Xerox logged a -0.7% change during today's afternoon session, and is now trading at a price of $15.1 per share.
Xerox returned losses of -17.2% last year, with its stock price reaching a high of $19.4 and a low of $11.8. Over the same period, the stock underperformed the S&P 500 index by -13.0%. As of April 2023, the company's 50-day average price was $15.26. Xerox Holdings Corporation, a workplace technology company, designs, develops, and sells document management systems and solutions in the Americas, Europe, the Middle East, Africa, India, and internationally. Based in Norwalk, CT, the mid-cap Technology company has 20,500 full time employees. Xerox has offered a 6.6% dividend yield over the last 12 months.
The Company's Revenues Are Declining:
|Net Income (MM)||$1,353||$192||-$455||-$322|
|Net Interest Income||-$89,000||-$80,000||-$92,000||-$80,000|
|Depreciation & Amort.||-$430,000||-$368,000||-$327,000||-$270,000|
|Earnings Per Share||$5.8||$0.84||-$2.56||-$1.32|
|Diluted Shares (MM)||222||209||183||157|
|Free Cash Flow (MM)||$1,268||$474||$561||$102|
|Capital Expenditures (MM)||-$65||-$74||-$68||-$57|
|Net Current Assets (MM)||-$3,099||-$3,148||-$3,855||-$4,073|
|Long Term Debt||$3,233,000||$4,050,000||$3,596,000||$2,866,000|
|Net Debt / EBITDA||0.75||2.58||-45.4||107.24|
Xerox does not have a meaningful trailing P/E ratio since its earnings per share are currently in the red. Based on its EPS guidance of $1.71, the company has a forward P/E ratio of 8.9. In comparison, the average P/E ratio for the Technology sector is 27.16. On the other hand, the market is undervaluing Xerox in terms of its equity because its P/B ratio is 0.69. In comparison, the sector average is 6.23. In conclusion, Xerox's impressive cash flow trend, decent P/B ratio, and reasonable use of leverage demonstrate that the company may still be fairly valued — despite its elevated earnings multiple.
Analysts Give Xerox an Average Rating of Sell:
The 4 analysts following Xerox have set target prices ranging from $9.0 to $17.0 per share, for an average of $13.5 with a underperform rating. As of April 2023, the company is trading 13.0% away from its average target price, indicating that there is an analyst belief that shares are overpriced.
Xerox has an average amount of shares sold short because 6.8% of the company's shares are sold short. Institutions own 83.4% of the company's shares, and the insider ownership rate stands at 5.7%, suggesting a decent amount of insider shareholders. The largest shareholder is Icahn, Carl, C., whose 19% stake in the company is worth $517,104,254.