XEROX HOLDINGS CORP (XRX) Stock Fundamental Analysis
NASDAQ:XRX - Nasdaq - US98421M1062 - Common Stock - Currency: USD
Taking everything into account, XRX scores 3 out of 10 in our fundamental rating. 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 is cheap, but on the other hand it scores bad on growth.
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.
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's Return On Assets of -15.98% is on the low side compared to the rest of the industry. XRX is outperformed by 68.75% of its industry peers.
With a Return On Equity value of -103.55%, 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 Invested Capital of 2.38%. This is comparable to the rest of the industry: XRX outperforms 50.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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
XRX's Operating Margin of 2.72% is in line compared to the rest of the industry. XRX outperforms 46.88% of its industry peers.
In the last couple of years the Operating Margin of XRX has declined.
XRX has a Gross Margin (31.46%) which is in line with its industry peers.
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%
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
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
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.
XRX has a Altman-Z score (1.49) which is in line with its industry peers.
The Debt to FCF ratio of XRX is 7.38, which is on the high side as it means it would take XRX, 7.38 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 7.38, XRX is doing good in the industry, outperforming 65.63% of the companies in the same industry.
XRX has a Debt/Equity ratio of 2.13. This is a high value indicating a heavy dependency on external financing.
XRX has a worse Debt to Equity ratio (2.13) than 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.13 | ||
| Debt/FCF | 7.38 | ||
| Altman-Z | 1.49 |
ROIC/WACC0.4
WACC5.89%
2.3 Liquidity
A Current Ratio of 1.09 indicates that XRX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.09, XRX is not doing good in the industry: 71.88% of the companies in the same industry are doing better.
XRX has a Quick Ratio of 1.09. This is a bad value and indicates that XRX is not financially healthy enough and could expect problems in meeting its short term obligations.
XRX's Quick ratio of 0.77 is on the low side compared to the rest of the industry. XRX is outperformed by 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
XRX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -39.57%.
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 -7.45% in the past year.
The Revenue has been decreasing by -7.26% on average over the past years.
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
Based on estimates for the next years, XRX will show a small growth in Earnings Per Share. The EPS will grow by 5.31% on average per year.
XRX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.46% yearly.
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.
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
XRX is valuated cheaply with a Price/Earnings ratio of 6.07.
Compared to the rest of the industry, the Price/Earnings ratio of XRX indicates a rather cheap valuation: XRX is cheaper than 100.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of XRX to the average of the S&P500 Index (27.41), we can say XRX is valued rather cheaply.
With a Price/Forward Earnings ratio of 3.40, the valuation of XRX can be described as very cheap.
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 35.19. XRX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.07 | ||
| Fwd PE | 3.4 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of XRX indicates a rather cheap valuation: XRX is cheaper than 81.25% of the companies listed 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 | 1.44 | ||
| EV/EBITDA | 8.13 |
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 1.95%.
XRX's Dividend Yield is rather good when compared to the industry average which is at 1.95. 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 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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-10.9%
EPS Next 2Y25.06%
EPS Next 3Y5.31%
5.1
-0.04 (-0.78%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners96.19%
Inst Owner Change0%
Ins Owners7.76%
Ins Owner Change13.73%
Market Cap641.53M
Analysts50.91
Price Target10.41 (104.12%)
Short Float %17.76%
Short Ratio5.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
Yearly Dividend1.14
Dividend Growth(5Y)0.72%
DP-10.9%
Div Incr Years0
Div Non Decr Years6
Ex-Date
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)-72.41%
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)-1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.07 | ||
| Fwd PE | 3.4 | ||
| P/S | 0.1 | ||
| P/FCF | 1.44 | ||
| P/OCF | 1.28 | ||
| P/B | 0.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.13 |
EPS(TTM)0.84
EY16.47%
EPS(NY)1.5
Fwd EY29.44%
FCF(TTM)3.55
FCFY69.68%
OCF(TTM)3.98
OCFY78.09%
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
WACC5.89%
ROIC/WACC0.4
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%