NYSE:XRX
$9.87
(3/12 2:32PM)
-1.3%
| Open | $10 |
Mkt Cap | $8.7 Billion |
| High | $10 |
52Wk High | $10.07 |
| Low | $9.81 |
52Wk Low | $4.50 |
| Volume | 10.8 Million |
Avg Vol 10D | 12.1 Million |
Ockham's Rating/Recommendation Summary
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XRX Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at XRX through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 1.01x and 0.61x respectively.
Utilizing this range we can see that XRX’s current Price to Sales per share ratio of 0.59x is significantly below its average levels historically. In fact, with a current price of $9.87, XRX is a full 28% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for XRX.
XRX Cash Earnings
As the old saying goes, "Cash is King!" We look at reported Cash Earnings, but the main emphasis of our analysis involves stripping out non-cash events such as depreciation from our cash earnings analysis. This helps us view the cash flows more clearly. Nevertheless, an analysis of Cash Earnings (both reported and otherwise) is absolutely pivotal to assessing a company's value, and currently XRX is significantly below its historical average multiple of Cash Earnings. Looking at the last 10 years we can get a good understanding of what investors have grown to expect from XRX. For example, XRX's Cash Earnings ratio per share has fluctuated between 6.63 and 12.01 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where XRX is with respect to prior business periods.
So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for XRX? From the Ockham perspective, we are looking specifically at XRX to see if the market is recognizing the huge disparity between XRX's past stock price to Cash Earnings ratio to today's levels. At a difference of 23% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at XRX. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.
XRX Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.
Comparable to our analysis of Sales and Cash Earnings per share, we examine dividend yields from XRX against the historic high and low levels over an available data range. Because XRX has an established history of paying a dividend to shareholders, there is value in comparing recent dividends to historical dividends. In XRX’s case, the estimated annual dividend is $0.17 producing a current dividend yield of 1.72%. The highest dividend yield from XRX in recent history was 4.12% while the lowest dividend yield was 0.00%. It is never a good sign for a company to pay significantly lower dividends, in this case 16.50% below the median yield. Although, dividends are a relatively small portion of our analysis framework, we still see this as a negative factor.
The Chief Executive of XRX Was Discussed on The Call
Xerox Corporation's CEO is obviously vital to his company, so we believe any news covering him is worth knowing for investors.
Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards XRX and think that it will generally perform in-line with the S&P 500. In comparison to the other stocks that we follow, Xerox Corporation has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days. The Ockham valuation currently has a Fairly Valued stance on XRX because it trades within the price range that we would expect given current market conditions and fundamentals.
“… Principal national advisory committee on international trade and i've named jim mckernie, the president and ceo of boeing as its chair with ursula burn, the ceo of XEROX as vice ... …”
XRX's EPS discussed on Seeking Alpha Wall St Breakfast
XRX's earnings per share was discussed on Seeking Alpha Wall St Breakfast which means there is something significant going on. Profits are the metric we pay the most attention to in our methodology.
A significant sell off of $0.77 is underway right now, so investors in XRX should pay close attention to the news. Xerox Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. Ranking all stocks in terms of news coverage offers some interesting data. In the case of XRX, it is getting significantly more attention in recent news coverage than we are used to seeing. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral.
“… XEROX sues Google, Yahoo over search. XEROX (XRX) filed suit against Google (GOOG) and Yahoo (YHOO) last Friday, accusing them of violating XEROX's patents related to internet ... …”
News Breaking on Xerox Corporation on Power Lunch
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on XRX from Power Lunch.
Xerox Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. We noticed recently that in comparison to all other stocks we analyze in the news; XRX has received less coverage from the financial media in business television and blogs.
“… Among those attending ceos of verizon, kodak, walmart, XEROX, and pepsico. > > before we take a quick break, update on the markets which have been under a lot of pressure in ... …”
Xerox Corporation News Appeared on Squawk On The Street
News has broken via the television and viral blogs regarding XRX, so investors should take an interest in learning what was said.
The Ockham valuation currently has a Fairly Valued stance on XRX because it trades within the price range that we would expect given current market conditions and fundamentals. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards XRX and think that it will generally perform in-line with the S&P 500. In comparison to the other stocks that we follow, Xerox Corporation has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days.
“… buying technology. XEROX, very strong in an otherwise weak sector. June per up over 2% in a very strong check. Keep an eye. …”
See Who is Talking About News from XRX on Squawk On The Street
The latest news from Squawk On The Street on XRX is available through Ockham's news analytics platform RazorWire.
Xerox Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. We noticed recently that in comparison to all other stocks we analyze in the news; XRX has received less coverage from the financial media in business television and blogs.
“… You've got XEROX now launching its, or ibm rather launching yet another of its own chips. Let's head over to sharon at the nymex. > > …”
Power Lunch: What is Happening with Xerox Corporation Now?
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on XRX from Power Lunch.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, XRX has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on XRX. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Xerox Corporation will perform just about the same as the index. Please be aware that XRX is trading off $0.55 today, and is clearly being affected by the latest news.
“… Well, as big as nordstrom's and mattel and XEROX. The stock is down about a three-month low here today. It's in the biotech index, in the nasdaq 100 n the midcap, the russell ... …”
Check Out Imus In The Morning and News on XRX
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on XRX from Imus In The Morning.
Xerox Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; XRX has received less coverage from the financial media in business television and blogs. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral.
“… imus: when I get to the office i'll send him a XEROX of my license. Bring it on. Little red neck hillbilly. Denise austin, coming up. …”
Power Lunch Has the Latest News on XRX
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Xerox Corporation.
We have recently (Saturday, January 16, 2010) downgraded this stock due to deteriorating fundamentals. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards XRX and think that it will generally perform in-line with the S&P 500. The Ockham valuation currently has a Fairly Valued stance on XRX because it trades within the price range that we would expect given current market conditions and fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Xerox Corporation has actually sunk a bit in comparison to the others.
“… Recall that back in september, XEROX announced its acquiring the company based on XEROX's strong performance in the market today. …”
XRX News Mentioned on Fox Business Recently
Xerox Corporation is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Fox Business.
The latest news on XRX has created quite a stir as the stock is trading $0.46 higher in today's session. Xerox Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; XRX has received less coverage from the financial media in business television and blogs. Due to deterioration in our valuation, we downgraded XRX as of Saturday, January 16, 2010. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral.
“… Look at XEROX. Cost-cutting boosting profits raising its forecast and stocks up 5%. Who would have thought? We know california is in crisis. The state has an ongoing deficit. …”
The Opening Bell on Fox Business: Speaks to M&A Activity and Xerox Corporation
RazorWire captured a discussion on The Opening Bell on Fox Business that contained talk of M&A activity and XRX was mentioned as well.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Xerox Corporation has actually sunk a bit in comparison to the others. The Ockham valuation currently has a Fairly Valued stance on XRX because it trades within the price range that we would expect given current market conditions and fundamentals. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards XRX and think that it will generally perform in-line with the S&P 500. We have recently (Saturday, January 16, 2010) downgraded this stock due to deteriorating fundamentals.
“… XEROX, let's go to stocks, companies that we've written off maybe a year or so again, not XEROX, earlier this week approved for acquisition of an afail yacht computer services, ... …”