NYSE:XRX

36.78
1.73 (4.94%)
Xerox Corporation is an American global corporation that sells document solutions and services, and document technology products in more than 160 countries.
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Analysis and Opinions about XRX-N

Signal
Opinion
Expert
HOLD
HOLD
August 15, 2019
It is a defensive company with a fantastic management team. They are in a no growth world for them. It is trading at 9 times earnings, massive free cash flow, huge share buybacks and increasing dividend. He thinks it will outperform in tough times.
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Xerox (XRX-N)
August 15, 2019
It is a defensive company with a fantastic management team. They are in a no growth world for them. It is trading at 9 times earnings, massive free cash flow, huge share buybacks and increasing dividend. He thinks it will outperform in tough times.
BUY
BUY
June 26, 2019
It's hitting new highs. Big cash flow, buying back stocks and raising their dividend. They're also developing new products, trading around 9x cash flow. All this in a slowly declining business. A defensive stock that he really likes.
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Xerox (XRX-N)
June 26, 2019
It's hitting new highs. Big cash flow, buying back stocks and raising their dividend. They're also developing new products, trading around 9x cash flow. All this in a slowly declining business. A defensive stock that he really likes.
COMMENT
COMMENT
September 26, 2018

Doesn't know the company well. There's support in the mid/low-$20's. $22-32 is the range. So you can buy and sell within that channel.

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Xerox (XRX-N)
September 26, 2018

Doesn't know the company well. There's support in the mid/low-$20's. $22-32 is the range. So you can buy and sell within that channel.

HOLD
HOLD
May 7, 2018

It is in play at present. There is a new CEO coming in. He is holding the stock because thinks there is more upside. We will know more on this transaction in the next few months.

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Xerox (XRX-N)
May 7, 2018

It is in play at present. There is a new CEO coming in. He is holding the stock because thinks there is more upside. We will know more on this transaction in the next few months.

PAST TOP PICK
PAST TOP PICK
April 9, 2018

(A Top Pick May 16, 2017, Down 0.4%) Earlier this year, they announced they would merge with Fuji Xerox, so Xerox will cease to exist later this year. Investors will get $9.80 dividend and own 49% of the new Fuji Xerox. This merger makes a lot of sense for them and good for shareholders. Though paper hasn't gone away, Xerox is now a tech company involved in document storage for large businesses. Photocopies are slowly declining, though colour copying is a boom for Xerox, given colour's high margins in colour cartridges. Xerox had trouble growing unlike Fuji Xerox.

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Xerox (XRX-N)
April 9, 2018

(A Top Pick May 16, 2017, Down 0.4%) Earlier this year, they announced they would merge with Fuji Xerox, so Xerox will cease to exist later this year. Investors will get $9.80 dividend and own 49% of the new Fuji Xerox. This merger makes a lot of sense for them and good for shareholders. Though paper hasn't gone away, Xerox is now a tech company involved in document storage for large businesses. Photocopies are slowly declining, though colour copying is a boom for Xerox, given colour's high margins in colour cartridges. Xerox had trouble growing unlike Fuji Xerox.

COMMENT
COMMENT
January 30, 2018

How do you analyse value when there is so much debt? He doesn’t like buying companies with too much debt. With this company, and a number of other companies like it, you have to separate the debt. There are 2 kinds of debt in this. A large chunk of it is related to financing customers who are buying their products. Like many, many companies, a large part of the debt is profitable debt where they make a spread when selling equipment. He calls this the financing debt, which is a profitable debt for them. Xerox is an investment company and their real debt is not actually that great, which is why it has an investment grade balance sheet. This is why you have to dig behind the numbers and look at the notes in the financial statements. He likes this stock. They are back to growth mode again, earnings have started to grow and free cash flow is growing. Companies have found they need document management, and even on the printing side the move to colour printing means they are making a ton of money on expensive ink cartridges.

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Xerox (XRX-N)
January 30, 2018

How do you analyse value when there is so much debt? He doesn’t like buying companies with too much debt. With this company, and a number of other companies like it, you have to separate the debt. There are 2 kinds of debt in this. A large chunk of it is related to financing customers who are buying their products. Like many, many companies, a large part of the debt is profitable debt where they make a spread when selling equipment. He calls this the financing debt, which is a profitable debt for them. Xerox is an investment company and their real debt is not actually that great, which is why it has an investment grade balance sheet. This is why you have to dig behind the numbers and look at the notes in the financial statements. He likes this stock. They are back to growth mode again, earnings have started to grow and free cash flow is growing. Companies have found they need document management, and even on the printing side the move to colour printing means they are making a ton of money on expensive ink cartridges.

WAIT
WAIT
May 17, 2017

He likes the Tech sector. This company is a turnaround situation. They’ve missed a number of quarters of earnings and guidance. There is a lot of hope that they can get things turned around, but it is a little bit of a challenged story. You need to give it a little more time. The risk outweighs the return.

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Xerox (XRX-N)
May 17, 2017

He likes the Tech sector. This company is a turnaround situation. They’ve missed a number of quarters of earnings and guidance. There is a lot of hope that they can get things turned around, but it is a little bit of a challenged story. You need to give it a little more time. The risk outweighs the return.

TOP PICK
TOP PICK
May 16, 2017

An amazing company. They recently spun off Conduint, their business process outsourcing business. The new management team is merging the old Xerox document management business with high technology. There has been a slew of new products out, aimed at the largest global companies to the small and midsized businesses. This has always been a big free cash flow generator. It is totally ignored by the street, which is why it is trading for less than 9X earnings. Dividend yield of 3.5%. (Analysts’ price target is $8.25.)

