Xerox (XRX) AI Stock Analysis

• Market Cap: $500.80M
• Dividend Yield: 16.97%
• Average Volume (3M): 4.64M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.00
• Revenue Growth: -4.99%
• EPS Growth: -1016.81%
• Country: US
• Employees: 17,600
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.64
• Shares Outstanding: 125,829,400
• 10 Day Avg. Volume: 4,299,075
• 30 Day Avg. Volume: 4,639,204
• 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: 8.14
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 2.19
• Enterprise Value/Ebitda: -5.14
• 1Y Price Target: $4.50
• Price Target Upside: 17.49% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 48 Neutral
• Price Target: $4.00 ▲(4.44% Upside)

Xerox's overall stock score reflects significant financial challenges, bearish technical indicators, and a difficult valuation environment. The positive impact of the Lexmark acquisition and IT Solutions growth provides some optimism, but operational inefficiencies and leverage issues remain critical concerns.

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 Synergies

Xerox anticipates realizing over $15 million in cost synergies from the ITsavvy acquisition, with enhanced cross-selling opportunities adding significant value to the pipeline.

Strategic Initiatives

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

Negative Factors

Earnings and Dividend

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

Free Cash Flow Expectations

Ongoing restructuring, cost reductions, and declining core print trends are negatively impacting prior free cash flow expectations.

Market Decline

The core print market is expected to continue declining with a compound annual growth rate of approximately -3% through 2028.

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 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: 3.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 3.83 is below the 20-day moving average (MA) of 4.00, below the 50-day MA of 4.77, and below the 200-day MA of 6.13, indicating a bearish trend. The MACD of -0.26 indicates Negative momentum. The RSI at 39.26 is Neutral, neither overbought nor oversold. The STOCH value of 64.14 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	73 Outperform	$29.62B	20.78	16.50%	3.00%	-1.95%	35.65%
DXC	71 Outperform	$2.59B	6.98	12.60%	―	-4.93%	497.03%
Sector *	61 Neutral	$35.45B	8.20	-10.60%	1.91%	8.56%	-9.51%
UIS	55 Neutral	$278.76M	―	192.24%	―	-1.53%	78.84%
CNDT	54 Neutral	$439.17M	89.29	2.21%	―	-14.36%	-73.74%
KD	48 Neutral	$7.35B	25.99	26.55%	―	-3.44%	―
XRX	48 Neutral	$500.80M	―	-72.72%	16.97%	-4.99%	-1016.81%

Xerox Corporate Events

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.

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.