenue NQ rev (1m)20.7%
Revenue NQ rev (3m)22.24%
Revenue NY rev (1m)8.32%
Revenue NY rev (3m)8.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 2.64 | ||
| P/S | 0.08 | ||
| P/FCF | 1.58 | ||
| P/OCF | 1.3 | ||
| P/B | 0.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.83 |
EPS(TTM)-0.09
EYN/A
EPS(NY)1.44
Fwd EY37.83%
FCF(TTM)2.4
FCFY63.16%
OCF(TTM)2.92
OCFY76.75%
SpS49.07
BVpS10.62
TBVpS-6.91
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 | 1.45 |
F-Score4
WACC5.73%
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-46.24%
EPS Next 2Y22.37%
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 Year8.72%
Revenue Next 2Y9.53%
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 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%