XRX : NYSE : Technology
$6.92 | %
Today's Range: 6.9 - 6.99
Avg. Daily Volume: 9907000.0
04/21/17 - 4:00 PM ET

Financial Analysis


XEROX CORP's gross profit margin for the fourth quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Sales and net income fell significantly, underperforming compared to the average company in its industry. XEROX CORP has weak liquidity. Currently, the Quick Ratio is 0.97 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 46.75% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)2734.04653.0
EBITDA ($mil)452.0664.0
EBIT ($mil)315.0384.0
Net Income ($mil)181.0271.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)2223.01468.0
Total Assets ($mil)18145.024817.0
Total Debt ($mil)6316.07367.0
Equity ($mil)5017.09423.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin44.0436.34
EBITDA Margin16.5314.27
Operating Margin11.528.25
Sales Turnover0.860.73
Return on Assets3.031.9
Return on Equity10.55.6
Debt Q4 FY16 Q4 FY15
Current Ratio1.51.27
Debt/Capital0.560.44
Interest Expense0.088.0
Interest Coverage0.04.36


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)1014.381012.84
Div / share0.080.07
EPS0.170.27
Book value / share4.959.3
Institutional Own % n/a n/a
Avg Daily Volume1.3706964E77502672.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 17.16 for the Computers & Peripherals industry and a significant discount compared to the S&P 500 average of 26.53. To use another comparison, its price-to-book ratio of 1.52 indicates a discount versus the S&P 500 average of 2.96 and a significant discount versus the industry average of 4.91. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, XEROX CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
XRX 14.48 Peers 17.16   XRX 7.50 Peers 10.79

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

XRX is trading at a discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

XRX is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
XRX 8.72 Peers 16.83   XRX 0.32 Peers 2.18

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

XRX is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

XRX trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
XRX 1.52 Peers 4.91   XRX 8.33 Peers -10.61

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

XRX is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

XRX is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
XRX 0.49 Peers 2.84   XRX -14.04 Peers 6.79

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

XRX is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

XRX significantly trails its peers on the basis of sales growth

 

 

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