NEW YORK (TheStreet) -- Xerox Corp. (XRX) - Get Report  stock is up 0.43% to $9.27 in pre-market trading on Friday after the company announced it would separate into two public companies.

The split will create an $11 billion document technology company and a $7 billion business process outsourcing company, the Norwalk, CT-based company said in a statement this morning. 

The separation is projected to save both companies a total of $2.4 billion during the next three years, Xerox said. The split should be completed by the end of 2016.

Activist investor Carl Icahn, who owns a stake in Xerox, will appoint three board of directors to the business process outsourcing company's board.

Additionally, Xerox reported 2015 fourth quarter earnings of 32 cents per share, which topped analysts' forecasts for earnings of 28 cents per share. Revenue of $4.7 billion was in-line with analysts' estimates.

Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rates this stock as a "hold" with a ratings score of C. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

You can view the full analysis from the report here: XRX

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