Xerox Holdings Corp. (XRX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Seagate Technology Holdings Plc

Extreme Networks, Inc.

Arista Networks, Inc.

NetApp, Inc.

Western Digital Corp.

ADTRAN Holdings, Inc.

Pure Storage, Inc.

Desktop Metal, Inc.

Stratasys Ltd.

Xerox Holdings Corp.

Immersion Corp.

Why is Xerox Holdings Corp. ?

Poor Management Efficiency with a low ROCE of 3.79%

The company has been able to generate a Return on Capital Employed (avg) of 3.79% signifying low profitability per unit of total capital (equity and debt)

The company has declared Negative results for the last 6 consecutive quarters

NET PROFIT(HY) At USD -773 MM has Grown at -386.16%
INTEREST(HY) At USD 160 MM has Grown at 153.97%
OPERATING CASH FLOW(Y) Lowest at USD 350 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -74.22%, its profits have fallen by -481.1%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -74.22% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Hardware)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Xerox Holdings Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Xerox Holdings Corp.

-74.39%

-1.20

76.82%

S&P 500

16.08%

0.62

19.30%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.01%

EBIT Growth (5y)

-174.00%

EBIT to Interest (avg)

2.55

Debt to EBITDA (avg)

5.18

Net Debt to Equity (avg)

2.36

Sales to Capital Employed (avg)

1.22

Tax Ratio

14.56%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

94.03%

ROCE (avg)

3.79%

ROE (avg)

4.95%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.31

EV to EBIT

-58.79

EV to EBITDA

14.92

EV to Capital Employed

0.90

EV to Sales

0.56

PEG Ratio

Dividend Yield

12.91%

ROCE (Latest)

-1.53%

ROE (Latest)

-147.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

No Trend

OBV

Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 4.42 times

NET SALES(Q)

Highest at USD 2,028 MM

OPERATING PROFIT(Q)

Highest at USD 151 MM

PRE-TAX PROFIT(Q)

At USD -57 MM has Grown at 44.12%

NET PROFIT(Q)

At USD -69 MM has Grown at 71.07%

-25What is not working for the Company

NET PROFIT(HY)

At USD -773 MM has Grown at -386.16%

INTEREST(HY)

At USD 160 MM has Grown at 153.97%

OPERATING CASH FLOW(Y)

Lowest at USD 350 MM

ROCE(HY)

Lowest at -105.65%

DEBT-EQUITY RATIO (HY)

Highest at 567.63 %

CASH AND EQV(HY)

Lowest at USD 1,021 MM

DIVIDEND PER SHARE(HY)

Lowest at USD 4.42

Here's what is working for Xerox Holdings Corp.

Debtors Turnover Ratio

Highest at 4.42 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Sales

Highest at USD 2,028 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Net Sales

At USD 2,028 MM has Grown at 22.78%

over average net sales of the previous four periods of USD 1,651.75 MM

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 151 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Pre-Tax Profit

At USD -57 MM has Grown at 44.12%

over average net sales of the previous four periods of USD -102 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

At USD -69 MM has Grown at 71.07%

over average net sales of the previous four periods of USD -238.5 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Here's what is not working for Xerox Holdings Corp.

Interest

At USD 160 MM has Grown at 153.97%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Cash Flow

Lowest at USD 350 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Highest at 567.63 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Cash and Eqv

Lowest at USD 1,021 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Dividend per share

Lowest at USD 4.42

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (USD)