Fact based stock research
Xerox (NYSE:XRX)

US98421M1062

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Xerox stock research in summary

news.xerox.cominvestors

ANALYSIS: With an Obermatt Combined Rank of 68 (better than 68% compared with investment alternatives), Xerox (Technology Hardware & Peripherals, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Xerox are a good value (attractively priced) with a consolidated Value Rank of 100 (better than 100% of alternatives), are safely financed (Safety Rank of 66, which means low debt burdens), but show below-average growth (Growth Rank of 13). ...read more

RECOMMENDATION: A Combined Rank of 68, is a buy recommendation based on Xerox's financial characteristics. As the company Xerox's key financial metrics exhibit good value (Obermatt Value Rank of 100) but low growth (Obermatt Growth Rank of 13) while being safely financed (Obermatt Safety Rank of 66), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 100% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	100
Growth Rank	13
Safety Rank	66
Combined Rank	68

Country	USA
Industry	Technology Hardware & Peripherals
Index	Artificial Intelligence, Dividends USA, Diversity USA, Moonshot Tech, Recycling, Robotics, S&P 500
Size class	X-Large

This stock has achievements: Top 10 Stock.

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Xerox

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	74	99	98	100
GROWTH
GROWTH	4	13	65	13
SAFETY
SAFETY	12	77	32	66
SENTIMENT
SENTIMENT	n/a	3	12	^new
360° VIEW
360° VIEW	n/a	43	52	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Xerox is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	74	99	98	100
GROWTH
GROWTH	4	13	65	13
SAFETY
SAFETY	12	77	32	66
COMBINED
COMBINED	14	82	79	68

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Xerox the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 100 (better than 100% compared with alternatives) for 2024, Xerox shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Xerox. Price-to-Sales is 96 which means that the stock price compared with what market professionals expect for future sales is lower than for 96% of comparable companies, indicating a good value for Xerox's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 100% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 82. Compared with other companies in the same industry, dividend yields of Xerox are expected to be higher than for 100% of all competitors (a Dividend Yield rank of 100). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 100, is a buy recommendation based on Xerox's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Xerox based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	53	89	85	96
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	60	89	85	100
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	61	82	89	82
DIVIDEND YIELD
DIVIDEND YIELD	91	99	100	100
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	74	99	98	100

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Xerox; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 13 (better than 13% compared with alternatives), Xerox shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Xerox. Only Capital Growth has a good rank of 95, which means that currently professionals expect the company to grow its invested capital more than 12% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 18 which means that currently professionals expect the company to grow less than 82% of its competitors. Profit Growth with a rank of 12 and Stock Returns with a rank of 5 are also low (below 95% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 13, is a sell recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for Xerox is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	9	6	4	18
PROFIT GROWTH
PROFIT GROWTH	10	18	83	12
CAPITAL GROWTH
CAPITAL GROWTH	n/a	64	97	95
STOCK RETURNS
STOCK RETURNS	29	49	59	5
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	4	13	65	13

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Xerox.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 66 (better than 66% compared with alternatives), the company Xerox has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Xerox is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Xerox. Refinancing is at 91, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 91% of its competitors. Liquidity is also good at 51, meaning the company generates more profit to service its debt than 51% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 22, which means the company has an above-average debt-to-equity ratio. It has more debt than 78% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 66 (better than 66% compared with alternatives), Xerox has a financing structure that is safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Xerox could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Xerox and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	6	30	28	22
REFINANCING
REFINANCING	61	100	57	91
LIQUIDITY
LIQUIDITY	20	53	43	51
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	12	77	32	66

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Xerox and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	1	1	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	75	71	^new
MARKET PULSE
MARKET PULSE	n/a	6	13	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	3	12	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Xerox.
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