XEROX HOLDINGS CORP (XRX) Stock Fundamental Analysis
USA - NASDAQ:XRX - US98421M1062 - Common Stock
3.75 USD
-0.03 (-0.79%)
3.8098 USD
+0.06 (+1.59%)
Overall XRX gets a fundamental rating of 3 out of 10. We evaluated XRX against 33 industry peers in the Technology Hardware, Storage & Peripherals industry. XRX has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
In the past 5 years XRX reported 4 times negative net income.
Each year in the past 5 years XRX had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -16.18%, XRX is doing worse than 60.61% of the companies in the same industry.
XRX has a worse Return On Equity (-107.49%) than 63.64% of its industry peers.
The Return On Invested Capital of XRX (1.60%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for XRX 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.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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 1.45, we must say that XRX is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of XRX (1.45) is comparable to the rest of the 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 of 13.05. This is comparable to the rest of the industry: XRX outperforms 51.52% of 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's Debt to Equity ratio of 2.61 is on the low side compared to the rest of the industry. XRX is outperformed by 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.61 | ||
| Debt/FCF | 13.05 | ||
| Altman-Z | 1.45 |
ROIC/WACC0.28
WACC5.71%
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.
The Current ratio of XRX (1.46) is comparable to the rest of the industry.
A Quick Ratio of 1.10 indicates that XRX should not have too much problems paying 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.
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.
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 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.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for XRX. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 2.61, the valuation of XRX can be described as very cheap.
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.
XRX is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 2.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, XRX is valued cheaply inside the industry as 87.88% of the companies are valued more expensively.
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 | 1.56 | ||
| EV/EBITDA | 9.81 |
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
With a Yearly Dividend Yield of 2.65%, XRX has a reasonable but not impressive dividend return.
The stock price of XRX dropped by -34.21% 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.
XRX's Dividend Yield is rather good when compared to the industry average which is at 2.15. XRX pays more dividend than 93.94% of the companies in the same industry.
XRX's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
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
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%
3.75
-0.03 (-0.79%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners99.89%
Inst Owner Change32.86%
Ins Owners7.73%
Ins Owner Change14.76%
Market Cap471.86M
Analysts47.27
Price Target7.96 (112.27%)
Short Float %20.3%
Short Ratio4.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
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)-6.02%
PT rev (3m)-23.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-36.09%
EPS NY rev (1m)0%
EPS NY rev (3m)-32.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)20.7%
Revenue NY rev (1m)3.69%
Revenue NY rev (3m)12.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 2.61 | ||
| P/S | 0.08 | ||
| P/FCF | 1.56 | ||
| P/OCF | 1.29 | ||
| P/B | 0.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.81 |
EPS(TTM)-0.09
EYN/A
EPS(NY)1.44
Fwd EY38.34%
FCF(TTM)2.4
FCFY64%
OCF(TTM)2.92
OCFY77.78%
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
WACC5.71%
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 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%