Xerox (XRX) AI Stock Analysis

• Market Cap: $380.28M
• Dividend Yield: 13.89%
• Average Volume (3M): 4.44M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.11
• 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: 128,040,010
• 10 Day Avg. Volume: 4,997,357
• 30 Day Avg. Volume: 4,440,455
• 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: 13.02
• Enterprise Value/Revenue: 0.75
• Enterprise Value/Gross Profit: 1.95
• Enterprise Value/Ebitda: 55.63
• 1Y Price Target: $4.25
• Price Target Upside: 54.55% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.25
• Revenue Forecast (FY): $7.11B

• Rating: 42 Neutral
• Price Target: $2.50 ▼(-9.09% Downside)

Xerox's overall stock score is primarily impacted by its financial performance and technical analysis. The company's high debt levels and negative profitability metrics are significant concerns. Additionally, the bearish technical indicators reflect weak market sentiment. While the earnings call provided some positive insights into future synergies and IT Solutions growth, the overall outlook remains cautious due to ongoing financial and market challenges.

Positive Factors

Successful Integration of Acquisitions

The successful integration of Lexmark and ITsavvy enhances Xerox's operational efficiency and cost savings, contributing to long-term financial stability and competitive advantage.

IT Solutions Business Growth

Growth in the IT Solutions segment indicates strong demand and successful market penetration, supporting Xerox's strategic shift towards digital services and long-term revenue expansion.

Free Cash Flow Improvement

Improved free cash flow enhances Xerox's ability to invest in growth initiatives and manage debt, contributing to financial resilience and sustainability.

Negative Factors

High Debt Levels

High debt levels pose financial risks, limiting Xerox's flexibility to invest in growth and potentially affecting its long-term financial health.

Revenue Decline

Declining revenue and margins reflect challenges in maintaining market share and profitability, which could impact Xerox's competitive position and growth prospects.

Challenges with Equipment Sales

Decreasing equipment sales highlight shifting market dynamics and demand challenges, potentially affecting Xerox's core business and revenue streams.

Xerox Business Overview & Revenue Model

Company Description

Xerox Holdings Corporation (XRX) is a global leader in document management technology and services, specializing in providing printing and copying solutions, as well as digital services for businesses of all sizes. The company operates in various sectors, including printing technology, managed print services, and document outsourcing, offering a wide range of products such as multifunction printers, production printers, and software solutions. Xerox's core offerings emphasize enhancing productivity and streamlining workflows, with a focus on automation and digital transformation.

How the Company Makes Money

Xerox generates revenue through several key streams, primarily from its hardware sales, which include printers and copiers, and from its services segment, which encompasses managed print services and document outsourcing. The company also earns income from software solutions that improve workflow and document management. Additionally, Xerox has established strategic partnerships with other technology firms to enhance its service offerings, allowing it to penetrate new markets and expand its customer base. Recurring revenue from supplies, maintenance contracts, and support services further contributes to its financial sustainability, providing a stable income stream over time.

Xerox Financial Statement Overview

Summary

Xerox faces significant financial challenges, particularly in terms of profitability and leverage. Despite a positive revenue growth rate and cash flow generation, high debt levels and negative profitability metrics highlight areas of concern. The company needs to focus on improving margins and reducing 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	37.00M	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: 2.75
• 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 2.75 is below the 20-day moving average (MA) of 3.18, below the 50-day MA of 3.45, and below the 200-day MA of 4.79, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 32.98 is Neutral, neither overbought nor oversold. The STOCH value of 10.25 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	$28.88B	17.65	16.39%	3.11%	-1.97%	48.61%
KD	64 Neutral	$5.88B	15.16	35.51%	―	-1.90%	―
DXC	62 Neutral	$2.40B	6.58	12.33%	―	-4.13%	2143.48%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CNDT	44 Neutral	$292.02M	―	-15.87%	―	-12.45%	-142.77%
XRX	42 Neutral	$380.28M	―	-93.23%	13.89%	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.