Xerox (XRX) AI Stock Analysis

• Market Cap: $386.30M
• Dividend Yield: 14.12%
• Average Volume (3M): 4.48M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.09
• Revenue Growth: 3.67%
• EPS Growth: 29.09%
• Country: US
• Employees: 17,600
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.20
• Shares Outstanding: 125,829,400
• 10 Day Avg. Volume: 5,618,974
• 30 Day Avg. Volume: 4,481,038
• 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: 11.97
• Enterprise Value/Revenue: 0.70
• Enterprise Value/Gross Profit: 1.82
• Enterprise Value/Ebitda: 51.95
• 1Y Price Target: $4.75
• Price Target Upside: 57.81% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.35
• Revenue Forecast (FY): $7.18B

• Rating: 46 Neutral
• Price Target: $3.00 ▼(-0.33% Downside)

Xerox's overall stock score is primarily impacted by financial performance challenges, including high leverage and negative profitability. Technical indicators suggest bearish momentum, while valuation shows mixed signals with a high dividend yield but negative P/E ratio. The earnings call provides some optimism with successful acquisitions and growth in IT Solutions, but macroeconomic challenges persist.

Positive Factors

Lexmark Acquisition

The Lexmark acquisition enhances Xerox's market position and is expected to generate over $250 million in cost synergies, strengthening its competitive advantage.

IT Solutions Growth

The growth in IT Solutions, with revenue and gross profit increasing over 150% YoY, diversifies Xerox's revenue streams and reduces reliance on traditional print services.

Cash Flow Stability

Stable cash flow generation provides Xerox with the resilience needed to navigate financial challenges and invest in strategic initiatives.

Negative Factors

Declining Revenue

Declining revenue highlights challenges in maintaining sales momentum, which can impact long-term growth and profitability.

Operating Margin Decline

A declining operating margin indicates rising costs or inefficiencies, which could undermine profitability and competitive positioning.

S&P Index Removal

Removal from the S&P SmallCap 600 may reduce visibility and investor interest, potentially affecting stock liquidity and market perception.

Xerox Business Overview & Revenue Model

Company Description

Xerox Holdings Corporation, a workplace technology company, designs, develops, and sells document management systems and solutions in the United States, Europe, Canada, and internationally. It offers workplace solutions, including desktop monochrome, and color and multifunction printers; digital printing presses and light production devices, and solutions; and digital services that leverage workflow automation, personalization and communication software, content management solutions, and digitization services. The company also provides graphic communications and production solutions; and IT services, end user computing devices, network infrastructure, communications technology, and a range of managed IT solutions, such as technology product support, professional engineering, and commercial robotic process automation. In addition, it provides FreeFlow a portfolio of software solutions for the automation and integration to the processing of print job comprises file preparation, final production, and electronic publishing; XMPie, a personalization and communication software that support the needs of omni-channel communications customers; DocuShare, a content management platform to capture, store, and share paper and digital content; and CareAR, an enterprise augmented reality business. Further, the company sells paper products and wide-format systems. The company sells its products and services directly to its customers through its direct sales force, as well as through independent agents, dealers, value-added resellers, systems integrators, and e-commerce marketplaces. Xerox Holdings Corporation was founded in 1906 and is headquartered in Norwalk, Connecticut.

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, particularly in terms of profitability and leverage. Despite positive revenue growth and cash flow generation, high debt levels and negative profitability metrics are concerning. The company needs to improve margins and reduce leverage to enhance financial stability.

Income Statement

Xerox's income statement reveals a challenging financial position with negative net income and declining EBIT and EBITDA margins in the TTM period. Despite a positive revenue growth rate of 7.01% TTM, the company struggles with profitability, as indicated by a negative net profit margin of -14.85%. The gross profit margin is relatively stable at 38.47%, but the overall profitability metrics suggest significant room for improvement.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 11.91 TTM, indicating significant leverage and potential financial risk. The return on equity is negative, reflecting ongoing losses. However, the equity ratio is relatively stable, suggesting some balance in asset financing. The high leverage poses a risk, but the company maintains a substantial asset base.

