XEROX HOLDINGS CORP (XRX)
US98421M1062 - Common Stock
We assign a fundamental rating of 4 out of 10 to XRX. XRX was compared to 32 industry peers in the Technology Hardware, Storage & Peripherals industry. XRX has a medium profitability rating, but doesn't score so well on its financial health evaluation. XRX is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year XRX was profitable.
XRX had a positive operating cash flow in the past year.
In multiple years XRX reported negative net income over the last 5 years.
In the past 5 years XRX always reported a positive cash flow from operatings.
1.2 Ratios
XRX has a Return On Assets (-0.13%) which is in line with its industry peers.
XRX has a better Return On Equity (-0.47%) than 62.50% of its industry peers.
XRX has a better Return On Invested Capital (3.78%) than 62.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for XRX is significantly below the industry average of 14.47%.
The 3 year average ROIC (2.84%) for XRX is below the current ROIC(3.78%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.13% | ||
| ROE | -0.47% | ||
| ROIC | 3.78% |
ROA(3y)-2.2%
ROA(5y)0.7%
ROE(3y)-6.67%
ROE(5y)1.23%
ROIC(3y)2.84%
ROIC(5y)3.94%
1.3 Margins
XRX has a Operating Margin of 5.02%. This is in the better half of the industry: XRX outperforms 62.50% of its industry peers.
In the last couple of years the Operating Margin of XRX has declined.
XRX has a Gross Margin of 33.60%. This is comparable to the rest of the industry: XRX outperforms 53.13% of its industry peers.
XRX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.02% | ||
| PM (TTM) | N/A | ||
| GM | 33.6% |
OM growth 3Y-12.35%
OM growth 5Y-14.21%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.5%
GM growth 5Y-3.45%
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 reduced compared to 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 1.69, we must say that XRX is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of XRX (1.69) is comparable to the rest of the industry.
XRX has a debt to FCF ratio of 5.05. This is a neutral value as XRX would need 5.05 years to pay back of all of its debts.
XRX has a Debt to FCF ratio (5.05) which is in line with its industry peers.
XRX has a Debt/Equity ratio of 0.98. This is a neutral value indicating XRX is somewhat dependend on debt financing.
XRX has a worse Debt to Equity ratio (0.98) than 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 5.05 | ||
| Altman-Z | 1.69 |
ROIC/WACC0.45
WACC8.4%
2.3 Liquidity
XRX has a Current Ratio of 1.14. This is a normal value and indicates that XRX is financially healthy and should not expect problems in meeting its short term obligations.
XRX's Current ratio of 1.14 is on the low side compared to the rest of the industry. XRX is outperformed by 78.13% of its industry peers.
XRX has a Quick Ratio of 1.14. This is a bad value and indicates that XRX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.91, XRX is not doing good in the industry: 78.13% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 66.97% over the past year.
The earnings per share for XRX have been decreasing by -12.11% on average. This is quite bad
Looking at the last year, XRX shows a decrease in Revenue. The Revenue has decreased by -3.11% in the last year.
XRX shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.55% yearly.
EPS 1Y (TTM)66.97%
EPS 3Y8.62%
EPS 5Y-12.11%
EPS growth Q2Q-51.69%
Revenue 1Y (TTM)-3.11%
Revenue growth 3Y-0.65%
Revenue growth 5Y-6.55%
Revenue growth Q2Q-9.07%
3.2 Future
The Earnings Per Share is expected to grow by 13.78% on average over the next years. This is quite good.
XRX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.72% yearly.
EPS Next Y17.37%
EPS Next 2Y15.09%
EPS Next 3Y14.29%
EPS Next 5Y13.78%
Revenue Next Year-5.02%
Revenue Next 2Y-3.18%
Revenue Next 3Y-2.81%
Revenue Next 5Y-1.72%
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 7.79, which indicates a rather cheap valuation of XRX.
Compared to the rest of the industry, the Price/Earnings ratio of XRX indicates a rather cheap valuation: XRX is cheaper than 87.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.20, XRX is valued rather cheaply.
The Price/Forward Earnings ratio is 6.64, which indicates a rather cheap valuation of XRX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of XRX indicates a rather cheap valuation: XRX is cheaper than 96.88% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.63. XRX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.79 | ||
| Fwd PE | 6.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, XRX is valued a bit cheaper than the industry average as 71.88% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, XRX is valued cheaper than 96.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.71 | ||
| EV/EBITDA | 7.57 |
4.3 Compensation for Growth
XRX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
XRX's earnings are expected to grow with 14.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.45
PEG (5Y)N/A
EPS Next 2Y15.09%
EPS Next 3Y14.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.95%, XRX is a good candidate for dividend investing.
In the last 3 months the price of XRX has falen by -25.56%. 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 2.75. XRX pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, XRX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.95% |
5.2 History
The dividend of XRX decreases each year by -9.14%.
XRX has been paying a dividend for at least 10 years, so it has 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)-9.14%
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.
DP-1269.23%
EPS Next 2Y15.09%
EPS Next 3Y14.29%
XEROX HOLDINGS CORP
NASDAQ:XRX (4/25/2024, 7:26:33 PM)
After market: 14.18 0 (0%)14.18
-0.2 (-1.39%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.76B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.95% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.79 | ||
| Fwd PE | 6.64 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.45
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.13% | ||
| ROE | -0.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.02% | ||
| PM (TTM) | N/A | ||
| GM | 33.6% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)66.97%
EPS 3Y8.62%
EPS 5Y
EPS growth Q2Q
EPS Next Y17.37%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.11%
Revenue growth 3Y-0.65%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y