Xerox (XRX) shares moved -23.4% over the last 52 weeks, with a high of $24.14 and a low of $11.8. During this time, the stock lagged the S&P 500 index by -7.6%. Xerox Holdings Corporation, a workplace technology company, designs, develops, and sells document management systems and solutions in the United States, Europe, Canada, and internationally. The mid-cap Technology company has 21,200 full time employees and is based in Norwalk, CT. Xerox has returned a 6.3% dividend yield over the last 12 months.
Snapshot of the Company's Income Statement, Balance Sheet, and Cash Flow:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | |
|---|---|---|---|
| Revenue (MM) | $9,066 | $7,022 | $7,038 |
| Revenue Growth | n/a | -22.55% | 0.23% |
| Gross Margins | 40.3% | 37.4% | 34.1% |
| Gross Margins Growth | n/a | -7.2% | -8.82% |
| Operating Margins | 12.6% | 5.9% | 4.6% |
| Operating Margins Growth | n/a | -53.17% | -22.03% |
| Earnings Per Share | $5.8 | $0.84 | -$2.56 |
| EPS Growth | n/a | -85.52% | -404.76% |
| Free Cash Flow (MM) | $1,268 | $474 | $561 |
| FCF Growth | n/a | -62.62% | 18.35% |
| Capital Expenditures (MM) | -$65 | -$74 | -$68 |
| Net Debt / EBITDA | 1.04 | 2.3 | 3.37 |
Basic Valuation Metrics:
Compared to the Technology sector's average of 26.5, Xerox has a trailing twelve month price to earnings (P/E) ratio of -4.8 and, based on its Eps guidance of 1.93, an expected P/E ratio of 8.1. Xerox's price to book (P/B) ratio is 0.7 compared to its sector average of 5.57.
Sentiment Overview:
6 analysts are following Xerox and have set target prices ranging from $10 to $15 per share. On average, they have given the company a rating of underperform. At today's prices, XRX is trading 24.94% away from its average analyst target price of $12.47 per share, implying future downside for the stock. The company has an average amount of shares sold short since 5.9% of the company's shares are tied to short positions. Institutions own 84.5% of Xerox's shares, while the insider ownership rate stands at 6.52%. The biggest shareholder is Icahn, Carl, C. with a 19.19% stake in the company worth approximately $540,562,276.00.
Overall, the Market Inference analysis team rates this stock as being fairly valued with poor growth indicators and mixed market sentiment.
