Yearly Recap on Xerox (XRX)

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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.