XRX : NYSE : Technology
$9.32 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 7792400.0
12/05/16 - 4:00 PM ET

Financial Analysis


XEROX CORP's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. XEROX CORP has weak liquidity. Currently, the Quick Ratio is 0.91 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.49% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)4212.04449.0
EBITDA ($mil)586.0661.0
EBIT ($mil)311.0344.0
Net Income ($mil)181.0-34.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)1423.0804.0
Total Assets ($mil)24642.024946.0
Total Debt ($mil)7379.07576.0
Equity ($mil)9603.09462.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin36.4937.06
EBITDA Margin13.9114.85
Operating Margin7.387.73
Sales Turnover0.710.74
Return on Assets2.61.43
Return on Equity6.575.79
Debt Q3 FY16 Q3 FY15
Current Ratio1.211.3
Debt/Capital0.430.44
Interest Expense81.088.0
Interest Coverage3.843.91


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)1013.781012.4
Div / share0.080.07
EPS0.17-0.04
Book value / share9.479.35
Institutional Own % n/a n/a
Avg Daily Volume7250995.05666900.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 27.05 for the IT Services industry and a discount compared to the S&P 500 average of 25.16. For additional comparison, its price-to-book ratio of 1.01 indicates a significant discount versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 7.90. 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 15.45 Peers 27.05   XRX 6.93 Peers 19.72

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

XRX is trading at a significant 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 8.33 Peers 20.95   XRX 0.12 Peers 1.58

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 1.01 Peers 7.90   XRX 31.91 Peers 12.58

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 0.55 Peers 5.20   XRX -5.45 Peers 16.45

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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