The company has 4.79
B in debt with debt to equity (D/E) ratio of 0.82, which is OK given its current industry classification. Xerox Corp has a current ratio of 2.28, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due.
Our trade advice module complements current
analysts and expert consensus on Xerox Corp. It analyzes the entity potential to grow using all fundamental, technical, and market related data available at the time.
We determine the current worth of Xerox Corp using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Xerox Corp based exclusively on its
fundamental and basic
technical indicators. By analyzing Xerox Corp's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
Xerox Corp's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Xerox Corp. We calculate exposure to Xerox Corp's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Xerox Corp's related companies.
Xerox Corp Investment Alerts
Xerox investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Xerox Corp performance across your portfolios.Please check all
investment alerts for Xerox
Xerox Corp Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Xerox value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Xerox Corp competition to find
correlations between indicators driving the intrinsic value of Xerox.
A Deeper Perspective
The entity reported the last year's revenue of 7.02
B. Total Income to common stockholders was 178
M with profit before taxes, overhead, and interest of 2.63
B.
| 2018 | 2019 | 2020 | 2021 (projected) |
Receivables | 2.6 B | 2.5 B | 2.06 B | 3.19 B | Inventories | 818 M | 694 M | 843 M | 970.42 M |
Margins Breakdown
Xerox profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Xerox Corp itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Xerox Corp profit margins.
| Operating Margin | 6.37 |
| EBITDA Margin | 10.69 |
| Gross Margin | 35.89 |
| Profit Margin | 3.19 |
Xerox Corp Earnings Before Interest Taxes and Depreciation Amortization EBITDA is fairly stable at the moment. Xerox Corp Earnings Before Interest Taxes and Depreciation Amortization USD is decreasing over the last 8 years. The current value of Xerox Corp Earnings Before Interest Taxes and Depreciation Amortization USD is 1,564,263,158. Furthermore, Xerox Corp Revenue Per Employee is increasing over the last 8 years. Xerox Corp Earnings Before Interest Taxes and Depreciation Amortization EBITDA is fairly stable at the moment. Xerox Corp Earnings Before Interest Taxes and Depreciation Amortization USD is decreasing over the last 8 years. The current value of Xerox Corp Earnings Before Interest Taxes and Depreciation Amortization USD is 1,564,263,158. Furthermore, Xerox Corp Revenue Per Employee is increasing over the last 8 years. The previous year's value of Xerox Corp Revenue Per Employee was 240,276.
Xerox technical analysis suggests possible turnaround
Xerox Corp current downside variance rises over 5.43. Xerox Corp currently demonstrates below-average downside deviation. It has Information Ratio of 0.01 and Jensen Alpha of 0.02. However, we advise investors to further question Xerox Corp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Xerox Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Xerox Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
The Bottom Line
While many other companies within the information technology services industry are still a little expensive, even after the recent corrections, Xerox Corp may offer a potential longer-term growth to investors. On the whole, as of the 20th of April 2021, our concluding 30 days buy-or-sell advice on the company is
Hold. We believe Xerox Corp is currently
overvalued with
below average odds of financial distress for the next two years.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Xerox Corp. Please refer to our
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