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Xerox (XRX-N)
May 16, 2017

An amazing company. They recently spun off Conduint, their business process outsourcing business. The new management team is merging the old Xerox document management business with high technology. There has been a slew of new products out, aimed at the largest global companies to the small and midsized businesses. This has always been a big free cash flow generator. It is totally ignored by the street, which is why it is trading for less than 9X earnings. Dividend yield of 3.5%. (Analysts’ price target is $8.25.)

COMMENT
COMMENT
January 17, 2017

This has basically split into 2, and he thinks that was wise corporate engineering, because investors are now going to be able to pick which part of this legacy they want to invest in. Thinks a lot of people are still digesting what the balance sheet looks like and what the outlook is. He doesn’t think they are overvalued.

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Xerox (XRX-N)
January 17, 2017

This has basically split into 2, and he thinks that was wise corporate engineering, because investors are now going to be able to pick which part of this legacy they want to invest in. Thinks a lot of people are still digesting what the balance sheet looks like and what the outlook is. He doesn’t think they are overvalued.

PAST TOP PICK
PAST TOP PICK
May 19, 2016

(Top Pick June 2/15, Down 18.99%) A big free cash flow generator and buying back a third of their shares over the last 5 years. We will see what the two pieces look like at the end of this year.

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Xerox (XRX-N)
May 19, 2016

(Top Pick June 2/15, Down 18.99%) A big free cash flow generator and buying back a third of their shares over the last 5 years. We will see what the two pieces look like at the end of this year.

COMMENT
COMMENT
May 11, 2016

This is getting very interesting. The company has been painted with the story that it is a failed company and nobody is buying Xerox machines anymore. They peaked in 2000 and has been straight down and flat lined since then. It looks like they have gotten to the point where revenues have finally stopped going down. Have around $17-$18 billions of revenues. They are in 2 divisions. Documentation of outsourcing and IT consulting. Hasn’t bought the stock yet, because he doesn’t entirely understand what they do.

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Xerox (XRX-N)
May 11, 2016

This is getting very interesting. The company has been painted with the story that it is a failed company and nobody is buying Xerox machines anymore. They peaked in 2000 and has been straight down and flat lined since then. It looks like they have gotten to the point where revenues have finally stopped going down. Have around $17-$18 billions of revenues. They are in 2 divisions. Documentation of outsourcing and IT consulting. Hasn’t bought the stock yet, because he doesn’t entirely understand what they do.

TOP PICK
TOP PICK
June 2, 2015

They made a large acquisition in the business process outsourcing business, and that is the margin driver for this company. Trading at around 9X its free excess cash flow. The stock price is not moving and the company is going to buy back about $1 billion worth of stock. If the stock price doesn’t move and the cash flow continues, they will be able to buy back every single share in the next 12 years. A compellingly cheap story. Yield of 2.44%.

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Xerox (XRX-N)
June 2, 2015

They made a large acquisition in the business process outsourcing business, and that is the margin driver for this company. Trading at around 9X its free excess cash flow. The stock price is not moving and the company is going to buy back about $1 billion worth of stock. If the stock price doesn’t move and the cash flow continues, they will be able to buy back every single share in the next 12 years. A compellingly cheap story. Yield of 2.44%.

PAST TOP PICK
PAST TOP PICK
October 15, 2014

(A Top Pick Sept 6/13. Up 28.18%.) Still likes this. It is a slow and steady cash flows business. Cash flow typically does well even when markets are selling off. This is the old photocopy business, but they have acquired a large services company, which is the real growth driver now. You won’t make a ton of money, but if you like slow and steady with a decent dividend that might go up, this is not bad.

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Xerox (XRX-N)
October 15, 2014

(A Top Pick Sept 6/13. Up 28.18%.) Still likes this. It is a slow and steady cash flows business. Cash flow typically does well even when markets are selling off. This is the old photocopy business, but they have acquired a large services company, which is the real growth driver now. You won’t make a ton of money, but if you like slow and steady with a decent dividend that might go up, this is not bad.

PAST TOP PICK
PAST TOP PICK
August 18, 2014

(A Top Pick July 2/13. Up 49.25%.) This is a free cash flow story, and they bought back a lot of shares and increased their dividend. Have struggled to generate revenue growth, so they are generating EPS through share buybacks. Feels this is now coming closer to his target valuation of $15 per share. Wouldn’t be a buyer of this today.

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Xerox (XRX-N)
August 18, 2014

(A Top Pick July 2/13. Up 49.25%.) This is a free cash flow story, and they bought back a lot of shares and increased their dividend. Have struggled to generate revenue growth, so they are generating EPS through share buybacks. Feels this is now coming closer to his target valuation of $15 per share. Wouldn’t be a buyer of this today.

COMMENT
COMMENT
June 9, 2014

Thinks this is fairly valued. He categorizes this as “old tech”. Newer technology stocks have higher embedded revenue growth. This one offers you a pretty decent dividend yield, and the valuation is okay, but as far as the old tech sector goes he prefers names that have a little bit of secular growth. Would much rather have something like Oracle (OCLN-N) or SAP AG (SAP-N) (?). This company is going to have to make a real effort to integrate their software with their hardware business, which continues to decline.

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Xerox (XRX-N)
June 9, 2014

Thinks this is fairly valued. He categorizes this as “old tech”. Newer technology stocks have higher embedded revenue growth. This one offers you a pretty decent dividend yield, and the valuation is okay, but as far as the old tech sector goes he prefers names that have a little bit of secular growth. Would much rather have something like Oracle (OCLN-N) or SAP AG (SAP-N) (?). This company is going to have to make a real effort to integrate their software with their hardware business, which continues to decline.

Andy Nasr

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Price
$12.920
Owned
Unknown
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