Xerox Stock Analysis, Valuation (NYSE:XRX)

Add to My Stocks
$27.98 $0.21 (0.74%) XRX stock closing price May 21, 2018 (Closing)
Watch Robo Advisor Video of XRX Stock Analysis
Xerox
Updated on : May 21, 2018
previous close
XRX 28 (0%)
S&P 500 2733 (0%)
Closing Price On: May 21, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Business Services
Sector :
Business Services
5 Quarter Revenue
Revenue Growth
2018-Q1
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-14.4%
Operating Profit
Operating Margin:
9.9%
Sector Average:
8.4%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
5.49B
Debt/Equity Ratio:
 0.95
Compared to the industry
Cash Flow
Operating cash flow:
$216M
Net Income:
$23M
Dividend Yield
XRX dividend yield:
2.89%
PROS      CONS
Cash Flow
FCF Margin
PE Valuation
PS Valuation
Recent Growth
Long Term Growth
High Debt Burden
ROIC
ROE
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
XRX PS :
0.7
Industry PS :
1.6
Sector:   Business Services.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
2%
Return on Equity:
3.2%
Free Cash Flow Margin:
9.2%
Double Tap To Exit Full Screen
0:00
/

Xerox Stock Analysis

823 8 2

View the Xerox stock analysis video on Amigobulls. Our analyst opinion covering the buy and sell arguments for XRX stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Xerox Corp Stock Rating 2.6/5

Amigobulls XRX stock analysis uses latest quarter 2018 Q1 financial data like Xerox revenue growth, profit margins and cash flows. We compare Xerox valuation with its sector peers to gauge relative attractiveness of XRX stock. Based on a company's historical fundamentals we arrive at Xerox stock rating which is indicative of the company's financial performance.

Should you buy XRX stock?

  • The company has an operating cash flow which is 9.4 times the net income.
  • XRX stock is trading at an earnings multiple of 8 which is better than the industry average of 21.9.
  • When compared with the Business Services industry average PS ratio of 1.6, the price-to-sales ratio of 0.7 for XRX stock is attractive.
  • The company has a good Free Cash Flow (FCF) margin of 9.2%.

Should you sell XRX stock?

  • Xerox sales shrank by -0.8% year-over-year in 2018 Q1.
  • Revenue declined at a CAGR of -14.4% over the last 5 years.
  • Xerox is debt laden and has a high debt/equity ratio of  0.95.
  • Xerox has a low ROIC (Return on Invested Capital) of 2%.
  • Xerox has a low return on equity of 3.2% over the last twelve months.

Comments on this video and Xerox stock

Investors can use Amigobulls Xerox stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Among the financials of the company, Xerox revenue growth along with the profit or net income give a clear picture of the financial health. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Xerox stock.