Xerox Holdings (NasdaqGS:XRX) - Share price, News & Analysis

XRX fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	3/6
Past Performance	0/6
Financial Health	2/6
Dividends	5/6

XRX Stock Overview

Xerox Holdings Corporation, a workplace technology company, designs, develops, and sells document management systems and solutions in the United States, Europe, Canada, and internationally.

Rewards

Trading at 72.5% below our estimate of its fair value

Earnings are forecast to grow 48.92% per year

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 5.82% is not well covered by earnings

Xerox Holdings Competitors

NYSE:HPQ

US$36.5b

Samsung Electronics

KOSE:A005930

₩455.9t

Oracle

NYSE:ORCL

US$183.1b

Cisco Systems

NasdaqGS:CSCO

US$178.4b

Price History & Performance

Summary of all time highs, changes and price drops for Xerox Holdings
Historical stock prices
Current Share Price	US$17.18
52 Week High	US$25.53
52 Week Low	US$16.07
Beta	1.69
1 Month Change	-13.45%
3 Month Change	-21.27%
1 Year Change	-27.63%
3 Year Change	-46.16%
5 Year Change	-38.64%
Change since IPO	-55.38%

Recent News & Updates

May 20

Xerox Holdings (NASDAQ:XRX) Seems To Be Using A Lot Of Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

	XRX	US Tech	US Market
7D	-0.5%	-6.4%	-2.7%
1Y	-27.6%	8.3%	-12.9%

Return vs Industry: XRX underperformed the US Tech industry which returned 6.7% over the past year.

Return vs Market: XRX underperformed the US Market which returned -12.7% over the past year.

Price Volatility

Is XRX's price volatile compared to industry and market?
XRX volatility
XRX Average Weekly Movement	7.2%
Tech Industry Average Movement	8.8%
Market Average Movement	7.9%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	3.0%

Stable Share Price: XRX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: XRX's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1906	23,400	John Visentin	https://www.xerox.com

Xerox Holdings Corporation, a workplace technology company, designs, develops, and sells document management systems and solutions in the United States, Europe, Canada, and internationally. It offers workplace solutions, including desktop monochrome, and color and multifunction printers; digital printing presses and light production devices, and solutions; and digital services that leverage workflow automation, personalization and communication software, content management solutions, and digitization services. The company also provides graphic communications and production solutions; and IT services, end user computing devices, network infrastructure, communications technology, and a range of managed IT solutions, such as technology product support, professional engineering, and commercial robotic process automation.

Xerox Holdings Fundamentals Summary

How do Xerox Holdings's earnings and revenue compare to its market cap?
XRX fundamental statistics
Market Cap	US$2.66b
Earnings (TTM)	-US$564.00m
Revenue (TTM)	US$7.00b

0.4x

P/S Ratio

-4.7x

P/E Ratio

Is XRX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
XRX income statement (TTM)
Revenue	US$7.00b
Cost of Revenue	US$4.57b
Gross Profit	US$2.32b
Other Expenses	US$2.89b
Earnings	-US$564.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-3.64
Gross Margin	33.19%
Net Profit Margin	-8.06%
Debt/Equity Ratio	96.8%

How did XRX perform over the long term?

See historical performance and comparison

Dividends

5.8%

Current Dividend Yield

-31%

Payout Ratio

Valuation

Is Xerox Holdings undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: XRX ($17.18) is trading below our estimate of fair value ($62.42)

Significantly Below Fair Value: XRX is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: XRX is unprofitable, so we can't compare its PE Ratio to the US Tech industry average.

PE vs Market: XRX is unprofitable, so we can't compare its PE Ratio to the US market.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate XRX's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: XRX is good value based on its PB Ratio (0.6x) compared to the US Tech industry average (1.3x).

Future Growth

How is Xerox Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

48.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: XRX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: XRX is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: XRX's is expected to become profitable in the next 3 years.

Revenue vs Market: XRX's revenue is expected to decline over the next 3 years (-0.9% per year).

High Growth Revenue: XRX's revenue is forecast to decline over the next 3 years (-0.9% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: XRX's Return on Equity is forecast to be low in 3 years time (8.4%).

Past Performance

How has Xerox Holdings performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-26.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: XRX is currently unprofitable.

Growing Profit Margin: XRX is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: XRX is unprofitable, and losses have increased over the past 5 years at a rate of 26.2% per year.

Accelerating Growth: Unable to compare XRX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: XRX is unprofitable, making it difficult to compare its past year earnings growth to the Tech industry (86%).

Return on Equity

High ROE: XRX has a negative Return on Equity (-12.49%), as it is currently unprofitable.

Financial Health

How is Xerox Holdings's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: XRX's short term assets ($4.6B) exceed its short term liabilities ($3.8B).

Long Term Liabilities: XRX's short term assets ($4.6B) do not cover its long term liabilities ($4.9B).

Debt to Equity History and Analysis

Debt Level: XRX's net debt to equity ratio (58.7%) is considered high.

Reducing Debt: XRX's debt to equity ratio has increased from 96.5% to 96.8% over the past 5 years.

Debt Coverage: XRX's debt is not well covered by operating cash flow (13.5%).

Interest Coverage: XRX's interest payments on its debt are well covered by EBIT (3.2x coverage).

Balance Sheet

Dividend

What is Xerox Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

5.82%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: XRX's dividend (5.82%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: XRX's dividend (5.82%) is in the top 25% of dividend payers in the US market (4.09%)

Stability and Growth of Payments

Stable Dividend: XRX's dividends per share have been stable in the past 10 years.

Growing Dividend: XRX's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: XRX is paying a dividend but the company is unprofitable.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (30.3%), XRX's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure

CEO

John Visentin (59 yo)

4yrs

Tenure

US$12,418,877

Compensation

Mr. Giovanni G. Visentin, also known as John, has been Vice Chairman and Chief Executive Officer of Xerox Holdings Corporation since May 14, 2018. Mr. Visentin has been Vice Chairman and Chief Executive Of...

CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD12.42M) is above average for companies of similar size in the US market ($USD6.90M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: XRX's management team is considered experienced (3.6 years average tenure).

Board Members

Experienced Board: XRX's board of directors are considered experienced (4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31