XRX
Xerox Corp
TMT
02/04/2016
Presented
| Date | 02/02/2016 |
| Price | $7.16 |
| Market Cap | $7.22B |
| Ent Value | $17.51B |
| P/E Ratio | 30.86x |
| Book Value | $8.97 |
| Div Yield | 2.63% |
| Shares O/S | 836.94M |
| Ave Daily Vol | 10,565,312 |
| Short Int | 2.48% |
Current
| Price | $10.36 |
| Market Cap | $1.29B |
| Xerox Corp. provides business process and document management solutions. The company provides document technology, services, software and supplies for graphic communication and office printing environments of any size. It operates through three segments: Services, Document Technology and Other. The Services segment is comprised of business process outsourcing and document outsourcing. The Business process outsourcing provides multi-industry offerings such as customer care, transaction processing, finance and accounting, and human resources, as well as industry focused offerings in areas such as healthcare, transportation, financial services, retail and telecommunications. The Document outsourcing includes managed print services and communication and marketing services. The Document Technology segment includes the sale of products and supplies, as well as the associated technical service and financing of those products which are not related to document outsourcing contracts. The Document Technology business is centered around strategic product groups that share common technology, manufacturing and product platforms. The strategic product groups are: Entry, Mid-Range and High-End. The Other segment includes paper sales in developing market countries, wide-format systems, licensing revenue, Global Imaging Systems network integration solutions and non-allocated corporate items, including Other expenses, net. Xerox was founded in 1906 and is headquartered in Norwalk, CT. |
Please note, on January 03, 2017 shareholders of Xerox Inc (XRX) received 1 share of Conduent Incorporated (CNDT) for every 5 of Xerox Inc (XRX). Presented data has been adjusted to account for the spin-off, but the idea text remains unchanged and may refer to the original presented price of $8.95.
Publicly traded companies mentioned herein: Xerox (XRX) and Hewlett Packard (HPQ).
Highlights
The presenter is short shares of Xerox, likening the company’s current predicament to that of Hewlett Packard (HPQ) when it, too, chose to split. Combining companies can work great in bull markets, but he believes we’re at a point in the cycle where it becomes increasingly more difficult to spin out businesses and attract superior multiples therefrom. Meanwhile, just as in the case of HPQ, the underlying business trends of the companies in question all too often only continue to worsen. Xerox’s recent announcement that it will separate its printing/ document services and BPO businesses may be the latest example of that story playing out.
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