NYSE:XRX

Stock Analysis Report

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Executive Summary

Xerox Holdings Corporation designs, develops, and sells document management systems and solutions in the United States, Europe, Canada, and internationally. More Details


Snowflake Analysis

Very undervalued 6 star dividend payer.


Similar Companies

Share Price & News

How has Xerox Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: XRX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.0%

XRX

4.9%

US Tech

-0.8%

US Market


1 Year Return

-40.7%

XRX

94.4%

US Tech

13.8%

US Market

Return vs Industry: XRX underperformed the US Tech industry which returned 94.4% over the past year.

Return vs Market: XRX underperformed the US Market which returned 13.8% over the past year.


Shareholder returns

XRXIndustryMarket
7 Day-5.0%4.9%-0.8%
30 Day-7.9%-9.9%-5.0%
90 Day17.5%25.9%10.1%
1 Year-38.5%-40.7%96.7%94.4%16.4%13.8%
3 Year-39.8%-46.0%178.4%166.1%36.9%27.8%
5 Year-17.7%-54.4%304.3%268.8%85.0%64.2%

Price Volatility Vs. Market

How volatile is Xerox Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

43.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: XRX ($17.98) is trading below our estimate of fair value ($31.56)

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


Price To Earnings Ratio

PE vs Industry: XRX is good value based on its PE Ratio (8.9x) compared to the US Tech industry average (16.8x).

PE vs Market: XRX is good value based on its PE Ratio (8.9x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: XRX is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: XRX is good value based on its PB Ratio (0.7x) compared to the US Tech industry average (1.4x).


Next Steps

Future Growth

How is Xerox Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

14.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: XRX's forecast earnings growth (14.9% per year) is above the savings rate (2.2%).

Earnings vs Market: XRX's earnings (14.9% per year) are forecast to grow slower than the US market (22.9% per year).

High Growth Earnings: XRX's earnings are forecast to grow, but not significantly.

Revenue vs Market: XRX's revenue is expected to decline over the next 3 years (-2.9% per year).

High Growth Revenue: XRX's revenue is forecast to decline over the next 3 years (-2.9% 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 (8.2%).


Next Steps

Past Performance

How has Xerox Holdings performed over the past 5 years?

-18.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: XRX has high quality earnings.

Growing Profit Margin: XRX's current net profit margins (5.5%) are higher than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: XRX's earnings have declined by 18% per year over the past 5 years.

Accelerating Growth: XRX's earnings growth over the past year (13.2%) exceeds its 5-year average (-18% per year).

Earnings vs Industry: XRX earnings growth over the past year (13.2%) exceeded the Tech industry -0.4%.


Return on Equity

High ROE: XRX's Return on Equity (7.9%) is considered low.


Next Steps

Financial Health

How is Xerox Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: XRX's short term assets ($5.4B) exceed its short term liabilities ($3.8B).

Long Term Liabilities: XRX's short term assets ($5.4B) exceed its long term liabilities ($4.6B).


Debt to Equity History and Analysis

Debt Level: XRX's debt to equity ratio (69.9%) is considered high.

Reducing Debt: XRX's debt to equity ratio has reduced from 73.3% to 69.9% over the past 5 years.

Debt Coverage: XRX's debt is well covered by operating cash flow (25.2%).

Interest Coverage: XRX's interest payments on its debt are well covered by EBIT (11.3x coverage).


Balance Sheet


Next Steps

Dividend

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

5.56%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: XRX's dividend (5.56%) is higher than the bottom 25% of dividend payers in the US market (1.72%).

High Dividend: XRX's dividend (5.56%) is in the top 25% of dividend payers in the US market (4.94%)


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.6%), XRX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: XRX's dividends in 3 years are forecast to be well covered by earnings (34.6% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

John Visentin (58 yo)

2.33yrs

Tenure

US$13,137,434

Compensation

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


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD13.14M) is above average for companies of similar size in the US market ($USD5.74M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Giovanni Visentin
Vice Chairman & CEO2.33yrsUS$13.14m0.11%
$ 4.3m
Steven Bandrowczak
President & COO2.25yrsUS$3.55m0.029%
$ 1.1m
William Osbourn
Executive VP & CFO3.67yrsUS$3.50m0.041%
$ 1.6m
Michael Feldman
Executive VP & President of Americas Operations3.67yrsUS$3.35m0.042%
$ 1.6m
Joseph Mancini
VP & Chief Accounting Officer7.42yrsno data0.040%
$ 1.5m
Naresh Shanker
Senior VP & CTO1.33yrsno data0.00076%
$ 29.1k
Louis Pastor
Executive VP & General Counsel1.92yrsno data0.0069%
$ 264.3k
Anne Squeo
Senior VP and Chief Communications & Brand Officer1.5yrsno datano data
Suzan Morno-Wade
Executive VP & Chief HR Officer1.83yrsno data0.016%
$ 614.3k
Dan Smith
Head of Integrated Marketing for the Middle East and Africa Regionno datano datano data
Xavier Heiss
Executive VP & President of EMEA Operations0.58yrno data0.026%
$ 1.0m
Dean Aloise
Head of HR Consulting Function4.33yrsno datano data

2.3yrs

Average Tenure

55.5yo

Average Age

Experienced Management: XRX's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Giovanni Visentin
Vice Chairman & CEO2.33yrsUS$13.14m0.11%
$ 4.3m
Nicholas Graziano
Independent Director2.33yrsUS$392.33k0.0022%
$ 85.8k
Ravi Ugale
Board Observerno datano datano data
A. Letier
Independent Director2.33yrsUS$384.83kno data
Cheryl Krongard
Independent Director3.67yrsUS$397.33k0.012%
$ 449.6k
Joseph Echevarria
Independent Director3.67yrsUS$402.33kno data
Keith Cozza
Independent Chairman of the Board2.33yrsUS$482.33k0.026%
$ 1.0m
Jonathan Christodoro
Independent Director2.33yrsUS$399.83kno data
Sean Carey
Member of Peak Advisory Council10.5yrsno datano data

2.3yrs

Average Tenure

58yo

Average Age

Experienced Board: XRX's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: XRX 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.


Top Shareholders

Company Information

Xerox Holdings Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Xerox Holdings Corporation
  • Ticker: XRX
  • Exchange: NYSE
  • Founded: 1906
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: US$3.830b
  • Shares outstanding: 213.01m
  • Website: https://www.xerox.com

Number of Employees


Location

  • Xerox Holdings Corporation
  • 201 Merritt 7
  • PO Box 4505
  • Norwalk
  • Connecticut
  • 06851-1056
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
XRXNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
XER2DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
XRXB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM USD1BRBRLAug 2012
XROXBASE (Buenos Aires Stock Exchange)CEDEAR EACH 1 REP 1 COM USD1.00ARARSApr 2019

Biography

Xerox Holdings Corporation designs, develops, and sells document management systems and solutions in the United States, Europe, Canada, and internationally. It offers intelligent workplace services; and di ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/27 05:56
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.