Cash Flow

Xerox's cash flow statement indicates a positive free cash flow growth rate of 17.22% TTM, which is a positive sign. The operating cash flow to net income ratio is low at 0.12, reflecting challenges in converting income into cash. However, the free cash flow to net income ratio is relatively strong at 0.86, suggesting efficient cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.61B	6.22B	6.89B	7.11B	7.04B	7.02B
Gross Profit	2.54B	1.96B	2.31B	2.32B	2.40B	2.63B
EBITDA	89.00M	-822.00M	307.00M	47.00M	695.00M	718.00M
Net Income	-977.00M	-1.32B	1.00M	-322.00M	-455.00M	192.00M
Balance Sheet
Total Assets	10.07B	8.37B	10.01B	11.54B	13.22B	14.74B
Cash, Cash Equivalents and Short-Term Investments	479.00M	576.00M	519.00M	1.04B	1.84B	2.63B
Total Debt	4.41B	3.59B	3.46B	3.96B	4.54B	4.79B
Total Liabilities	9.47B	7.06B	7.24B	7.97B	8.56B	8.93B
Stockholders Equity	579.00M	1.29B	2.75B	3.56B	4.65B	5.81B
Cash Flow
Free Cash Flow	326.00M	467.00M	649.00M	102.00M	561.00M	474.00M
Operating Cash Flow	410.00M	511.00M	686.00M	159.00M	629.00M	548.00M
Investing Cash Flow	-909.00M	-198.00M	-5.00M	-78.00M	-85.00M	-246.00M
Financing Cash Flow	455.00M	-271.00M	-1.20B	-822.00M	-1.31B	-416.00M

Xerox Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 3.01 is below the 20-day moving average (MA) of 3.26, below the 50-day MA of 3.56, and below the 200-day MA of 4.97, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 39.18 is Neutral, neither overbought nor oversold. The STOCH value of 10.62 is Positive, 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	73 Outperform	$28.13B	17.52	16.39%	3.17%	-1.97%	48.61%
KD	64 Neutral	$6.04B	15.63	35.51%	―	-1.90%	―
DXC	62 Neutral	$2.40B	6.74	12.33%	―	-4.13%	2143.48%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CNDT	48 Neutral	$360.18M	75.00	2.21%	―	-14.36%	-73.74%
XRX	46 Neutral	$386.30M	―	-93.23%	14.12%	3.67%	29.09%
UIS	38 Underperform	$240.26M	-2.85	―	―	-4.93%	18.65%

Xerox Corporate Events

Xerox Earnings Call: Growth Amid Challenges

Xerox Corporation’s recent earnings call painted a mixed picture of the company’s financial health and strategic direction. While there were positive developments such as the successful integration of recent acquisitions and growth in the IT Solutions segment, the company also faced significant challenges, including a decline in revenue, equipment sales, and macroeconomic uncertainties, notably the impact of tariffs.

Xerox Reports Q3 2025 Earnings Amid Strategic Progress

Xerox Corporation, a leader in document management and IT solutions, has released its third-quarter earnings report for 2025, highlighting significant financial and strategic developments. The company, which operates primarily in the technology sector, is known for its innovative solutions in printing and IT services, bolstered by its recent acquisition of Lexmark.

Xerox Reports Q3 2025 Earnings with Emphasis on Non-GAAP Metrics

Xerox Holdings Corporation announced their third quarter 2025 earnings, highlighting the use of non-GAAP financial measures to provide investors with a clearer understanding of their operational results. The release of these earnings is significant for stakeholders, as it offers insights into the company’s financial health and strategic direction, potentially impacting investor confidence and market positioning.

The most recent analyst rating on (XRX) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Xerox stock, see the XRX Stock Forecast page.

Xerox Announces Leadership Changes with New President

On August 11, 2025, Xerox Holdings Corporation announced that John Bruno would step down as President and Chief Operating Officer by August 31, 2025, to pursue a CEO role outside the company. Bruno will remain on the board and chair a new Integration Committee. Louie Pastor, currently Chief Administrative Officer and Global Head of Operations, will succeed Bruno as President and COO starting September 1, 2025. Additionally, Jacques-Edouard Gueden will become Chief Revenue Officer, leading Xerox’s print go-to-market units. These leadership changes are part of Xerox’s strategy to drive growth and transformation, with Pastor and Gueden expected to strengthen the company’s market position and operational efficiency.

The most recent analyst rating on (XRX) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Xerox stock, see the XRX Stock Forecast page.