Xerox (XRX) AI Stock Analysis

• Market Cap: $664.17M
• Dividend Yield: 9.47%
• Average Volume (3M): 3.47M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.72
• Revenue Growth: -7.49%
• EPS Growth: -575.59%
• Country: US
• Employees: 17,600
• Sector: Technology
• Sector Strength: 86
• Industry: Information Technology Services
• EPS (TTM): -0.06
• Shares Outstanding: 125,789,540
• 10 Day Avg. Volume: 3,350,413
• 30 Day Avg. Volume: 3,467,272
• PEG Ratio: 0.42
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.33
• Enterprise Value/Market Cap: 7.47
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 2.55
• Enterprise Value/Ebitda: -2.17
• 1Y Price Target: $5.50
• Price Target Upside: 4.17% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 55 Neutral
• Price Target: $5.50 ▲(4.17%Upside)

Xerox's stock score reflects significant financial challenges, including declining revenues and profitability, which are only partially offset by positive cash flow and strategic progress. While technical analysis shows mixed signals, valuation metrics suggest potential undervaluation, appealing to income-focused investors. The earnings call provides a balanced view with strategic initiatives, but financial stress remains a key concern.

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 is a global leader in print and digital document solutions. The company operates primarily in the technology and managed services sectors, focusing on the design, development, and sale of document management systems and services. Xerox offers a wide range of products, including multifunction printers, production printers, and digital printing presses, along with software solutions and managed print services that enhance business productivity and document workflows.

How the Company Makes Money

Xerox generates revenue through several key streams. The primary source of income is the sale of hardware, including printers and copiers, to businesses and consumers worldwide. In addition to hardware sales, Xerox earns significant revenue from its managed print services, which involve managing and optimizing a company's print infrastructure to improve efficiency and reduce costs. The company also provides software solutions that help organizations digitize and automate their document workflows. Furthermore, Xerox benefits from long-term service contracts and post-sale services, such as maintenance, supplies, and equipment leasing. Strategic partnerships and collaborations with technology companies enhance Xerox's offerings, contributing to its overall revenue.

Xerox Financial Statement Overview

Summary

Xerox is experiencing financial difficulties with declining revenues, negative net income, and high leverage, indicating substantial financial challenges. Positive cash flow is present but declining, reflecting liquidity constraints.

Income Statement

Xerox's income statement shows a concerning trend with declining revenues and negative net income. The TTM (Trailing-Twelve-Months) data indicates a significant negative EBIT and EBITDA margin, highlighting operational challenges. Despite a slight gross profit margin, the overall profitability and revenue growth are negative, reflecting financial stress.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating substantial leverage, which poses financial risk. The equity ratio has also diminished over time, signaling reduced financial stability. While the company maintains some assets, the declining stockholders' equity suggests weakened financial health.

Cash Flow

Xerox's cash flow demonstrates moderate performance with positive free cash flow, albeit with declining growth. The operating cash flow to net income ratio is favorable, indicating effective cash generation relative to profits. However, the overall cash flow trend is declining, reflecting potential liquidity constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.18B	6.22B	6.89B	7.11B	7.04B	7.02B
Gross Profit	1.94B	1.96B	2.31B	2.32B	2.40B	2.63B
EBITDA	-731.00M	-822.00M	307.00M	47.00M	695.00M	718.00M
Net Income	-1.30B	-1.32B	1.00M	-322.00M	-455.00M	192.00M
Balance Sheet
Total Assets	8.21B	8.37B	10.01B	11.54B	13.22B	14.74B
Cash, Cash Equivalents and Short-Term Investments	336.00M	576.00M	519.00M	1.04B	1.84B	2.63B
Total Debt	3.30B	3.59B	3.46B	3.96B	4.54B	4.79B
Total Liabilities	6.93B	7.06B	7.24B	7.97B	8.56B	8.93B
Stockholders Equity	1.27B	1.29B	2.75B	3.56B	4.65B	5.81B
Cash Flow
Free Cash Flow	467.00M	467.00M	649.00M	102.00M	561.00M	474.00M
Operating Cash Flow	501.00M	511.00M	686.00M	159.00M	629.00M	548.00M
Investing Cash Flow	-175.00M	-198.00M	-5.00M	-78.00M	-85.00M	-246.00M
Financing Cash Flow	-691.00M	-271.00M	-1.20B	-822.00M	-1.31B	-416.00M

Xerox Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.28
• 50DMA: Positive
• 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 5.28 is below the 20-day moving average (MA) of 5.28, above the 50-day MA of 5.03, and below the 200-day MA of 7.20, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 50.57 is Neutral, neither overbought nor oversold. The STOCH value of 38.05 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
MGIC	78 Outperform	$894.10M	23.80	13.87%	3.59%	8.75%	5.17%
VRNT	69 Neutral	$1.13B	24.18	5.32%	―	-2.09%	76.96%
CNDT	57 Neutral	$427.23M	1.93	30.92%	―	-14.38%	―
XRX	55 Neutral	$664.17M	―	-67.27%	9.47%	-7.49%	-575.59%
UIS	53 Neutral	$319.09M	―	192.24%	―	-1.72%	82.15%
CGNT	51 Neutral	$655.52M	―	-4.06%	―	―	―
Sector *	49 Neutral	C$2.90B	2.14	-80.91%	2.95%	6.62%	-18.96%

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.