Xerox (XRX) AI Stock Analysis

• Market Cap: $531.00M
• Dividend Yield: 14.94%
• Average Volume (3M): 4.26M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.98
• Revenue Growth: -4.99%
• EPS Growth: -1016.81%
• Country: US
• Employees: 17,600
• Sector: Technology
• Sector Strength: 97
• Industry: Information Technology Services
• EPS (TTM): -0.64
• Shares Outstanding: 125,829,400
• 10 Day Avg. Volume: 5,317,786
• 30 Day Avg. Volume: 4,261,674
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.17
• P/FCF Ratio: 2.24
• Enterprise Value/Market Cap: 7.68
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 2.19
• Enterprise Value/Ebitda: -5.14
• 1Y Price Target: $4.50
• Price Target Upside: 3.45% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 48 Neutral
• Price Target: $4.00 ▼(-8.05% Downside)

Xerox's overall stock score reflects significant financial and valuation challenges, leading to a low rating. The company's strategic initiatives, including acquisitions, offer potential upside but are overshadowed by declining revenues and high financial leverage. The bearish technical indicators further contribute to a negative outlook.

Positive Factors

Acquisition Impact

The acquisition of ITsavvy broadens Xerox’s IT infrastructure capabilities and is expected to improve purchasing power and support margin expansion.

Cost Management

Project Reinvention is a multi-year strategy aimed at streamlining operations and driving long-term growth, with significant cost savings achieved and expected.

Profitability and Leverage

Leverage reduction will be fueled by higher profitability of Lexmark and a better balance sheet.

Negative Factors

Core Print Revenue

There is an expectation of a mid-single digit decline in core Print revenue, driven by secular headwinds such as the disintermediation of physical print by digital alternatives.

Earnings

Recent announcements from Xerox include an underwhelming earnings print and a cut to its dividend.

Strategic Complexity

The acquisition will raise many questions when put in context of the recent challenges and strategic actions taken by Xerox recently, including adding the complexity of a large acquisition to enact a transformation that was largely focused on reduction of complexity and costs.

Xerox Business Overview & Revenue Model

Company Description

Xerox Holdings Corporation (XRX) is a multinational corporation that specializes in printing and document management solutions. Founded in 1906, Xerox operates primarily in the technology sector, providing a range of products and services including digital printing systems, managed print services, and document management software. The company serves various industries, including education, healthcare, and government, with a focus on innovative solutions that enhance productivity and efficiency.

How the Company Makes Money

Xerox generates revenue through multiple streams, including the sale of hardware, such as printers and multifunction devices, and the sale of consumables like toner and ink. Managed print services, which involve optimizing a company's printing environment to reduce costs and increase efficiency, also contribute significantly to its revenue. Additionally, Xerox earns income from software solutions that improve document workflow and management. The company has formed strategic partnerships with other tech firms and service providers to enhance its offerings and access new markets, further bolstering its financial performance.

Xerox Financial Statement Overview

Summary

Xerox faces significant financial challenges with declining revenues and profitability. Despite a stable cash flow, high financial leverage and negative profit margins indicate operational inefficiencies. The financial performance needs improvement to enhance overall financial health.

Income Statement

Xerox has faced declining revenues and profitability, with significant drops in gross and net profit margins over the TTM. Revenue growth has been negative, indicating challenges in maintaining sales. The negative EBIT and EBITDA margins in the TTM highlight operational inefficiencies and financial challenges.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, reflecting a significant level of financial leverage. The equity ratio has decreased over time, indicating reduced equity in proportion to total assets. Return on equity is negative due to the net loss, showing a lack of profitability for shareholder investments.

Cash Flow

Xerox's cash flow remains relatively stable, with positive operating and free cash flow, despite negative net income. The operating cash flow to net income ratio is high, indicating strong cash generation relative to reported earnings losses. However, free cash flow growth has been negative, signifying potential challenges in sustaining cash flow levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.17B	6.22B	6.89B	7.11B	7.04B	7.02B
Gross Profit	1.86B	1.96B	2.31B	2.32B	2.40B	2.63B
EBITDA	-794.00M	-822.00M	307.00M	47.00M	695.00M	718.00M
Net Income	-1.42B	-1.32B	1.00M	-322.00M	-455.00M	192.00M
Balance Sheet
Total Assets	8.87B	8.37B	10.01B	11.54B	13.22B	14.74B
Cash, Cash Equivalents and Short-Term Investments	449.00M	576.00M	519.00M	1.04B	1.84B	2.63B
Total Debt	3.94B	3.59B	3.46B	3.96B	4.54B	4.79B
Total Liabilities	7.52B	7.06B	7.24B	7.97B	8.56B	8.93B
Stockholders Equity	1.34B	1.29B	2.75B	3.56B	4.65B	5.81B
Cash Flow
Free Cash Flow	302.00M	467.00M	649.00M	102.00M	561.00M	474.00M
Operating Cash Flow	367.00M	511.00M	686.00M	159.00M	629.00M	548.00M
Investing Cash Flow	-191.00M	-198.00M	-5.00M	-78.00M	-85.00M	-246.00M
Financing Cash Flow	263.00M	-271.00M	-1.20B	-822.00M	-1.31B	-416.00M

Xerox Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XRX, the sentiment is Negative. The current price of 4.35 is below the 20-day moving average (MA) of 4.90, below the 50-day MA of 5.14, and below the 200-day MA of 6.43, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 41.65 is Neutral, neither overbought nor oversold. The STOCH value of 35.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XRX.

Xerox Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WIT	71 Outperform	$28.89B	20.18	16.50%	3.03%	-1.95%	62.75%
DXC	68 Neutral	$2.37B	6.46	12.60%	―	-4.93%	497.03%
Sector *	61 Neutral	$36.32B	7.12	-7.26%	1.97%	7.79%	-9.36%
UIS	52 Neutral	$272.34M	―	192.24%	―	-1.53%	78.84%
CNDT	50 Neutral	$412.31M	82.79	2.21%	―	-14.36%	-73.74%
XRX	48 Neutral	$531.00M	―	-72.72%	14.94%	-4.99%	-1016.81%
KD	47 Neutral	$6.84B	24.20	26.55%	―	-3.44%	―

Xerox Corporate Events

Xerox Shareholders Approve Key Proposals at Annual Meeting

On May 21, 2025, Xerox Holdings Corporation held its annual meeting where shareholders approved several key proposals. These included the election of directors, the ratification of PricewaterhouseCoopers LLP as the independent auditor for 2025, and the advisory approval of the 2024 compensation for named executive officers. Additionally, an amendment to the 2024 Equity and Performance Incentive Plan was approved, indicating continued support for the company’s strategic compensation initiatives.

The most recent analyst rating on (XRX) stock is a Sell with a $11.00 price target. To see the full list of analyst forecasts on Xerox stock, see the XRX Stock Forecast page.