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

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Arista Networks, Inc.

ADTRAN Holdings, Inc.

Pure Storage, Inc.

NetApp, Inc.

Stratasys Ltd.

Desktop Metal, Inc.

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 10 consecutive quarters

NET PROFIT(9M) At USD -853 MM has Grown at -228.08%
INTEREST(HY) At USD 164 MM has Grown at 156.25%
OPERATING CASH FLOW(Y) Lowest at USD 169 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 -41.96%, its profits have fallen by -468.5%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -41.96% 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.

-41.96%

-0.90

92.77%

S&P 500

20.78%

1.56

13.28%

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)

-174.65%

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

99.30%

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

0.28

EV to EBIT

-56.55

EV to EBITDA

15.17

EV to Capital Employed

0.89

EV to Sales

0.56

PEG Ratio

Dividend Yield

14.20%

ROCE (Latest)

-1.58%

ROE (Latest)

-144.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

OBV

Bearish

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

6What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 4.66 times

RAW MATERIAL COST(Y)

Fallen by -1.09% (YoY

NET PROFIT(Q)

At USD -101 MM has Grown at 57.38%

-20What is not working for the Company

NET PROFIT(9M)

At USD -853 MM has Grown at -228.08%

INTEREST(HY)

At USD 164 MM has Grown at 156.25%

OPERATING CASH FLOW(Y)

Lowest at USD 169 MM

ROCE(HY)

Lowest at -117.3%

DEBT-EQUITY RATIO (HY)

Highest at 746.78 %

DIVIDEND PER SHARE(HY)

Lowest at USD 4.66

Here's what is working for Xerox Holdings Corp.

Debtors Turnover Ratio

Highest at 4.66 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 Profit

At USD -101 MM has Grown at 57.38%

over average net sales of the previous four periods of USD -237 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Raw Material Cost

Fallen by -1.09% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

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

Interest

At USD 164 MM has Grown at 156.25%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Cash Flow

Lowest at USD 169 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 746.78 % 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

Dividend per share

Lowest at USD 4.66

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (USD)