Xerox Stock Analysis, Valuation (NYSE:XRX)

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$24.97 $0.3 (1.19%) XRX stock closing price Jul 16, 2018 (Closing)

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 2.9/5

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 9.3913 times the net income.
  • The Xerox stock currently trades at a price to earnings ratio of 7.2, compared to the sector average of 23.9. We rate this as a positive.
  • When compared with the Business Services sector average PS ratio of 1.6, the price-to-sales ratio of 0.6 for XRX stock is attractive.
  • The company has a healthy free cash flow margin of 9.2.

Should you sell XRX stock?

  • Xerox sales declined by -0.8% year on year in 2018-03.
  • Revenue declined at a CAGR of -14.4 over the last 5 years.
  • With a debt/equity ratio of 0.95, Xerox is highly leveraged in comparison to Business Services peers.
  • Xerox has a poor return on invested capital of 2.

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.