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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Western Digital Corp.

Arista Networks, Inc.

Extreme Networks, Inc.

NetApp, Inc.

ADTRAN Holdings, Inc.

Seagate Technology Holdings Plc

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)

With a fall in Operating Profit of -21.46%, the company declared Very Negative results in Jun 25

The company has declared negative results for the last 6 consecutive quarters
PRE-TAX PROFIT(Q) At USD -49 MM has Fallen at -130.59%
NET PROFIT(Q) At USD -95 MM has Fallen at -53.37%
ROCE(HY) Lowest at -72.72%

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 -70.20%, its profits have fallen by -232.8%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -70.20% 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.

-68.47%

-1.23

69.50%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.98%

EBIT Growth (5y)

-29.10%

EBIT to Interest (avg)

2.55

Debt to EBITDA (avg)

5.18

Net Debt to Equity (avg)

2.36

Sales to Capital Employed (avg)

1.16

Tax Ratio

14.56%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

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

0.52

EV to EBIT

22.44

EV to EBITDA

8.35

EV to Capital Employed

0.86

EV to Sales

0.59

PEG Ratio

Dividend Yield

20.09%

ROCE (Latest)

3.83%

ROE (Latest)

-19.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

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

1What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 3.96 times

-30What is not working for the Company

PRE-TAX PROFIT(Q)

At USD -49 MM has Fallen at -130.59%

NET PROFIT(Q)

At USD -95 MM has Fallen at -53.37%

ROCE(HY)

Lowest at -72.72%

DEBT-EQUITY RATIO (HY)

Highest at 238.47 %

INTEREST COVERAGE RATIO(Q)

Lowest at 156.36

RAW MATERIAL COST(Y)

Grown by 13.69% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.5 times

DIVIDEND PER SHARE(HY)

Lowest at USD 3.96

INTEREST(Q)

Highest at USD 55 MM

Here's what is working for Xerox Holdings Corp.

Debtors Turnover Ratio

Highest at 3.96 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Pre-Tax Profit

At USD -49 MM has Fallen at -130.59%

over average net sales of the previous four periods of USD -21.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -95 MM has Fallen at -53.37%

over average net sales of the previous four periods of USD -61.94 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

At USD 55 MM has Grown at 66.67%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 156.36

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 238.47 % 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

Interest

Highest at USD 55 MM

in the last five periods and Increased by 66.67% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Inventory Turnover Ratio

Lowest at 5.5 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend per share

Lowest at USD 3.96

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (USD)

Raw Material Cost

Grown by 13.69% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales